Once Right To File Written Statement Is Closed, Application U/S 8 Of Arbitration Act Can't Be Entertained: Delhi High Court

The Delhi High Court has clarified a crucial procedural point in civil litigation involving arbitration, ruling that an application to refer a dispute to arbitration under Section 8 of the Arbitration Act cannot be entertained once the court has closed the party's right to file a written statement. The court held that the application to refer to arbitration must be made at the earliest possible opportunity, and certainly no later than the date of submitting the first statement on the substance of the dispute. Once the defendant forfeits their right to file a written statement due to delay, they are deemed to have submitted to the court's jurisdiction. Allowing an arbitration application after this stage would be contrary to the legislative intent, which is to ensure that the choice between litigation and arbitration is made at the very beginning of the legal proceedings.