Rajia Begum v. Barnali Mukherjee, 2026 INSC 106 - Arbitration Agreement - Fraud - Art. 227 Petition
Arbitration and Conciliation Act 1996 - Section 7,8,11- when an allegation of fraud is made with regard to arbitration agreement itself, such a dispute is generally recognised as a dispute, which is in the realm of nonarbitrability and the court will examine it, as a jurisdictional issue only to enquire whether the dispute has become nonarbitrable due to one or the other reason. (Para 15) A party may be bound by the arbitral process only if it is first shown, even at a prima facie level, that such a party had agreed to submit disputes to arbitration. Where the arbitration agreement itself is alleged to be forged or fabricated, the disputes ceases to be merely contractual and strikes at the very root of arbitral jurisdiction. (Para 20)
Arbitration and Conciliation Act 1996 - Section 8,11 - When the existence of the arbitration agreement itself is in serious dispute and requires adjudication, appointment of an arbitrator would be premature and legally impermissible. (Para 23)
Constitution of India - Article 227 - Arbitration - The High Court, while exercising jurisdiction under Article 227 of the Constitution, was not justified in dislodging the concurrent findings and directing reference of the dispute to arbitration, particularly when the very existence of the arbitration agreement was under serious doubt - The supervisory jurisdiction of the High Court under Article 227 of the Constitution is not an appellate jurisdiction in disguise, and it does not permit reappreciation of evidence. (Para 22)
Case Info
Basic Case Information
Case name and neutral citation:Rajia Begum v. Barnali Mukherjee, 2026 INSC 106
Coram:Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe
Judgment date:2 February 2026 (New Delhi)
Case Laws and Citations Referred
- A. Ayyasamy v. A. Paramasivam & Others, (2016) 10 SCC 386
- Rashid Raza v. Sadaf Akhtar, (2019) 8 SCC 710
- Vidya Drolia & Ors. v. Durga Trading Corporation, (2021) 2 SCC 1
- N.N. Global Mercantile Pvt. Ltd. v. Indo Unique Flame Ltd., (2021) 4 SCC 379
- Avitel Post Studioz Ltd. & Ors. v. HSBC PI Holdings (Mauritius) Ltd., (2021) 4 SCC 713
- Sushma Shivkumar Daga & Anr. v. Madhurkumar Ramkrishnaji Bajaj & Ors., (2024) 12 SCC 253
- K. Mangayarkarasi & Anr. v. N.J. Sundaresan & Anr., (2025) 8 SCC 299
- ITI Ltd. v. Siemens Public Communications Network Ltd., (2002) 5 SCC 510
- Nirma Ltd. v. Lurgi Lentjes Energietechnik GMBH, (2002) 5 SCC 520
- Deep Industries Ltd. v. Oil and Natural Gas Corporation Ltd. & Anr., (2020) 15 SCC 706
- Bhaven Construction v. Executive Engineer, Sardar Sarovar Narmada Nigam Ltd., (2022) 1 SCC 75
- SBP & Co. v. Patel Engineering Ltd. and Anr., (2005) 8 SCC 618
- Lalchand Shah v. Rishabh Enterprises, (2018) 15 SCC 678
- Managing Director Bihar State Food and Civil Supply Corporation Limited and Another v. Sanjay Kumar, (2025) SCC OnLine SC 1604
Statutes/Laws Referred
- Arbitration and Conciliation Act, 1996
- Section 8 (reference of disputes to arbitration)
- Section 9 (interim measures by court)
- Section 11 (appointment of arbitrators)
- Constitution of India
- Article 227 (supervisory jurisdiction of High Courts)
Brief Summary (Three Sentences)
This case arises from a partnership dispute where the respondent claimed to be a partner on the basis of an Admission Deed dated 17.04.2007, which the appellant alleged was forged, thereby disputing the very existence of the arbitration agreement embedded in that document. The Supreme Court held that, given serious and cogent doubts about the genuineness of the Admission Deed and concurrent findings of the trial and appellate courts, the dispute falls into the category of non‑arbitrable matters at this stage and cannot be referred to arbitration under Sections 8 or 11 of the Arbitration and Conciliation Act, 1996. Consequently, the Court set aside the High Court’s order referring the suit to arbitration, affirmed the High Court’s refusal to appoint an arbitrator, dismissed SLP (C) No. 6013 of 2021 and allowed SLP (C) No. 20262 of 2021.
