Supreme Court strikes down clause mandating payment of deposit as pre-condition to invoking arbitration:Interesting Read
Supreme Court strikes down clause mandating payment of deposit as pre-condition to invoking arbitration The Supreme Court, in its recent judgment in ICOMM Tele Ltd. v Punjab State Water Supply and Sewerage Board & Anr., delivered on 11 March 2019, has ruled on the validity of an arbitral clause mandating deposit of a certain percentage of the claim amount as a pre-condition for initiating arbitration. FACTS In 2008, the Punjab State Water Supply and Sewerage Board (First Respondent) issued a notice for tender for the extension and augmentation of water supply, sewerage scheme, pumping station and sewerage treatment plant for various towns. ICOMM Tele Ltd. (Appellant) successfully contested for the same and on 16 January 2009, a formal contract was entered into between the Appellant and the Executive Engineer, Punjab State Water Supply and Sewerage (Second Respondent), which contract incorporated the notice for tender. The notice for tender contained...