Contractual ouster cannot defeat statutory arbitration enforcement; award execution remains maintainable despite exclusion clause.

A contractual clause stating that the Arbitration and Conciliation Act, 1996 would not apply could not exclude the statutory arbitration regime or defeat enforcement of an arbitral award. Parties may waive private rights, but they cannot contract out of a statute, particularly where the legislative scheme and public policy are engaged. An ouster clause must be strictly construed and cannot nullify the remedy expressly provided by law for enforcing an award as a decree. The clause was therefore invalid, and the objection to the maintainability of the execution petition was untenable.

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Issues: Whether a contractual clause stating that the Arbitration and Conciliation Act, 1996 shall not apply could oust the statutory scheme for enforcement of the award, and whether the execution petition based on the award was maintainable.

Analysis: The agreement contained an arbitration clause but also stated that the Arbitration and Conciliation Act, 1996 would not be applicable. The Court held that parties may waive private rights, but they cannot contract out of a statute or defeat a statutory remedy where public policy and the legislative scheme are involved. A clause excluding the operation of the arbitration statute was therefore void, since the Act governs arbitration, finality of awards, and enforcement of awards as decrees. The Court further held that an ouster clause must be strictly construed and cannot be used to deny judicial enforcement of an award where the statute itself provides such enforcement. The objection to maintainability was thus found untenable.

Conclusion: The ouster clause was invalid and the execution petition was maintainable; the finding that the award could not be executed was incorrect.

Ratio Decidendi: A contractual term cannot exclude the operation of a statutory arbitration regime or nullify the statutory enforceability of an arbitral award, and an ouster clause will not be given effect where it defeats public policy or the remedy expressly provided by law.

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