Right to settle dispute in arbitration proceedings once waived cannot be reclaimed

Y Harish Vs Y Satish (Karnataka High Court)

Held that as per the reply notice, the petitioner has waived the right to settle the dispute in an arbitration proceedings. Accordingly, if the right is once waived it cannot be allowed to be reclaimed.

Facts-

The respondent No.1/plaintiff instituted a suit before the Commercial Court seeking a direction to the present petitioner No.1 to pay a sum of Rs.7,34,12,647/-. The present petitioners, on receipt of summons, have contested the proceedings and have filed the instant application under Order 7 Rule 11(d) read with Section 151 of CPC seeking rejection of plaint as being barred by law. The present petitioners claim that respondent No.1/plaintiff got issued a legal notice calling upon the present petitioner No.1 to resolve the dispute by way of arbitration. Therefore, the present petitioner contended that arbitral proceedings having already commenced at the instance of respondent No.1/plaintiff who has issued a notice, now cannot maintain a suit before the Commercial Court and the only recourse that is available for respondent No.1 is to file an application under Section 11 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act of 1996’) for appointment of an Arbitrator.

Conclusion-

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