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    <title>1977 (8) TMI 173 - CALCUTTA HIGH COURT</title>
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    <description>Allegations that an agreement was procured by fraud and misrepresentation were treated as going to the formation and legal existence of the contract, so the arbitration clause could not operate if the contract was void ab initio rather than merely voidable. On that footing, a stay of the suit under section 34 of the Arbitration Act, 1940 was considered inappropriate. The fraud allegations also supported refusal of stay in discretion, particularly where public adjudication was warranted and a necessary party to the suit was not bound by the arbitration agreement, making severance of the controversy impracticable.</description>
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      <description>Allegations that an agreement was procured by fraud and misrepresentation were treated as going to the formation and legal existence of the contract, so the arbitration clause could not operate if the contract was void ab initio rather than merely voidable. On that footing, a stay of the suit under section 34 of the Arbitration Act, 1940 was considered inappropriate. The fraud allegations also supported refusal of stay in discretion, particularly where public adjudication was warranted and a necessary party to the suit was not bound by the arbitration agreement, making severance of the controversy impracticable.</description>
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