Report No. 76
8.43. Report of Civil Justice Committee.-
The Civil Justice Committee1 noticed the difficulty caused by this decision, particularly in cases where the arbitration was going on at a place far distant from the court in which the suit was Instituted. It recommended that the mere filing of a suit should not interrupt the arbitration proceedings. Accordingly, in the Bill of 1939, the necessary clause was drafted. The Select Committee made certain changes in the Bill, and the law now under section 35 is that it is only after notice is given that the arbitration proceedings become invalid.2
1. Civil Justice Committee Report (1924-25), p. 213, para. 9 and p. 217, para. 19; N.D. Basu, (1977), pp. 950, 951
2. For the old law, see AU India Groundnut Syndicate (in re:), AIR 1945 Born 497 (502, 503) (Blagden, J.).