01 October 2021, Friday

2 years ago

Follow the pre-arbitral conciliation before seeking appointment of the arbitrator: Delhi High Court

1 October 2021 | Sanjay Iron and Steel Limited v. Steel Authority of India | Arb. P. 408 of 2021 | Delhi High Court | Suresh Kumar Kait J | 2021 SCC OnLine Del 4566

A clause in an agreement required the parties to explore conciliation as a pre-arbitral step. In an application filed for appointing an arbitrator, the Delhi High Court directed the parties to conciliate before applying for appointment. It said that “the very purpose of keeping a conciliation clause in any Agreement is to shorten the path for settlement of disputes between the parties. Therefore, parties in the present petition are directed to first explore possibility of resolution of disputes through Conciliation in terms spelt out in Clause-10 of the Agreement.”

The court also set a timeline for the parties to conclude that process.

Read the judgment here.


connect with us: