Can Initiate Arbitral Proceedings Without Other Party's Consent Even If Arbitration Mentioned As Alternative Settlement Method: Delhi High Court
The Delhi High Court bench comprising Justice Prateek Jalan held that a dispute resolution clause providing for alternative modes of settlements, including arbitration, and containing the term “will”, doesn't require the consent of the other party for settlement of disputes through arbitration. That in case any dispute arises between the parties then the dispute will be settled by both the parties mutually or through mediator/arbitrator, appointed by both the parties.” Observations by the High Court: The High Court held that while the clause provided three alternative methods for dispute resolution, it also established an agreement between the parties regarding each method. However, upon analyzing Clause 5, the High Court held that the parties reached a consensus ad idem regarding the resolution of disputes, whether through mutual settlement, mediation, or arbitration. Hence, the Delhi High Court allowed the petition and referred the disputes between the parties to arbitration under the Delhi International Arbitration Centre.
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