Can Arbitration Clause Be Invoked In A Dispute Arising After Parties Compromise? SC Explains [Read Judgment]

Ashok Kini

31 July 2019 12:59 PM IST

"Since the respondent has raised the plea that the compromise decree is vitiated by fraud, the merits of such a plea could be decided only by the Civil Court upon consideration of the evidence adduced by the parties.”

The Supreme Court has observed that when the parties to a contract containing arbitration clause have settled their differences and compromised the matter, arbitration clause in the prior agreement cannot be invoked in the dispute subsequently arising between the parties after such compromise.In Zenith Drugs & Allied Agencies Pvt. Ltd. vs. Nicholas Piramal India Ltd, as per the contract,...

Can Arbitration Clause Be Invoked In A Dispute Arising After Parties Compromise? SC Explains [Read Judgment]

Ashok Kini

"Since the respondent has raised the plea that the compromise decree is vitiated by fraud, the merits of such a plea could be decided only by the Civil Court upon consideration of the evidence adduced by the parties.”

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