Opt-Out Clauses – Indian Courts Continue To Shun Unilateral Arbitration Agreements: ELP Analysis

The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy..ELP Update.Recently, in Tata Capital Housing Finance Ltd v Shri Chand Construction and Apartment Pvt Ltd., the Delhi High Court has held that unilateral opt-out clauses (clauses that grant unilateral right to one party to give a go-bye to arbitration) cannot amount to a valid arbitration agreement since the clause lacks an essential element of an arbitration agreement, i.e., 'mutuality,' in as much as, the clause only gives one party, the right to walk out of arbitration.The Delhi High Court has further held that under section 7 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), the parties are not at liberty to split the claims which arise out of the same defined legal relationship, i.e., there cannot be a valid arbitration clause providing for arbitration of claims of one party and providing for the remedy of the court/any other fora for the claim of the other party..Click on the attachment to read the full report & analysis:.DISCLAIMERThis alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Opt-Out Clauses – Indian Courts Continue To Shun Unilateral Arbitration Agreements: ELP Analysis

Opt-Out Clauses – Indian Courts Continue To Shun Unilateral Arbitration Agreements: ELP Analysis

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