Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court
Live LawThe Bombay High Court has ruled that invocation of arbitration has to be in clear terms, as specified in Section 21 of the Arbitration and Conciliation Act, 1996, and that a mere reference to the claims and disputes sought to be raised by a party, and the existence of an arbitration clause, would not itself mean that arbitration has been invoked by such a party. After the respondent repudiated the claims made by the applicant, the applicant filed an application before the Bombay High Court under Section 11 of the A&C Act, seeking appointment of sole Arbitrator. Hence, the respondent contended that the said legal notice did not amount to a notice invoking arbitration under Section 21 of the A&C Act. The respondent added that the applicant was required to invoke the arbitration clause in clear terms and that a mere legal notice raising claims would not amount to invoking the arbitration clause under Section 21 of the A&C Act.