Notice Under Section 21 Is Mandatory Before Referring The Disputes To Arbitration

Object of Section 21 of The Arbitration and Conciliation Act 1996

The Delhi High Court in a recent judgment dated February 28, 2017, delivered by Justice S. Murlidhar in Alupro Buildings Systems Pvt Ltd Vs. Ozone Overseas Pvt Ltd, has given a much needed interpretation and clarity to the object and purpose of issuing the notice under Section 21 of the Arbitration and Conciliation Act (hereinafter referred to as the Act) holding that the provisions under Section 21 of the Act are mandatory in nature and cannot be dispensed with and forms the preceding act in initiation and reference of the disputes between the parties . It was further held that the provisions of Section 21 are not limited only for the purpose of determining limitation and a party cannot straight away file a claim before the Arbitrator without issuing the notice under Section 21 of the Arbitration and Conciliation Act.