A. AYYASAMY vs A. PARAMASIVAM

The Supreme Court addressed the applicability of Section 8 of the Arbitration and Conciliation Act, 1996, in a dispute between partners regarding the administration of a hotel. The Court held that the existence of an arbitration clause in the partnership deed mandates referral to arbitration, despite allegations of fraud raised by the respondents. The Court found that the trial court and High Court erred in relying on the precedent set in N. Radhakrishnan v. Maestro Engineers, which was deemed per incuriam, thus reinforcing the enforceability of arbitration agreements in such disputes.