Once Right To File Written Statement Is Closed, Section 8 Arbitration Act Application Not Maintainable: Delhi High Court
In a recent judgment, the Delhi High Court has clarified an important legal position regarding arbitration proceedings in civil disputes. The Court held that once the right to file a written statement is closed , the defendant cannot later seek reference to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 . Fact of the case In a commercial dispute pending before a civil court, the defendant failed to submit a written statement (WS) within the time frame allowed under the Code of Civil Procedure (CPC) . After the deadline passed and the court closed the defendant’s right to file the WS, the defendant filed an application under Section 8 of the Arbitration Act , requesting that the matter be referred to arbitration, citing an arbitration clause in the contract. Court’s Reasoning: The Delhi High Court, while rejecting the application, made it clear that: Section 8 of the Arbitration Act allows a party to request reference t...