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2018 (8) TMI 2022 - HC - Indian LawsSeeking declaration that they are not obliged to pay an amount under the term loan facility - Section 8 of the Arbitration and Conciliation Act, 1996 - HELD THAT:- There is an apparent distinction between an order containing error apparent on the face of the record and the illegal and erroneous order. In former case, Court can exercise the review jurisdiction but in later case, the remedy lies by moving the Higher Forum. The scope under Section 8 of the said Act is very limited and limited to the extent of the cause of action pleaded in the suit in relation to the arbitration clause or agreement. If the subject dispute is covered by an arbitration agreement, it is imperative on the Court to refer the parties to arbitration instead of venturing to proceed to decide the suit on merit. If an express embargo is created under the statute, the Court cannot travel beyond it. The Court cannot pass such a direction which is not contemplated under Section 8 of the said Act and, therefore, the direction as sought for in the instant application is beyond the legal competence of the Court who was in seisin of the suit and was exercising jurisdiction within strict parameters of section 8 of the said Act. Mere granting a liberty to file a review application cannot be perceived to have conferred any right upon the litigant to have the order in his favour as the Court before hearing the review application has to decide the said application within the circumference of the provision applicable in this regard. This Court does not find that the grounds taken for review comes within the periphery of Order XLVII Rule 1 of the Code of Civil Procedure and, therefore, the review application is liable to be dismissed.
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