Does an arbitration clause become non-existent when the tender process and the agreement are quashed by the High Court? – State of Sikkim and Anr. Vs. Tashi Delek Gaming Solutions (P) Ltd. – Sikkim High Court
The Hon’ble Court referring Sundaram Finance Ltd. vs. NEPC India Ltd., Appeal (civil) 141-143 of 1999 and Interplay between Arbitration Agreements under A&C Act, 1996 & Stamp Act, 1899, In Re (2023) ibclaw.in 153 SC, holds that the District Judge did not realise that with the enactment of the Arbitration Act of 1996, the view that the arbitration clause was an integral part of the contract and perished with it, had undergone a change. Now, the separability presumption ensures the validity of an arbitration agreement contained in an underlying contract, notwithstanding the invalidity, illegality, or termination of such contract.