Referral Court Can Deny Arbitration Only In Rare Cases Where Fraud Allegation Lacks Prima Facie Merit: Calcutta High Court

In a significant judgment, the Calcutta High Court has clarified the role of a referral court in arbitration disputes, particularly in cases involving allegations of fraud. The bench, presided over by Justice Shampa Sarkar, held that unless an arbitration agreement is prima facie inoperative due to fraud, the referral court should not delve into a roving inquiry regarding the existence of fraud. The inquiry into fraud, according to the Court,…