Arbitration dispute can arise without final termination order, allowing Section 9 interim relief before arbitration

A dispute under the Arbitration and Conciliation Act, 1996 arises when one party asserts a claim and the other party denies it; a formal final termination order is not necessary. Here, a show cause notice alleging dealership lapses was answered by a denial, a request for withdrawal, and a personal hearing, which was sufficient to constitute a dispute between the parties. That dispute entitled the respondent to seek interim relief under Section 9 before commencement of arbitration, and no jurisdictional error was shown in the impugned order.

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Issues: Whether a dispute had arisen between the parties, despite no final termination order having been passed, so as to enable the respondent to invoke Section 9 of the Arbitration and Conciliation Act, 1996.

Analysis: The expression "dispute" is not defined in the Act, and its ordinary meaning was applied. A dispute was held to arise when one party asserts a claim and the other party refutes it; a formal final order is not essential for the existence of a dispute. On the facts, the show cause notice alleging lapses in the dealership was met by a reply and personal hearing in which the respondent denied the allegations and sought withdrawal of the notice. That assertion and denial was sufficient to constitute a dispute under the dealership arrangement and to permit recourse to Section 9 before commencement of arbitral proceedings.

Conclusion: The respondent was entitled to invoke Section 9 of the Arbitration and Conciliation Act, 1996, and no jurisdictional error was shown in the order under challenge. The appeal failed.

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