In Brief
A hotel franchise dispute arose when Regenta Hotels sought interim court protection to prevent interference with hotel operations in Srinagar. The Karnataka High Court dismissed Regenta's appeal, holding that because Regenta filed a court petition to appoint an arbitrator over 90 days after getting interim protection, arbitration had not "commenced" within the required timeline, causing the interim order to lapse. The Supreme Court reversed this, holding that arbitral proceedings commence when the other party receives a notice invoking arbitration—not when a court petition to appoint an arbitrator is filed. Regenta's notice dated 11 April 2024 started the clock, so arbitration had commenced well within 90 days. The Court restored the interim injunction and directed expedited hearing of the arbitration petition.
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