M/S. Magma Leasing & Fin. Ltd. & Anr vs Potluri Madhavilata & Anr

The Supreme Court held that an arbitration agreement can survive the termination of the underlying contract, as per Section 8 of the Arbitration and Conciliation Act, 1996. The Court clarified that the existence of disputes arising from the terminated agreement necessitates referral to arbitration, emphasizing that the arbitration clause remains operative despite the contract's termination. The appeal was allowed, overturning the lower court's decision that denied the referral to arbitration.