Report No. 176
2.4.7 Provision to be made for stay of action in case reference is made under sec.8:
A question was also posed in the seminars as to what should happen to the action that has been filed before the 'judicial authority' in the event of a reference to arbitration is made under section 8. The Commission is of the view that a separate sub-section should be added that in the event of a reference being made under section 8, the action before the judicial authority should remain stayed and the stay should be subject to the result of the order of the judicial authority on jurisdictional issues. For example, if the agreement is declared void or not in existence or not enforceable, the action filed before the judicial authority has to go on for disposal on merits.