Dalip Singh Vs. Jaswant Rai Garg (Neutral Citation: 2024:DHC:5048) - (High Court of Delhi) (08 Jul 2024)

When the arbitration clause envisages a pre-arbitration protocol, the protocol has to be adhered to, before invoking arbitration

MANU/DE/4483/2024

Arbitration

Present is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 for resolution of the disputes between the parties through arbitration.

Clause 22 envisages a specific pre-arbitration protocol. The parties are required to make an attempt to amicably resolve the dispute. It is only if the dispute cannot be resolved within 21 days or any extended period, that a Section 21 notice can be served invoking arbitration.

Appellant has not been able to show any document whereunder there was an attempt to amicably resolve the dispute in the terms envisaged by Clause 22. He referred to notice dated 16 May 2024. This, however, is a formal legal notice making allegations against the respondent and does not contain even a vestige of an attempt to settle the matter amicably.

It is well settled that where the arbitration clause envisages a pre-arbitration protocol, the protocol has to be adhered to, before invoking arbitration, unless emergent circumstances can be shown which render adherence to the protocol counter-productive.

Petition is premature, reserving liberty to the Petitioner to proceed in accordance with the protocol envisaged by Clause 22 of the Consultancy and Retainership Agreement. Petition disposed off accordingly.

Tags : DISPUTE RESOLUTION CLAUSE