An arbitration clause in a contract is not binding since it is hit by section 28 of the Indian Contract Act, 1872, being an agreement that restrains a party from invoking its legal remedy to file a suit. This proposition is:

Option A: Untrue, since the Indian Contract Act has no application to arbitration proceedings.

Option B: Untrue, since Exceptions 1 and 2 to section 28 save arbitration agreements from being void.

Option C: Untrue since the Arbitration & Conciliation Act, 1996 is a code in itself.

Option D: Untrue, since under section 16 of the Arbitration & Conciliation Act, 1996, an arbitration clause is to be treated as an independent agreement.

Correct Answer

Option: b

Explanation

Untrue, since Exceptions 1 and 2 to section 28 save arbitration agreements from being void.

Sample Mock Tests for Practice

THE LIMITATION ACT, 1963 (PAPER 07 Q. NO. 241 TO 269)

AILET – National Law University Delhi Entrance Test (NLU 2020)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 07 Q. NO. 241 TO 280)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 15 Q. NO. 561 TO 600)

AILET – National Law University Delhi Entrance Test (NLU 2012)

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 13 Q. NO. 481 TO 520)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 14 Q. NO. 521 TO 560)

CLAT 2023

THE HIMACHAL PRADESH URBAN RENT CONTROL ACT, 1987 (PAPER 02 Q. NO. 31 TO 60)

THE COMMERCIAL COURTS ACT, 2015 (PAPER 01 Q. NO. 1 TO 12)

THE MAHARASHTRA RENT CONTROL ACT, 1999 (PAPER 01 Q. NO. 1 TO 15)

SAMPLE PAPER 01

THE LAW OF TORTS (PAPER 04 Q. NO. 136 TO 180)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 08 Q. NO. 246 TO 280)

BIHAR LOWER JUDICIAL SERVICES 2018

THE CONSTITUTION OF INDIA, 1949 (PAPER – 01 Q. NO. 1 TO 35)

CLAT 2019

THE INDUSTRIAL DISPUTES ACT, 1947 (PAPER 01 Q. NO. 1 TO 15)

THE LIMITATION ACT, 1963 (PAPER 04 Q. NO. 121 TO 160)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 20 Q. NO. 761 TO 800)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 01 Q. NO. 1 TO 35)

THE CONSUMER PROTECTION ACT, 1986 (PAPER 01 Q. NO. 1 TO 13)

THE HINDU MINORITY AND GUARDIANSHIP ACT, 1956 (PAPER -01 Q. NO. 1 TO 14)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 19 Q. NO. 721 TO 760)

THE SALE OF GOODS ACT, 1930 (PAPER – 01 Q. NO. 1 TO 35)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 01 Q. NO. 1 TO 40)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 15 Q. NO. 561 TO 600)

THE HINDU MARRIAGE ACT, 1955 (PAPER -3 Q. NO. 51 TO 75)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 21 Q. NO. 801 TO 840)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 12 Q. NO. 386 TO 420)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 07 Q. NO. 211 TO 231)

AIBE-XII-2018-I (BCI-JUN-2018-SET-A) (ALL INDIA BAR EXAM 2018-I)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 08 Q. NO. 281 TO 320)

MADHYA PRADESH LOWER JUDICIAL SERVICES 2018(1)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 11 Q. NO. 401 TO 440)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 02 Q. NO. 36 TO 70)