Arbitration clause does not bar civil court interim relief where Section 8 is pending and arbitration has not been referred.

An arbitration clause does not by itself oust a civil court's jurisdiction to entertain a suit or grant interim protection. Section 9 of the Arbitration and Conciliation Act, 1996 preserves the court's power to order interim measures, including injunctions and appointment of a receiver, before or during arbitral proceedings. A party seeking reference to arbitration must proceed under Section 8(1); the mere pendency of a Section 8 application does not render interim orders without jurisdiction. On this basis, the civil court was held competent to entertain the suit and pass interim orders, and the challenge based solely on the arbitration clause failed.

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Issues: Whether the Civil Court lacked jurisdiction to entertain the suit and grant interim reliefs merely because the partnership deed contained an arbitration clause, and whether the ex parte interim orders could be interfered with on that ground.

Analysis: Section 9 of the Arbitration and Conciliation Act, 1996 expressly preserves the power of a Court to grant interim measures of protection, including preservation or inspection of property, securing the amount in dispute, interim injunction and appointment of a receiver, even before or during arbitral proceedings. The existence of an arbitration agreement, by itself, does not bar a civil court from entertaining proceedings or granting interim relief where the matter has not yet been referred to arbitration. A party who seeks arbitration must invoke the statutory procedure under Section 8(1) of the Arbitration and Conciliation Act, 1996. In the present case, the defendants had already filed an application under Section 8(1), which was pending before the trial court, and the mere presence of that application did not make the impugned interim orders without jurisdiction.

Conclusion: The Civil Court had jurisdiction to entertain the suit and pass interim orders, and the challenge based on the arbitration clause failed.

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