If No Bonafide Negotiations Occur After Arbitration Notice, Period Cannot Be Excluded From Limitation: Delhi High Court

The Delhi High Court has clarified the application of the limitation period for filing petitions for the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act. The court ruled that the limitation period will not be excluded or extended if, following the issuance of an arbitration notice, the parties involved did not engage in bona fide (genuine and good faith) negotiations to resolve the dispute. This decision underscores the need for parties to actively attempt dispute resolution after an arbitration notice. Mere exchange of notices without genuine negotiation will not justify an extension of the statutory period for seeking judicial intervention to appoint an arbitrator.