Rajia Begum v. Barnali Mukherjee

 Background

The dispute arose from a partnership firm, M/s RDDHI Gold. Rajia Begum claimed induction into the partnership by virtue of an Admission Deed dated 17.04.2007, containing an arbitration clause, which was categorically denied by Barnali Mukherjee as forged and fabricated. Parallel proceedings were initiated under s. 9, s. 8, and s. 11 of the Arbitration and Conciliation Act, 1996 (“1996 Act”), resulting in conflicting High Court orders—one declining interim protection and appointment of arbitrator, and another referring the dispute to arbitration under supervisory jurisdiction.

 

Issues Framed

1. Whether disputes can be referred to arbitration under s. 8 of the 1996 Act when the very existence of the arbitration agreement is seriously disputed on allegations of forgery.
2. Whether the High Court was justified in refusing appointment of an arbitrator under s. 11 of the 1996 Act.
3. Whether the High Court exceeded its jurisdiction under Art. 227 Const. of India in reversing concurrent findings of the Trial Court and Appellate Court.
 

Court’s Reasoning

Serious fraud and arbitrability

• Reiterating A. Ayyasamy, Rashid Raza, Avitel, and VidyaDrolia, the Court restated that fraud going to the root of the arbitration agreement itself renders the dispute non-arbitrable.
• Where a party asserts that it never consented to arbitration because the underlying document is forged, the issue becomes jurisdictional and must be examined by the court.

Application to facts

• The Admission Deed surfaced nearly nine years later, was inconsistent with contemporaneous records, and contradicted admitted conduct of the parties.
• In prior s. 9 proceedings, the High Court had already recorded a prima facie finding doubting the existence of the Admission Deed, which had attained finality.
• The arbitration clause was not independent, but embedded in the very document alleged to be forged; thus, consent to arbitrate itself was under a grave cloud.

Sections 8 and 11

• The Trial Court and First Appellate Court rightly refused reference under s. 8, noting serious fraud and non-production of the original/certified Admission Deed as mandated by s. 8(2).
• The High Court erred under Art. 227 by re-appreciating evidence and overturning concurrent findings.
• Conversely, refusal to appoint an arbitrator under s. 11 was correct, as appointment would be premature when existence of the arbitration agreement itself is disputed.
 

Decision 

• Appeal arising from s. 11 proceedings: Dismissed.
• Appeal challenging reference under s. 8: Allowed; High Court’s order referring the dispute to arbitration set aside.
• No order as to costs.
 

Ratio

Where the arbitration clause is contained in a document whose very existence and execution are seriously disputed on allegations of forgery, the dispute is non-arbitrable at that stage, and courts cannot compel reference under s. 8 or appoint an arbitrator under s. 11 of the Arbitration and Conciliation Act, 1996. 


Case Details

• Citation: 2026 INSC 106
• Decided on: 2 February 2026
• Case Title: Rajia Begum v. Barnali Mukherjee (with cross-appeals)
• Court: Supreme Court of India
• Bench: Pamidighantam Sri Narasimha J. and Alok Aradhe J.

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