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2010 (7) TMI 844 - SC - Companies LawWhether the Section 89 of the Code of Civil Procedure empowers the court to refer the parties to a suit to arbitration without the consent of both parties, arise for consideration in this appeal? Held that:- Failure to invoke Section 89 suo moto after completion of pleadings and considering it only after an application under Section 89 was filed, is erroneous. A civil court exercising power under Section 89 of the Code cannot refer a suit to arbitration unless all the parties to the suit agree for such reference. Appeal is allowed and the order of the trial court referring the matter to arbitration and the order of the High Court affirming the said reference are set aside.
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