Section 37 of ACA : Section 37: Appealable Orders

Explanation using Example

Imagine a scenario where Company A and Company B have a contract with an arbitration clause. Company A believes that Company B has breached the contract and wants to resolve the dispute through arbitration.

Company A applies to a local court under Section 8 of the Arbitration and Conciliation Act, 1996 to refer the matter to arbitration. However, the court refuses to refer the parties to arbitration. Company A is dissatisfied with this decision.

Under Section 37(1)(a) of the Act, Company A has the right to appeal the court's decision to a higher court that hears appeals from original decrees. They hope that the higher court will overturn the decision and refer the matter to arbitration as per the original contract terms.