Reference to arbitration is mandatory in terms of arbitration agreement

USP Studios Pvt. Ltd. Vs Ganpati Enterprises & Ors. (Bombay High Court) Held that in a case where there exists an arbitration agreement, the court is under obligation to refer the parties to arbitration in terms of the arbitration agreement. Facts- The plaintiff had advanced a sum of Rs.2 Crore to the defendants. A loan agreement dated 28th July, 2016 evidencing the said transaction came to be executed. The loan was to be repaid after a period of 12 months, along with interest at the rate of 18% p.a. The plaintiff remitted the amount of Rs.2 Crore to the account of defendant no.1 through b...