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Arbitration & Commercial LawSupreme Court of India

Rajia Begum v. Barnali Mukherjee

Civil Appeal · 2026 INSC 106Decided 2 Feb 2026
C.A. No.-000674-000674 - 2026
Justice Pamidighantam Sri Narasimha · Justice Alok Aradhe

Background

Rajia Begum claimed she became a 50.33% partner in a firm, "M/s RDDHI Gold," through a 2007 "Admission Deed" executed under a power of attorney, but Barnali Mukherjee (a co-partner) categorically denied that the deed was ever executed and alleged it was forged and fabricated. When Rajia Begum filed a civil suit relying on the deed, the other side sought to send the dispute to arbitration under an arbitration clause said to be contained in that very deed. Lower courts had earlier already rejected her separate attempt to get interim protection under Section 9, finding the deed's existence doubtful, but a High Court revision later reversed course and referred the fraud dispute to arbitration, while a related application to appoint an arbitrator under Section 11 was rejected, creating conflicting outcomes on the same facts.

Decision Breakdown

The Supreme Court held that when the very existence or execution of the document containing the arbitration agreement is itself seriously disputed on allegations of forgery, going to the root of the agreement, the dispute is not arbitrable at that stage and cannot be referred to arbitration. It found that the Trial Court and First Appellate Court had concurrently and soundly held that the fraud allegations were serious and that the claimant had failed to produce the original or certified copy of the Admission Deed as legally required, and that the High Court, exercising limited supervisory jurisdiction under Article 227, was wrong to overturn those concurrent findings as if sitting in appeal. The Court accordingly set aside the High Court's order referring the dispute to arbitration under Section 8, while affirming the separate High Court order that had rejected the appointment of an arbitrator under Section 11, since appointing an arbitrator would be premature when the arbitration agreement's very existence remains unresolved.

Lesson Learnt

Arbitration clauses are only enforceable if the underlying agreement containing them is genuine: a party cannot be forced into arbitration when the opposing side raises serious, substantiated allegations that the very document with the arbitration clause was forged; such threshold disputes must first be resolved by a court, not an arbitrator.

Rajia Begum v. Barnali Mukherjee – Legal Case Shots | LegalAware