Jharkhand HC Upholds Validity of Written Arbitration Agreements in Contract Disputes

ENA Sectors 2024-07-04 16:45:09 New Delhi, Jul 4 (KNN) In a significant ruling, the Jharkhand High Court has upheld the validity of an arbitration agreement between Tata Steel Utilities and Infrastructure Services Limited (TSUISL) and Jharkhand Urban Infrastructure Development Company Limited (JUIDCO). This ruling underscores the importance of written arbitration agreements in contract disputes and reinforces the court's role in facilitating the arbitration process when such agreements exist. In its ruling, the High Court cited that the court's primary duty under Section 11(6) is to confirm the existence of a written arbitration clause signed by both parties. The judgment, delivered by Acting Chief Justice Chandrashekhar on June 21, 2024, emphasises the court's role in verifying the existence of a written arbitration clause when considering applications under Section 11(6) of the Arbitration and Conciliation Act, 1996. He stated, In an application under section 11(6) of the Arbitration and Conciliation Act, 1996, the Court is required to see whether there is an arbitration clause which as per section 7 should be a document in writing signed by the parties. The court appointed Devendra Kumar Tiwary, IAS (Retd.), former Chief Secretary of Jharkhand, as the Arbitrator. He is directed to commence proceedings within 30 days, with Ranchi designated as the seat of arbitration. The case arose from a dispute over the Chakradharpur Urban Water Supply Scheme, a project awarded to TSUISL in 2017. TSUISL alleged delays beyond the initial completion deadline, citing factors outside its control and claiming that JUIDCO had granted extensions. The company sought arbitration to resolve issues related to site clearances, certificates, and outstanding payments totalling over Rs. 12 crore. JUIDCO contested the arbitration request, arguing that no arbitral issues existed and that TSUISL's claims should be directed to the District Mineral Foundation Trust (DMFT) instead. (KNN Bureau) 38479 https://knnindia.co.in/news/newsdetails/sectors/jharkhand-hc-upholds-validity-of-written-arbitration-agreements-in-contract-disputes 2024-07-04 16:45:09 knnindia.co.in Jharkhand HC Upholds Validity of Written Arbitration Agreements in Contract Disputes