On May 26, 2025, the Delhi High Court, presided over by Justice Jasmeet Singh, clarified that there is no fixed format required for issuing a notice under Section 21 of the Arbitration and Conciliation Act, 1996. The essential criterion is that the notice must clearly express the intention to resolve disputes through arbitration.

No Prescribed Format: The court emphasized that while there is no mandated structure for such notices, they must unequivocally state the disputes and the intent to initiate arbitration if unresolved.

Case Background: The dispute arose from a Tripartite Agreement dated November 23, 2010, wherein the petitioners provided financial assistance to the respondent’s project. Upon the respondent’s failure to commercialize the technology and make royalty payments, the petitioners sought arbitration for damages.

Respondent’s Argument: The respondent contended that the letter dated April 5, 2024, was merely a demand and not a formal arbitration notice.

Court’s Observation: Referencing the Supreme Court’s decision in Aslam Ismail Khan Deshmukh v. ASAP Fluids Pvt. Ltd., the court held that as long as the notice outlines the disputes and indicates an intention to arbitrate, it satisfies the requirements of Section 21.

This ruling underscores the importance of the content over the form in arbitration notices, emphasizing clear communication of intent to arbitrate rather than adherence to a specific format.

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