1 year, 5 months ago

Differentiating Jurisprudence On Pre-Condition To Invoke Arbitration

In India, it is a common trend to incorporate a pre-condition under the arbitration agreement to follow certain conditions to invoke the dispute resolution clause. Ltd. v. DLF Commercial Complexes, the Delhi High Court emphasized upon the importance of fulfillment to fulfill the pre-condition of mutual discussion before commencing arbitration. The recent observation by the Delhi High Court in Oasis Projects Ltd. v. Managing Director, National Highway and InfrastructureDevelopment Corporation Limited, the court observed that clauses in contracts requiring parties to first attempt conciliation before resorting to arbitration are merely directory and not mandatory. In the case of Quick heal Technologies Ltd v. NCS Computech Private Ltd, the Bombay High Court emphasized the significance of differentiating between the use of "may" and "shall" in an arbitral clause. A recent case of the Delhi High Court, M/sVindhya Vasini Construction Co v. M/s Bharat Heavy Electricals Ltd, emphasized that exclusive appointment of a particular person as an arbitrator being a pre-condition in the arbitration clause, constitutes conditional acceptance of arbitration.

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