Can a party who has terminated the contract can demand “pre-arbitration steps”?

The High Court of Delhi, in the case of Mr. Gajendra Mishra v. Pokhrama Foundation, has delivered a significant ruling on this question.

The court clarified that a party cannot demand pre-arbitration conciliation after terminating the agreement.

The dispute arose from a construction agreement with a multi-tier dispute resolution clause.

The respondent terminated the agreement without involving the Project Manager.

When the petitioner sought arbitration, the respondent objected, citing non-compliance with pre-arbitral steps.

The court, in its analysis, highlighted the respondent’s failure to refer the matter to the Project Manager before termination.

Consequently, it ruled that insistence on pre-arbitration steps post-termination is untenable.

The court rejected objections, allowing the appointment of a sole arbitrator.

This decision underscores the importance of adherence to contractual dispute resolution mechanisms and provides clarity on the impact of termination on such processes.

#arbitration #conciliation #mediation #adr #delhi #highcourt