Where parties decide to put an end to the original contract as if it never existed and substituted a new contract with it, then in such a situation the original contract is extinguished by the substituted one and the arbitration clause of the original one perishes with it.
Supreme Court: In an appeal against the judgment passed by Telangana High Court, wherein the High Court dismissed the application
“Detailed arguments on whether an agreement which contains an arbitration clause has or has not been novated cannot possibly be decided in exercise of a limited prima facie review as to whether an arbitration agreement exists between the parties.”
Delhi High Court: Jayant Nath, J., while addressing the matter stressed upon the essentiality of Novation and Arbitration Agreement. Factual Matrix The