Delhi HC Rules That Arbitration Clause Would Not Lose its Character Merely Because Word ‘Mediation’ Has Been Used in its Nomenclature

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Dec 31, 2022

Delhi HC Rules That Arbitration Clause Would Not Lose its Character Merely Because Word ‘Mediation’ Has Been Used in its Nomenclature

The Delhi HC in Consolidated Construction Consortium Limited v. South Delhi Municipal Corporation,^[1] while determining whether a dispute resolution clause not containing the term ‘arbitration’ at all and instead referring to ‘Mediation by Commissioner’ can be qualified as an arbitration clause, held that in the construction of a contractual clause, Courts should rely on the substance of the agreement between the parties rather than the nomenclature employed. The Delhi HC concluded that since the dispute resolution clause possessed the attributes of arbitration agreement, the same would constitute an arbitration agreement.

[1] Consolidated Construction Consortium Limited v. South Delhi Municipal Corporation, 2022 SCC OnLine Del 3607.

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