New Delhi, Aug. 7 -- In a significant judgment, the Supreme Court has outlined the legal principles governing the arbitrability of disputes involving serious allegations of fraud, while dismissing a batch of civil appeals challenging the Patna High Court's decision to appoint arbitrators under Section 11 of the Arbitration and Conciliation Act, 1996.
A Division Bench comprising Justice P.S. Narasimha and Justice Manoj Misra reiterated a set of guiding principles to determine when disputes involving fraud can and cannot be resolved through arbitration. The appeals stemmed from a challenge to the Patna High Court's orders allowing arbitration proceedings in multiple cases despite allegations of serious fraud.
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