Interpretation Of Contractual Stipulations Must Be Done To Give Full Effect To Arbitration Agreement: Rajasthan High Court
3 months, 2 weeks ago

Interpretation Of Contractual Stipulations Must Be Done To Give Full Effect To Arbitration Agreement: Rajasthan High Court

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The Rajasthan High Court Bench of Justice Sudesh Bansal has held that it is a well-established principle of law if there is any contractual stipulation between the parties which under-mines the scope of the arbitration clause. Since, it is not indicated in the arbitration clause that decision of Arbitrator shall be final and binding upon the parties which is one of the essential attributes of an arbitration agreement. Observation of the court: The court held that it is a well-established principle of law if there is any contractual stipulation between the parties which under-mines the scope of the arbitration clause. Additionally, the court observed that from bare perusal of Clause 22 reflects the intention of parties to refer the dispute to the arbitration for its decision and further the clause does not exclude the attributes of an arbitration agreement that the decision of Arbitrator shall not be final and would not be binding on the parties.

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