If Original Agreement Contains Arbitration Clause, Subsequent Agreement Extending Just Validity Need Not To Have A Separate Arbitration Clause: Calcutta High Court

The High Court of Calcutta has held that a subsequent agreement entered into between the parties need not contain a separate arbitration clause if it is made only to extend the validity of the original agreement that contained an arbitration clause. The Court further held that the arbitration clause contained in the original agreement would not come to an end due to efflux of time merely because the subsequent agreement does not have an arbitration clause. Analysis By The Court The Court held that a subsequent agreement entered into between the parties need not contain a separate arbitration clause if it is made only to extend the validity of the original agreement that contained an arbitration clause. The Court held that if the new agreement provides for a specific reference to the terms of the earlier agreement and does not contain any clause other than the extension of the validity of the original agreement then there is no requirement to have an arbitration clause in the new agreement.