Once The Right to Refer the Dispute to Arbitration Is Waived by A Party, It Cannot Be Reclaimed: Karnataka High Court

[18 July 2022] The Karnataka High Court has ruled that if a party has disputed the arbitrability of a dispute raised by the opposite party, in its reply to the notice invoking the arbitration clause, it is deemed to have waived its right to seek the reference of the dispute to arbitration. The Court added that if a right is once waived by a party, it cannot be allowed to be reclaimed and hence, the party cannot be permitted to contend that the suit instituted by the opposite party before the Commercial Court was barred by law.

The Single Bench of Justice Sachin Shankar Magadum held that the right of the party to refer the dispute to arbitration cannot be kept in the sleeve and be used at will.