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CS Professional · Arbitration, Mediation and Conciliation · Arbitration under Investors' Grievances Redressal Mechanism of Stock Exchanges

Anita Rao sues Kavya Brokers in a civil court over a disputed trade, though their agreement has an arbitration clause. Kavya Brokers files its written statement on the merits of the claim on 5 March, and on 20 March applies for reference to arbitration. What is the position?

The application is late. The Act requires a party seeking reference to arbitration to apply not later than the date of submitting its first statement on the substance of the dispute. Kavya Brokers had already filed such a statement on 5 March.

  1. AThe judicial authority must refer the parties as the application can be made at any time before the final hearing
  2. BThe application is on time because only the first statement on the substance of the dispute by the plaintiff matters
  3. CThe application is not in time because it must be made not later than the date of submitting the first statement on the substance of the disputeCorrect
  4. DThe application is in time as long as it is made within 30 days of the written statement

Explanation

The Act requires the application to be made not later than the date of submitting the party's first statement on the substance of the dispute. Kavya filed its statement on the merits on 5 March, so the 20 March application came late. No 30-day window is given in the text.

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