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CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Ravi Constructions was sued by Meera Developers in a civil court in Pune. Ravi Constructions first filed a written statement contesting the claim on merits, and two months later applied under Section 8 for reference to arbitration based on a clause in the contract. What is the likely position?

The application is barred. Section 8(1) requires a party to apply for reference not later than the date of submitting its first statement on the substance of the dispute. Ravi Constructions filed a merits written statement first, so the later application comes too late.

  1. AThe application is on time because it can be made any time before the decree
  2. BThe application is barred because it was not made by the date of submitting the first statement on the substance of the disputeCorrect
  3. CThe application is valid only if Meera Developers consents
  4. DThe application is valid if it is made within thirty days of the written statement

Explanation

Section 8(1) requires the application not later than the date of submitting the first statement on the substance of the dispute. The written statement on merits was that statement, so the later application is out of time. The 'before decree' and thirty-day options have no basis in the text.

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