Claims Cannot Be Referred To Arbitration When The Requirement To Mandatorily Notify Such Claims Was Not Followed: Delhi High Court
1 year, 6 months ago

Claims Cannot Be Referred To Arbitration When The Requirement To Mandatorily Notify Such Claims Was Not Followed: Delhi High Court

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The Delhi High Court has held that claims of a party cannot be referred to arbitration when the requirement to mandatorily notify such claims with the General Manger was not followed. The Court also held if the contract provides for arbitration only if the aggregate value of claims does not exceed 20% of the contract value, the Court would not refer the parties to arbitration when the claims exceed such an aggregate value. Clause 64 precluded the non-conforming disputes from being referred to arbitration The aggregate value of the claims of the petitioner would exceed the limit of 20% of the value of the project provided under Clause 34 of the GCC, therefore, the dispute cannot be referred to arbitration. The Court also observed that Clause 34 of GCC further provides that the aggregate value of all the claims being referred to arbitration should not be more than 20% of the value of the project, therefore, it was necessary for the petitioner to have given a claim wise quantification of its claims to fall within the threshold limit, however, it failed to indicate the claim value against certain claims.

History of this topic

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