Section 50 of ACA : Section 50: Appealable Orders

Explanation using Example

Imagine a scenario where a U.S. company and an Indian company have a contract with an arbitration agreement. The Indian company initiates legal proceedings in an Indian court, despite the contract stating that disputes should be settled by arbitration in New York. The U.S. company applies to the Indian court under Section 45 of the Arbitration and Conciliation Act, 1996, asking the court to refer the parties to arbitration in New York. However, the Indian court refuses to refer the parties to arbitration, stating that it has jurisdiction over the dispute.

The U.S. company disagrees with this decision and decides to appeal. According to Section 50(1) of the Act, they are allowed to appeal the Indian court's refusal to refer the parties to arbitration. They take their appeal to the appropriate appellate court in India. If the appellate court upholds the refusal, the U.S. company cannot make a second appeal under this section, as per Section 50(2). However, they still have the right to appeal to the Supreme Court of India if they believe there are substantial grounds to do so.