Effect of legal proceedings on arbitration

Effect of legal proceedings on arbitration.-

1. (1) No reference nor an award shall be rendered invalid by reason only of the commencement of legal proceedings upon the subject-matter of the reference, but when legal proceedings upon the whole of the subject-matter of the reference have been commenced between all the parties to the reference and a notice thereof has been given to the arbitrators or umpire, all further proceedings in the pending reference shall, unless a stay of proceedings is granted under section 34, be invalid.
2. (2) In this section the expression "parties to the reference" includes any persons claiming under any of the parties and litigating under the same title.