Notice required prior to referral of disputes


Delhi High Court recently held that prior notice under section 21 of the Arbitration and Conciliation Act, 1996, is mandatory before referral of disputes to arbitration and without such notice, arbitration proceedings that are commenced are unsustainable in law.

Notice required prior to referral of disputesIn Alupro Building Systems Pvt Ltd v Ozone Overseas Pvt Ltd, Bengaluru-based Alupro challenged an award passed against it under section 34 of the act before Delhi High Court. Alupro contended that it had received a notice from a person describing himself as a sole arbitrator appointed by Ozone. The person told Alupro that Ozone had initiated arbitration proceedings by filing a statement of claim before the arbitrator.

After being declared ex parte, Alupro appeared before the arbitrator and raised preliminary objections to the proceedings. The arbitrator rejected the objections and passed an arbitration award against Alupro.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at or Readers should not act on the basis of this information without seeking professional legal advice.