Filing Application U/S 8 Of Arbitration Act Before Statement On Substance Of Dispute Doesn't Waive Right To Invoke Arbitration Clause: Karnataka HC
The Karnataka High Court bench of Justice H.P. The court observed that the filing of the written statement and application for reference under Section 8 simultaneously cannot lead to an inference that the Appellant had submitted to the jurisdiction of the Civil Court and had waived its right to seek reference to arbitration. The Trial Court held that under Section 8, a party must invoke arbitration no later than the date of submitting its statement on the substance of the dispute. In these judgments, the Court held that the term 'not later than' used in Section 8 of the Act permits the filing of an application seeking reference of the parties along the written statement and the filing of the written statement and application for reference under Section 8 simultaneously cannot lead to an inference that the Appellant had submitted to the jurisdiction of the Civil Court and had waived its right to seek for reference to arbitration under Section 8. The court observed that if an application under Section 8 is filed before submitting the first statement on the substance of the dispute, the party cannot be deemed to have waived its right to invoke the arbitration clause.
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