Termination of Agreement does’nt lead to Termination of Arbitration Clause- Karnataka High Court

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October 12, 2018

In the case, the High Court of Karnataka brushed aside Respondent University’s contention that as the Agreement between the parties had been terminated, the arbitration clause would not survive.

Case name: M/s SCOPE v. Karnataka State Open University

According to the impugned clause all the disputes arising out of the agreement were to be settled through mutual consultation and in case of settlement not coming through the dispute would fall under the purview of the Arbitration and Conciliation Act, 1996.

The Petitioner in the case had issued notice for appointment of arbitrator, however the respondent university did not take any steps for appointment of arbitrator as required by the arbitration agreement.

The High Court of Karnataka thus held that termination of agreement did not terminate the arbitration clause and directed that the adjudicator shall decide all the dispute between the parties and claims and objection relating to the agreement in question.

The entire case can be accessed here.

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