Arbitration Clause From Another Contract Can Be Incorporated Into Contract Only By Specific Reference: Delhi High Court
4 months, 1 week ago

Arbitration Clause From Another Contract Can Be Incorporated Into Contract Only By Specific Reference: Delhi High Court

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The Delhi High Court bench of Justice Subramonium Prasad affirmed that the arbitration clause from another contract can be incorporated into the contract when there is a clear intention that arbitration clause contained in another contract would also be incorporated in the contract by which the disputes would be resolved. Brief Facts The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 by the Petitioner seeking appointment of an Arbitrator to adjudicate upon the disputes which have arisen between the parties under the Master Services Agreement dated 19.08.2019 wherein the Petitioner undertook offsite work for the Respondent by deputing its employees who are software developers to work in the project of the Respondent. Since the Statement of Work becomes an integral part of the Master Service Agreement, the Arbitration Clause contains that the Master Service Agreement will automatically become the part of the Statement of Work Agreement. The court noted that in M. R Engineers and Contractors Ltd. v. Som Datt Builders Ltd., the Supreme Court has held that when the parties enter into a contract, making a general reference to another contract, such general reference would not have the effect of incorporating the arbitration clause from the referred document into the contract between the parties. The court while applying the above law to the facts of the present case observed that the Statement of Work Agreement is a part of the Master Service Agreement therefore the Arbitration Clause 14 contained in the Master Services Agreement dated 19.08.2019 becomes the part of the Statement of Work Agreement.

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History of this topic

Court Allows Composite Arbitral Proceedings for Two Contracts Intertwined Through a Common Property
4 months, 3 weeks ago

Court Allows Composite Arbitral Proceedings for Two Contracts Intertwined Through a Common Property

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The Calcutta High Court has allowed a composite reference of two contracts to be made in a dispute between a company and its wife regarding a property. The court held that when two or more contracts are so intertwined with each other so as to prejudice the parties, a composite reference should be made to a single arbitration agreement to …

Successive References Under One Arbitration Agreement: Possible Or Not?
11 months ago

Successive References Under One Arbitration Agreement: Possible Or Not?

Live Law  

While the answer to the topic lies in the intricate details of individual contracts and/or arbitration agreements entered into between parties, the Arbitration and Conciliation Act, 1996 permits successive references under one arbitration agreement. While these successive references may be appealing to the parties involved, such proceedings are bound to, lead to multiplicity of arbitration proceedings before multiple tribunals, with …

General Reference Won't Have Effect Of Incorporating Arbitration Clause In Another Contract, Specific Reference Needed : Supreme Court
1 year ago

General Reference Won't Have Effect Of Incorporating Arbitration Clause In Another Contract, Specific Reference Needed : Supreme Court

Live Law  

The Supreme Court reiterated that a dispute cannot be referred to arbitration based on the arbitration clause contained in another contract unless a specific reference was made in the main contract to incorporate the arbitration clause into the main contract. Rejecting such an approach of the High Court, the Supreme Court held that the High Court erred in concluding that …

Court May Decline To Refer Parties To Arbitration If Dispute Doesn’t Correlate To Arbitration Agreement: Delhi High Court Reiterates
1 year, 11 months ago

Court May Decline To Refer Parties To Arbitration If Dispute Doesn’t Correlate To Arbitration Agreement: Delhi High Court Reiterates

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The Delhi High Court has reiterated that mere existence of an arbitration agreement or arbitration clause would not be sufficient to refer the parties to arbitration and that even in the presence of an arbitration agreement, the court may decline to refer the parties to arbitration if the dispute does not correlate to the said agreement. The bench of Justice …

Clarification Sought By Arbitrator On Other Matters, Won’t Make Them Subject Of Arbitral Proceedings: Delhi High Court
2 years, 1 month ago

Clarification Sought By Arbitrator On Other Matters, Won’t Make Them Subject Of Arbitral Proceedings: Delhi High Court

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The Delhi High Court has ruled that information and clarification sought by the Arbitral Tribunal on matters and dispute arising under other contracts, which do not form a part of the arbitral reference, will not alone make them the subject of arbitral proceedings. The petitioner, University of Delhi, filed a petition under Section 34 of the A&C Act before the …

