A. Ayyasamy vs A. Paramasivam - Supreme Court Important Judgment
A. Ayyasamy vs A. Paramasivam - Supreme Court Important Judgment 2016 -
On 4th October, 2016, in the case of A. Ayyasamy vs A. Paramasivam & Ors. [Civil Appeal Nos. 8245 – 8246 of 2016], it was held that “mere allegation of fraud simplicitor may not be a ground to nullify the effect of arbitration agreement between the parties.” It was held that when the case of fraud is set up by one of the parties and on that basis that party wants to wriggle out of that arbitration agreement, a strict and meticulous inquiry into the allegations of fraud is needed and only when the Court is satisfied that the allegations are of serious and complicated nature that it would be more appropriate for the Court to deal with the subject matter rather than relegating the parties to arbitration, then alone such an application under Section 8 of the Arbitration and Conciliation Act, 1996 should be rejected.