Law · Arbitration and Conciliation Act, 1996
Under Section 8 of the Arbitration & Conciliation Act, 1996, a Civil Court before which an action is brought in a matter which is the subject matter of an arbitration agreement shall, if a party applies not later than the date of submitting their first statement on the substance of the dispute, refer the parties to arbitration. What is the status of the suit upon such reference?
- 1The court stays further proceedings and adjourns the suit sine die
- 2The court decrees the suit in terms of the arbitration agreement
- 3The court dismisses the suit altogether
- 4The court refers the parties to arbitration and the suit stands disposed of in terms of the reference✓
Correct answer
The court refers the parties to arbitration and the suit stands disposed of in terms of the reference
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