I.T.C. LTD. vs GEORGE JOSEPH FERNANDES

The Supreme Court held that under Section 34 of the Arbitration Act, 1940, the court has jurisdiction to decide the validity of a contract containing an arbitration clause. The Court clarified that the existence of a valid agreement is a condition precedent for arbitration and must be determined based on affidavits and documents rather than oral evidence. The Court also distinguished between common and mutual mistakes under Section 20 of the Contract Act, 1872, ruling that an erroneous opinion about the value of the contracted item does not constitute a mistake of fact.