Forgery Allegation Cannot Automatically Prevent Arbitration: Madras High Court Judgment 2026
Court category: High Court
Court / details: Madras High Court - Commercial Division
Location: Chennai, Tamil Nadu
Madras High Court appoints a sole arbitrator in a land aggregator agreement dispute despite a forgery allegation, examining the existence of the arbitration clause.
Forgery Allegation Does Not Automatically Prevent Appointment of Arbitrator: Madras High Court
Case: Inderchand Kochar v. D. Devasitham
Case No.: Arb. O.P. (Commercial Division) No.513 of 2026
Judgment Date: 30 October 2026
Neutral Citation: 2026:MHC:4378
Background of the Dispute
The dispute arose from a Land Aggregator Agreement dated 6 March 2016. The petitioner sought appointment of an arbitrator to resolve disputes arising from the commercial arrangement.
The respondent raised objections concerning the genuineness and execution of the agreement, including an allegation of forgery.
Principal Legal Question
Can a party prevent the appointment of an arbitrator merely by alleging that the underlying agreement is forged?
The answer depends on the available record, the existence of an arbitration agreement and the nature of the challenge. An allegation of forgery does not automatically defeat a request for arbitration.
Madras High Court's Findings
The Court considered the respondent's written admissions and communications relating to the agreement. It found that the arbitration clause was not genuinely in doubt on the facts presented.
The Court relied on the Supreme Court's approach in Salson Liquors Private Limited, recognising that issues about the genuineness or valid execution of agreements containing arbitration clauses may appropriately be examined by the arbitral tribunal as preliminary questions.
Appointment of Arbitrator
The High Court allowed the arbitration original petition and appointed Justice R. Suresh Kumar, retired Judge of the Madras High Court, as Sole Arbitrator to adjudicate the disputes relating to the Land Aggregator Agreement dated 6 March 2016.
Practical Legal Significance
- A bare allegation of forgery need not defeat the arbitral process at the threshold.
- Admissions, correspondence and surrounding documents can help establish the existence of an arbitration agreement.
- Challenges to authenticity may remain open for determination by the arbitrator.
- Appointment of an arbitrator does not itself determine the validity of every disputed document or the merits of the underlying commercial claim.
Relevance to Land and Commercial Transactions
This judgment is useful for disputes involving property development agreements, land aggregation arrangements, business contracts and other commercial transactions containing arbitration clauses.
Parties should preserve signed agreements, correspondence, acknowledgements and related contractual documents when invoking or resisting arbitration.
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