Arbitration and Conciliation Act, 1996 – Section 11(6) and Section 7 – This case concerns an appeal against the High Court’s decision to dismiss an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator. The appellant, a healthcare institution, and the respondent, a technology company, entered into a Software Implementation Agreement containing Clause 8.28, which outlined a dispute resolution process involving negotiation, mediation, and “arbitration” between senior management.
The High Court found that Clause 8.28 was not a valid arbitration agreement, as the term “arbitration” was loosely used and the clause lacked the essential elements of a binding arbitration process, such as a neutral adjudicator and a final, binding decision. The key issue before the Supreme Court was whether Clause 8.28 constituted a valid arbitration agreement under the A&C Act.