WHETHER FILING OF STATEMENT OF DEFENCE TRANSLATES TO DEFENDANT WAIVING HIS RIGHT TO INVOKE ARBITRATION CLAUSE
An Arbitration Clause is a provision in a contract requiring parties to resolve any future disputes through a private arbitrator or panel of arbitrators, rather than through a traditional lawsuit in a court (litigation). Even where there is an ongoing lawsuit in court and a defendant has filed his statement of defence, it does not waive his right to invoke an existing arbitration clause.
It is a trite principle of law that when parties entered into a contract, they are bound by the terms and clauses contained therein. Thus, where parties agree to include an arbitration clause in their contract, such agreement is enforceable and binding on them. It is also a well-established principle of procedural law that once a claimant serves their Statement of Claim, the defendant is naturally required to file a Statement of Defense to protect their interests. However, a crucial question arises where the contract between the parties contains an arbitration clause: Does the act of filin...