The single judge of the Delhi High Court in the case of M/s IMZ
Corporate Pvt Ltd vs MSD Telematics Pvt Ltd1 held that
if there is no intention to negotiate before referring the disputes
to arbitration, then it is not mandatory to do so even if such
negotiation is pre-requisite for initiating arbitration
proceedings.
Facts of the case:
The Petitioner and the Respondent entered into a Memorandum of
Understanding on 01st January 2020
("MOU") intending to promote their
respective business interests and profitability. It contained an
arbitration clause that required negotiation to be conducted before
commencement of the arbitration. The said arbitration clause read
as follows:
All disputes and differences, arising out of or in
connection with this Agreement shall be attempted to be resolved
mutually through negotiations between the Parties failing which
the same shall be referred and decided by a sole Arbitrator to be
appointed by the Parties. The decision of the
