Section 8 of Arbitration and Conciliation Act, 1996 will apply only when -
Parties are substanbtially same; for namesake if some witnesses are added as parties, that does not prevent the Court or Tribunal or judicial forum from directing the parties to arbitration as mandated by Section 8; a party must be shown to be either a necessary party or at the least a proper party.
Subject matter - the core issue in the suit or proceedings before the Court or Tribunal or judicial forum should be the arbitrable dispute as stated by the Applicant who has invoked Section 8.
The relief must be capable of being granted by Arbitratal Tribunal. If it is a special relief vested by law in a particular court or Tribunal or judicial forum, arbitral tribunal cannot exercise jurisdiction over such subject matters.
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