Hitech Competent Builders Pvt. Ltd. vs. Engineering Projects (India) Limited & Anr.
Background
The petitioner sought appointment of an arbitrator, but on scrutiny of the contract, both sides agreed that its dispute-resolution clause required the parties to first attempt conciliation before arbitration could be invoked.
Decision Breakdown
Since the contractual pre-condition of conciliation had not yet been attempted, the petitioner sought leave to withdraw the arbitrator-appointment petition, with liberty to return to court later if needed. The Court granted this leave and dismissed the petition as withdrawn, leaving the parties free to pursue conciliation as required by their contract.
Lesson Learnt
Before rushing to court for an arbitrator, parties must check whether their contract requires a mandatory pre-arbitration step like conciliation or negotiation, skipping it can mean the court petition itself is premature.