Composite Reference Of Disputes From Distinct Purchase Orders To Arbitration Is Valid When Parties' Conduct Indicates Single Transaction: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that a composite reference of disputes to arbitration arising out of distinct purchase and service orders can be made when the conduct of the parties demonstrates that they were all part of a single business transaction. It was also argued that the respondent failed and neglected to pay the legitimate demand of the petitioner and illegally terminated the purchase and service orders, which gave rise to a dispute between the parties. Ultimately, the respondent terminated all purchase and service orders via a single notice issued on June 14, 2024. The court further observed that a composite invocation under 21 of the Arbitration Act for the consolidated claim of the petitioner regarding purchase and service orders as well as the challenge to their termination by the respondent was valid.