judgment Section 8 of the Arbitration and Conciliation Act, 1996

The object of the Act is to ensure that where parties can agree to resolve their differences through recourse of arbitral proceedings, every endeavour should be made to make them to traverse this avenue rather than knock at the doors of the Courts. In all such cases it is difficult to appreciate why the Plaintiff has filed a Suit when it was aware of the existence of an Arbitration Clause. In the event of the Plaintiff's ignorance of this position, no prejudice would be caused to it if the parties are referred to arbitration no sooner the position is learnt of.