The Bombay High Court recently held that when remedies are available to a party seeking an injunction under the Arbitration and Conciliation Act, 1996 (“Act”), an anti-arbitration injunction cannot be obtained to circumvent provisions of the Act.
A three judge Bench reiterated that ruling of an arbitrator on jurisdiction can be challenged only under section 34 (setting aside the award) of the Act as a proper remedy.
The Court said, “On the ruling of Arbitrator on jurisdiction, no appeal is prescribed under Section 37(2)(a) of the Act. The only remedy prescribed is under Section 34 of the Act. We are therefore, of the view that there is no case made out to interfere in the present Appeal.”