In Case Of Ambiguity In Arbitration Agreement, Business Efficacy Test May Be Used To Determine Parties’ Intent: Bombay High Court

In a significant ruling, the Bombay High Court has provided clarity on resolving ambiguities in arbitration provisions under the Arbitration and Conciliation Act, 1996. The court emphasized the application of the business efficacy test when an agreement is unclear on the parties' intent to arbitrate. Case Background: The dispute arises from a Hotel Franchisee and Management Agreement ("Resort Management Agreement") executed on February 10, 2021 between the Petitioner-Applicant, Lords Inn…