The Madhya Pradesh High Court held that the word “may” in an arbitration clause does not make arbitration optional. Justice Deepak Khot ruled that parties’ intention must be examined from the agreement as a whole, allowing appointment of an arbitrator under Section 11(6).
The Supreme Court of India criticized the poor drafting of arbitration clauses in commercial agreements, noting that they complicate and delay dispute resolution instead of facilitating it. The Court urged a stricter approach to dismiss poorly written clauses, emphasizing the need for clarity to restore arbitration’s intended purpose of quick and effective dispute resolution.
Chief Justice D.Y. Chandrachud highlights arbitration as the preferred method for resolving commercial disputes, emphasizing its efficiency over courts burdened with millions of cases. He advocates for a balanced approach, where courts intervene when necessary to prevent injustice. The UK Supreme Court event symbolizes respect and solidarity between judiciaries. Chandrachud calls for a culture of commercial arbitration in India.
