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Arbitration (Protocol and Convention) Act, 1937

3.Stay of proceedings in respect of matters to be referred to arbitration:-

Notwithstanding anything contained in the { the Act 32 of 1940, s.3 and Sch.11, for "Indian Arbitration Act, 1899".} [Arbitration Act 1940], or in the Code of Civil Procedure, 1908, if any party to a submission made in pursuance of an agreement to which the Protocol set forth in the First Schedule as modified by the reservation subject to which it was signed by India applies, or any person claiming through or under him, commences any legal proceedings in any Court against any other part to the submission or any person claiming through or under him in respect of any matter agreed to be referred, any party to such legal proceedings may, at any time after appearance and before filing a written statement or taking any other steps in the proceedings, apply to the Court to stay the proceedings; and the Court, unless satisfied that the agreement or arbitration has become inoperative or cannot proceed, or that there is not in fact any dispute between the parties with regard to the matter agreed to be referred, shall make an order staying the proceedings.

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