Observance of mediation clause not mandatory

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Delhi High Court recently held that it is not mandatory to follow an agreed upon mediation clause and reversed the judgment of a district court.

In HCL Learning Ltd v Oriental Fairfield School, para 13(a) of the agreement-cum-order (ACO) stated that if there was a dispute between the parties, arising out of the validity, interpretation, implementation or alleged breach of any ACO provision or regarding a question, including whether the termination of the ACO by one party was been legitimate. The parties would endeavour to settle such dispute amicably within fifteen days through mediation through authorized representatives. It was later mentioned that subject to clause 13(a), the parties, would submit any disputes pertaining to the ACO to the exclusive jurisdiction of New Delhi.

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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 lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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