ORIENT TRANSPORT CO. GULABRA AND ANOTHER. vs JAYA BHARAT CREDIT AND INVESTMENT CO., LTD.,AND ANR.

The Supreme Court held that Section 32 of the Arbitration Act, 1940 does not bar suits challenging the validity of a contract merely because it contains an arbitration clause. The Court clarified that the existence of the arbitration agreement can be contested in a civil suit, as Section 32 is limited to the existence and validity of the arbitration agreement itself. The judgments of the trial Court, appellate Court, and High Court were set aside, allowing the appeal and affirming the right to bring a civil suit under Section 9 of the Code of Civil Procedure.