Delhi HC: Existence of an Arbitration Clause in a Contract Does not Bar the Jurisdiction of Civil Courts

The Delhi High Court ruled that the existence of an arbitration clause in a contract does not bar the jurisdiction of civil courts unless a valid and timely application under Section 8 of the Arbitration and Conciliation Act has been filed by the parties. 

The Court held that an application under Order VII Rule 11 CPC (seeking rejection of the plaint) cannot substitute a Section 8 application, and Section 8 does not empower the Court to reject a plaint.

The Court clarified that procedural defects in board resolutions are curable and do not affect the jurisdiction of civil Courts.  The court also noted that the petitioner failed to justify the delay in filing the written statement.