Ramachandran v. Commercial Leasing Co. Ltd. and Another – sllr 2003 volume 2 page 182

In the case between Ramachandran (plaintiff) and Commercial Leasing Co. Ltd (defendant), the court addressed whether an arbitration clause in a lease agreement constituted a mere agreement to arbitrate or established a condition precedent to commencing legal proceedings. It was held that the arbitration clause in question represented only a bare agreement to arbitrate, and did not preclude the jurisdiction of the courts to hear the dispute. The principle reaffirmed was that the mere inclusion of an arbitration clause does not operate to oust the court’s jurisdiction unless clearly stated as a condition precedent. The decision relied on the timing of execution of the agreements prior to the Arbitration Act, No. 11 of 1995, and on established authorities such as Hotel Galaxy (Pvt) Ltd. v Mer