Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Pre-Requirement Of Conciliation Before Invoking Arbitration Can't Prevent Filing Of Application U/S 11 Of Arbitration Act: Delhi High Court
The Delhi High Court held that the pre-requirement of conciliation in an arbitration clause does not prevent the filing of an application under Section 11 of the Arbitration Act to appoint an arbitrator. The court clarified that while parties are encouraged to attempt conciliation, the failure to do so does not bar the initiation of arbitration proceedings. The ruling came in response to a petition seeking the appointment of an arbitrator despite the arbitration clause mandating conciliation as a preliminary step. The court emphasized that the purpose of conciliation is to facilitate dispute resolution, but it should not be used to obstruct the arbitration process. The decision reinforces the principle that arbitration agreements should be interpreted to promote efficient and fair dispute resolution.