Arbitration In IndiaSection 11 application for appointment of Arbitrator can be filed even after withdrawal of application before MSMED Council

In the case of Smartschool Education Private Limited v. Bada Business Pvt. Ltd And Ors., ARB.P. 1178/2024, the Hon’ble Delhi High Court has held that a Section 11 application for appointment of Arbitrator can be filed even after withdrawal of application before the MSMED Council.

The Court observed,

This Court is of the opinion that Clause 11.2.2 of the agreement contains an arbitration clause which provides that the seat of arbitration shall be at New Delhi. The Petitioner issued notice dated 02.03.2023 followed by another notice dated 30.05.2024 invoking arbitration. The Respondent has chosen to deny its liability and therefore there is no question of making any attempt to settle the disputes amicably. The Petitioner has therefore approached this Court for appointment of arbitration and this Court has issued notice in the matter on 05.08.2024. Admittedly, the Petitioner had approached the MSMED Council but the Petitioner has withdrawn from the MSMED Council vide Letter dated 18.07.2024 and the fact that there is no correspondence from the MSMED Council accepting the withdrawal does not mean that the Petitioner cannot approach this Court under Section 11 of the Arbitration & Conciliation Act.

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