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Power of Court to give relief where arbitrator is not impartial or dispute referred involves question of fraud.
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39.—(1) Where—
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(a) an agreement between any parties provides that disputes which may arise in the future between them shall be referred to an arbitrator named or designated in the agreement, and
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(b) after a dispute has arisen any party, on the ground that the arbitrator so named or designated is not or may not be impartial, applies to the Court for leave to revoke the authority of the arbitrator or for an injunction to restrain any other party or the arbitrator from proceeding with the arbitration,
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it shall not be a ground for refusing the application that the said party at the time when he made the agreement knew, or ought to have known, that the arbitrator, by reason of his relation towards any other party to the agreement or of his connection with the subject referred, might not be impartial.
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(2) Where—
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(a) an agreement between any parties provides that disputes which may arise in the future between them shall be referred to arbitration, and
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(b) a dispute which so arises involves the question whether any party has been guilty of fraud,
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the Court shall, so far as may be necessary to enable the question to be determined by the Court, have power to order that the agreement shall cease to have effect and power to give leave to revoke the authority of any arbitrator or umpire appointed by or by virtue of the agreement.
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(3) In any case where by virtue of this section the Court has power to order that any arbitration agreement shall cease to have effect or to give leave to revoke the authority of any arbitrator or umpire, the Court may refuse to stay any action brought in breach of the agreement.
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