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Report No. 76

7.5. Section 23.-

Sub-section (1) of section 23 provides that the court shall, by order, refer to the arbitrator the matter in difference which he is required to determine and shall in the order specify such time as it thinks reasonable for the making of the award.

Under sub-section (2), where a matter is referred to arbitration, the court shall not, save in the manner and to the extent provided in this Act, deal with such matter in the suit. This is really the crucial provision in this Chapter, because it is by virtue of this sub-section that the result is established that once the parties agree to refer a pending dispute to arbitration, the jurisdiction of the court is barred except as expressly provided in the Act. No changes are needed in this section.

Arbitration Act, 1940 Back

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