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The Supreme Court in the matter of Regenta Hotels Private Limited v. Hotel Grand Centre Point & Ors.,1 through its judgment dated 07.01.2026 held that arbitral proceedings commence for all statutory purposes on the date the opposite party receives a Notice Invoking Arbitration ("NIA") under Section 21 of the Arbitration and Conciliation Act, 1996 ("A&C Act") and not on the date of appointment of an arbitrator or filing of a petition under Section 11 of the A&C Act. It held that the statutory consequences flowing from commencement of arbitration, including compliance with the mandate under Section 9(2), must be assessed solely with reference to Section 21 of the A&C Act. Treating the filing of a petition under Section 11 of the A&C Act as the trigger for commencement would be contrary to its text, scheme, and object, undermining the efficacy of interim protection granted under Section 9 thereof.
The Supreme Court held that Section 21 of the A&C Act defines commencement of arbitration as a statutory event triggered by the receipt of a request to refer the disputes to arbitration. Furthermore, the expressions initiated in Rule 9(4) of Rule 9 of the Arbitration (Proceedings Before the Courts) Rules, 2001 and commenced in Section 9(2) must be read harmoniously with Section 21 of the A&C Act, failing which the statutory framework would be rendered incoherent.
Footnote
1. SLP(C) 30212 of 2024.
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