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Union Of India (Uoi) Through ... vs Bhagwati Cottons Ltd., G.P.B. ... on 22 February, 2008
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National Insurance Co. Ltd. vs Punam Chand Jain And Anr. on 4 February, 1982
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Central Government Act
Section 28 in The Indian Contract Act, 1872
28. Agreements in restraint of legal proceedings void.- Every agreement,-
(a) by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights; or
(b) which extinguishes the rights of any party thereto, or discharges any party thereto from aby liability, under or in respect of any contract on the expiry of a specified period so as to restrict any party from enforcing his rights, is void to that extent. Saving of contract of refer to arbitration dispute that may arise.- Exception 1.- This section shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be
1. Exceptions 2 and 3 relating to agreements between partners upon, or in anticipation of, dissolution of partnership and during continuance of partnership, respectively were rep. by Act 9 of 1932, s. 73 and Sch. II. See now ss. 11 and 36 (2) of that Act. 2 Ins. by Act, 1 of 1997, s. 2. w. e. f. (8 - 1- 1997 ).
referred to arbitration, and that only the amount awarded in such arbitration hall be recoverable in respect of the dispute so referred. Suits barred by such contracts.- 1[ When such a contract has been made, a suit may be brought for its specific performance and if a suit, other than for such specific performance, or for the recovery of the amount so awarded, is brought by one party to such contract against any other such party, in respect of any subject which they have so agreed to refer, the existence of such contract shall be a bar to the suit. Saving of contract to refer questions that have already arisen. Saving of contract to refer questions that have already arisen.- Exception 2.- Nor shall this section render, illegal any contract in writing, by which two or more persons agree to refer to arbitration any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration. 2[