Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court
2 years, 6 months ago

Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court

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The 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.

History of this topic

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3 days, 22 hours ago
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