SC rules no arbitration agreement exists under Section 11; preliminary check under Section 7 required before appointing arbitrator

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The SC dismissed the application under Section 11 of the Arbitration and Conciliation Act, 1996, holding that no arbitration agreement existed between the parties. The Court clarified that while exercising powers under Section 11, it must conduct a preliminary examination of the clause alleged to be an arbitration agreement to determine if it prima facie satisfies the requirements under Section 7, without conducting a full trial. Clause 13, relied upon by the appellant, was found not to constitute an arbitration agreement as it merely outlined a dispute resolution procedure with an option to seek arbitration, which was not mutually agreed upon. Clause 32, concerning jurisdiction, did not negate arbitration but was irrelevant since no arbitration agreement existed. Consequently, the High Court's rejection of the appointment of an arbitrator was affirmed, and the appeal was dismissed.....