
Filing Written Statement Does Not Waive Right To Arbitration If Preliminary Objection Is Raised At Outset: Jammu & Kashmir High Court
Live LawThe Jammu and Kashmir High Court bench of Justice Rajnesh Oswal held that mere filing of the written statement in a suit does not constitute a waiver of right to arbitration if the party has raised a preliminary objection in respect of the arbitration clause at the outset. The High Court also noted that the Respondents didn't waive their right to arbitration and complied with the requirement of bringing the arbitration clause to the court's notice at the appropriate time. The High Court held that: “The argument though appears to be attractive but bereft of any legal force, as a preliminary objection in respect of maintainability of suit was raised by the respondents in their written statement in reference to the arbitration clause existing in the agreement and the lack of jurisdiction on part of the learned trial court to proceed ahead with the suit. The respondents brought to the notice of the learned trial court the existence of arbitration clause in the agreement through the medium of written statement and at the same time submitted their first statement on the substance of the dispute, therefore, it cannot be said that the respondents had submitted to the jurisdiction of the learned trial court to proceed ahead with the suit and waived off their right to get the matter adjudicated through arbitration.” Therefore, the High Court modified the trial court's order to the extent that the suit was disposed of by referring the parties to arbitration.
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