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 clarified that filing an application under Section 8 of the Arbitration and Conciliation Act before submitting the first statement on the substance of the dispute does not amount to waiving the right to invoke an arbitration clause. The petitioner argued that the respondent's action constituted a waiver. The court disagreed, emphasizing that the statutory right to arbitration is preserved unless there is specific conduct indicating a clear intent to waive it. This decision reaffirms the importance of adhering to procedural requirements under the Arbitration Act while safeguarding parties' rights to arbitrate disputes. It also promotes the use of arbitration as a preferred mode of dispute resolution.