#Dispute Resolution Clause

The Supreme Court holds that arbitration clauses using the word 'can' express possibility, not obligation, and therefore fail to satisfy the mandatory language required under Section 7 of the Arbitration and Conciliation Act, 1996. This clarifies that party autonomy demands unequivocal intent - businesses must draft arbitration clauses with 'shall' or 'must' to ensure enforceability, affecting thousands of commercial contracts with ambiguous dispute resolution language.

MP High Court rules that invoking a performance bank guarantee without first exhausting contractual dispute resolution mechanisms violates agreement terms and natural justice. The ruling reinforces that parties must adhere to prescribed contractual remedies before resorting to bank guarantee encashment, impacting construction contracts and commercial agreements.