Settlement Arising From Contract Containing Arbitration Clause Must Be Resolved Through Arbitration: Karnataka High Court

The Karnataka High Court recently addressed the issue of whether a settlement arising from a contract containing an arbitration clause should be resolved through arbitration. The court ruled that if a contract includes an arbitration clause, disputes arising from it should be settled through arbitration, regardless of whether the parties have reached a settlement. This decision reinforces the principle that arbitration clauses in contracts must be adhered to, ensuring disputes are resolved according to the agreed-upon method, even if the parties agree to a settlement outside of arbitration.