In the contemporary and rapidly evolving commercial landscape,
arbitration presents an expedited and confidential mechanism for
the resolution of disputes. This process enables enterprises to
avoid long judicial battles and concentrate on their core
operations. Nevertheless, a recent ruling by the Supreme Court of
India in M/S Alchemist Hospitals Ltd. v. M/s ICT Health
Technology Services India Pvt. Ltd.1
illustrates that merely incorporating the term
"arbitration" into a contractual agreement is
insufficient. The apex court affirmed that good faith isn't
good enough and the stipulation must unequivocally show the genuine
intent of both parties to engage in a binding arbitral procedure.
This judgment serves as an essential reference for businesses. It
illuminates the requisite elements for drafting agreements that
facilitate the intended efficacy of arbitration, particularly in
accordance with the Arbitration and Conciliation Act, 1996 (A&C
Act).
