M/S Sundaram Finance Limited And Anr vs T. Thankam

The Supreme Court held that once an application is filed under Section 8 of The Arbitration and Conciliation Act, 1996, the civil court must assess its jurisdiction in light of the arbitration agreement. The Court clarified that the mere presence of an arbitration clause does not oust the civil court's jurisdiction, particularly when the relief sought pertains to acts that are illegal or against public policy, as per Section 5 of the Arbitration Act. The appeal was allowed, overturning the High Court's decision that permitted the civil court to exercise jurisdiction despite the arbitration clause.