Arbitral Tribunal’s Order Rejecting Party’s Request To File Counter Claims On Ground Of Delay, Doesn’t Foreclose Its Right To Invoke Arbitration: Delhi High Court
The Delhi High Court has ruled that the Arbitral Tribunal’s order rejecting a party’s request to file counter claims on the ground of delay, does not foreclose its right to invoke arbitration seeking independent reference of its claims. In a petition filed by the respondent under Section 11 of the Arbitration and Conciliation Act, 1996 before the Delhi High Court, the Court appointed a Sole Arbitrator and referred the parties to arbitration. The petitioner, thereafter, served a fresh notice on the respondent, invoking the arbitration clause, for adjudication of its claims under the Agreement, and filed a petition under Section 11 of the A&C Act before the Delhi High Court seeking appointment of an Arbitrator. P. 474/2019 so implied.” The Court added: “Of course, when arbitration proceedings are invoked at the instance of one party, it is generally open to the other party to file its counter-claims in the same proceedings, but this does not per se signify that the Court has referred the claims of the prospective counter-claimant, so as to bar its right to assert its claims at a future date.” Concluding that the arbitral reference made in the Section 11 petition filed by the respondent, was only in respect of the respondent’s claims, the Court ruled that Section 25 of the A&C Act was not applicable to the case.
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