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WHAT DISPUTES MAY BE REFERRED?
The parties to an arbitration agreement may refer to arbitration,
a dispute which has arisen or which may arise between them, in respect
of a defined legal relationship, whether contracted or not.
Thus, all matters of civil nature whether they relate to present
or future disputes may form the subject matter of reference. The
dispute, however, must be the consequence of legal relationship
arising out of an obligation, the performance of which is a duty
under the law and for its breach a remedy is provided.
BAR TO SUIT
When the parties have entered into an arbitration agreement, they
cannot file a suit in a court of law in respect of any matter covered
by the agreement; otherwise the very purpose of arbitration will
be frustrated. The court will normally not intervene except where
so provided by the Act.
WHAT DISPUTES CANNOT BE REFERRED FOR ARBITRATION
The
following disputes cannot be referred to arbitration:
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Insolvency
proceedings.
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Lunacy
proceedings.
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Proceedings
for appointment of a guardian to a minor.
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Question
of genuineness or otherwise of a will or matter relating to
issue of a probate.
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Matters
of criminal nature.
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Matters
concerning Public Charitable Trusts.
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Disputes
arising from and founded on an illegal contract
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