Arbitration reference requires a binding agreement covering all necessary parties and the full subject matter of the suit.

Section 8 of the Arbitration and Conciliation Act, 1996 is available only where the subject matter of the suit is covered by an arbitration agreement binding on all necessary parties. Where one defendant is not a signatory to the arbitration agreement, and the reliefs arise from subsequent transactions rather than the earlier shareholders' agreement, reference to arbitration is not warranted. The text also notes a procedural defect in relying on only a self-attested copy of the agreement and the existence of parallel statutory proceedings, both supporting the view that arbitration was not available in the manner claimed. The trial court's refusal to refer the dispute to arbitration was upheld.

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Issues: Whether the dispute in the suit was referable to arbitration under the arbitration clause, and whether the application under Section 8 of the Arbitration and Conciliation Act, 1996 was maintainable when one of the parties to the suit was not a signatory to the arbitration agreement and the claim arose from subsequent transactions.

Analysis: The agreement relied upon contained an arbitration clause, but the suit involved a party who was not shown to be bound by that agreement. Section 8 applies only where the subject matter of the action is covered by an arbitration agreement and all necessary parties are amenable to that agreement. The reliefs claimed arose from subsequent dealings and sought specific performance and consequential reliefs that were not shown to fall wholly within the earlier shareholders' agreement. The Court also noted the procedural defect in filing only a self-attested copy of the agreement and accepted the finding that the revisionist had itself pursued parallel statutory proceedings, supporting the view that the arbitration clause was not available in the manner asserted.

Conclusion: The dispute was not referable to arbitration under Section 8, and the trial court's refusal to refer the matter to arbitration was upheld.

Final Conclusion: The revisional challenge failed, and the order declining reference to arbitration was maintained.

Ratio Decidendi: Section 8 can be invoked only when the action is wholly covered by an arbitration agreement binding on the necessary parties; a non-signatory or a dispute arising beyond that agreement cannot be compelled to arbitration.

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