Arbitration Agreement

Arbitration Agreement—Contract containing arbitration agreement voidable at the option of a party—Effect on arbitration agreement—Held, where the contract or instrument is voidable at the option of a party (as for example under section 19 of the Indian Contract Act, 1872), the invalidity that attaches itself to the main agreement may also attach itself to the arbitration agreement, if the reasons which make the main agreement voidable, exist in relation to the making of the arbitration agreement also—For example, if a person is made to sign an agreement to sell his property under threat of physical harm or threat to life, and the said person repudiates the agreement on that ground, not only the agreement for sale, but any arbitration agreement therein will not be binding—Indian Contract Act, 1872, Section 19. 

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File Name: - SC_AUGUST 2011_3

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