Arbitration Clause Cannot Be Considered A Binding Arbitration Agreement If Mandatory Arbitration Reference Is Missing: Calcutta HC

The Calcutta High Court held that an arbitration clause cannot be considered binding, and arbitration cannot be referred if a mandatory arbitration agreement is missing. The court emphasized that the existence of a valid and legally enforceable arbitration agreement between the parties is a prerequisite for invoking the arbitration clause. Without a clear consensus and a properly executed agreement to submit disputes to arbitration, the clause itself lacks the necessary legal foundation to compel arbitration. This ruling underscores the fundamental requirement of a valid arbitration agreement for the arbitration process to commence and be legally binding on the parties involved in a dispute.