PO, Though Not Having Arbitartion Clause, Intrinsically Linked To Main Agreement, Dispute Arbitrable: Delhi High Court
2 years, 2 months ago

PO, Though Not Having Arbitartion Clause, Intrinsically Linked To Main Agreement, Dispute Arbitrable: Delhi High Court

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The Delhi High Court has ruled that the parties would be governed by the arbitration clause contained in the Contract, even though the arbitration clause is not specifically incorporated in the purchase orders. Thus, the Court concluded that the parties would be governed by the arbitration clause contained in the Contract, even though an arbitration clause was not specifically incorporated …

Arbitration Clause In The Annexure To The Agreement Would Be Binding On The Parties: Delhi High Court
2 years, 7 months ago

Arbitration Clause In The Annexure To The Agreement Would Be Binding On The Parties: Delhi High Court

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The High Court of Delhi has held that an arbitration clause contained in the annexure to the main agreement would be binding on the parties to that agreement. Analysis By The Court The Court held that the agreement between the parties apparently makes a reference to the annexure which contains an arbitration clause, therefore, the argument of the responden that …

Arbitration Clause Can Be Invoked Against Disputes Under Another Agreement, If Both Agreements Form One Composite Transaction: Karnataka High Court
2 years, 8 months ago

Arbitration Clause Can Be Invoked Against Disputes Under Another Agreement, If Both Agreements Form One Composite Transaction: Karnataka High Court

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The Karnataka High Court has ruled that a party can invoke the Arbitration Clause contained in an agreement with respect to the disputes arising with a third party under another agreement, if both the agreements refer to each other and form one composite transaction. The petitioner M/s Bestpay Solutions Private Limited submitted before the High Court that the respondent in …

Supplementary Agreement Rescinding Arbitration Clause; Whether Agreement Contrary To Law, To Be Decided By Arbitrator: Delhi High Court
2 years, 10 months ago

Supplementary Agreement Rescinding Arbitration Clause; Whether Agreement Contrary To Law, To Be Decided By Arbitrator: Delhi High Court

Live Law  

The Delhi High Court has held that whether a supplementary agreement between the parties, rescinding the arbitration clause contained in the principal contract, is contrary to law or not in view of taking away the right of a party to invoke arbitration, is required to be decided by the arbitrator himself. The respondent added that the said supplementary agreement specifically …

Mere Use Of Word 'Arbitration' In Agreement Clause Heading Would Not Infer Existence Of Agreement Between Parties To Resolve Disputes Through Arbitration: Delhi HC
3 years ago

Mere Use Of Word 'Arbitration' In Agreement Clause Heading Would Not Infer Existence Of Agreement Between Parties To Resolve Disputes Through Arbitration: Delhi HC

Live Law  

The Delhi High Court has observed that the mere use of word 'Arbitration' in the heading in the Clause of Agreement would not lead to the inference that there exists an agreement between such parties seeking resolution of disputes through arbitration.Justice Mukta Gupta referred to a 2014 decision of the Delhi High Court in Avant Garde Clean Room & Engg. …

Arbitration Court Reckoner : June & July 2021
3 years, 6 months ago

Arbitration Court Reckoner : June & July 2021

Live Law  

By way of the present column, an attempt is made to briefly review the salutary judgments pronounced by the Courts in the months of June & July 2021 under the Arbitration & Conciliation Act, 1996. Section 7 Non-filing of any reply/objection despite service of notice of S. 11 petition would constitute acceptance of existence of arbitration agreement In Swastik Pipe …

Amendment In Arbitration Act Will Not Lead To Reconstituting The Pre-existing Tribunals: Delhi HC [Read Judgment]
5 years, 7 months ago

Amendment In Arbitration Act Will Not Lead To Reconstituting The Pre-existing Tribunals: Delhi HC [Read Judgment]

Live Law  

Delhi High Court has held that there's no need to reconstitute Arbitral Tribunals existing since prior to 2015 just because the Amendment Act was brought in the same year. In the present case, the Petitioners had asked the court to issue directions to the Respondents to constitute a new arbitral tribunal and conduct the arbitration as per the Arbitration and …

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