Rajasthan HC: Arbitration Clauses Must Be Interpreted to Uphold Agreements

The Rajasthan High Court clarified that arbitration clauses should be interpreted to give full effect to arbitration agreements, even if contractual terms appear to undermine their scope. 

The Court, addressing an application under Section 11(5) of the Arbitration and Conciliation Act, 1996, appointed a sole arbitrator to resolve disputes over a canceled purchase order. 

The Court held that Clause 22(2) of the contract constituted a valid arbitration agreement, aligning with precedents and Section 11(6A). 

It emphasized that objections to the arbitration clause's validity could be raised before the arbitral tribunal. Justice Sudesh Bansal, relying on precedents, ruled the clause valid, appointing Justice D.C. Somani (Retd.) as arbitrator.