Arbitration and Conciliation Act, 1996—Section 11(6)—Arbitration Clause—Existence of—Agreement between the SDMC and the SMS AAMW to determine whether it constituted an arbitration clause—It found that the clause was described as an appeal and did not provide for dispute resolution through arbitration—Instead, it vested authority in the Competent Officer and the Commissioner to oversee work execution and prevent disputes, indicating that it was not intended as an arbitration clause—Therefore, the court concluded that appointing an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 was not appropriate in this case. ...

Arbitration Act, 1940, Section 20 — Arbitration — Arbitration clause — Award — It is found that claim was entertained by the learned arbitrator on the basis of provisions in the contract entered into between HSCL and the respondent and said provisions were not made applicable in the contract which was entered into between the appellant and the respondent — Held that the approach of the learned arbitrator is clearly perverse in justifying the claim on the basis of provisions which were not even applicable — Whether contract entered into between the HSCL and the respondent governed the relationship between the appellant and the respondent was a fundamental and jurisdictional issue and such an exercise is permissible by the Court while examining the validity of an award — Undertaking this exercise di...

Arbitration and Conciliation Act, 1996 — Section 11 — Clause 27 — Arbitration clause — In view of the stand alone arbitration clause, clause 27, parties entitled to invoke arbitration even after cancellation of MoU providing for arbitration. (Para 31) ...

Contract Act, 1872—Section 62—Arbitration and Conciliation Act, 1996—Section 16(1), Section 8, Section 8(1)—In cases where a contract is superseded by another, the arbitration clause, being integral to the original contract, ceases to apply—However, if a contract is terminated due to breach, the arbitration clause survives for resolving disputes related to the contract—An accord and satisfaction, despite ending the contract, does not nullify the arbitration clause—When the prerequisites under Section 8 are met, the court is obligated to refer parties to arbitration—Once these conditions are fulfilled, the court has no discretion and must enforce the arbitration clause for dispute resolution. ...

Arbitration and Conciliation Act, 1996—Section 11, Section 6, Section 6(2), Section 7, Section 7(5)—Addressing whether an arbitration clause in a main contract can be incorporated into a sub-contract—The Public Works Department (PW Department) contracted the respondent for a project, and the appellant became a sub-contractor to the respondent—The sub-contract stated it would be carried out "on the terms and conditions as applicable to the main contract." Disputes arose, and the appellant sought arbitration based on the arbitration clause in the main contract—The court considered Section 7(5) and concluded that for the arbitration clause to be incorporated, there must be a conscious acceptance by the parties, clarifying the specific reference required—The appeal was dismissed. ...

Arbitration Act, 1940—Section 20—Invocation of an arbitration clause is permissible even after the completion of rights and obligations under a contract—A contract doesn't terminate for the purpose of dispute resolution when parties' rights and obligations are settled—Contractors, especially those with substantial investments, often require payment under bills to meet financial obligations—Public sector undertakings may withhold payment until a 'No Demand Certificate' is signed—The context of correspondence marked as 'without prejudice' varies and should be interpreted accordingly in different situations—Each case must be examined based on its unique circumstances—The decision highlights the practical considerations and realities of commercial contracts and arbitratio...

Contract Act, 1872—Section 10—Government contract—Arbitration clause—Division Bench's decision setting aside an arbitration award—The contract included an arbitration clause, and a subsequent amendment mandated reasoned awards if claims exceeded Rs. 1 lakh—The Division Bench relied on this amendment, applying it retroactively and remitting the award for a reasoned decision—The Supreme Court, however, clarified that the appellant's acceptance letter only bound them to the terms in force at the contract's initiation in 1985—The amendment, effective from 3.10.1986, wasn't applicable—Moreover, the respondents failed to raise the issue before the arbitrator, making it untenable at the appellate stage—The appeal was allowed, restoring the Single Judge's decision uph...

Arbitration And Conciliation Act, 1996—Section 7—Issue at hand involves the determination of whether the arbitration clause in a Charter Party Agreement was incorporated by reference into the Bill of Lading—The court emphasized that the primary document for consideration is the Bill of Lading, and the intention of the parties should be ascertained based on the incorporation clause of the Bill of Lading.The court highlighted the importance of giving effect to the intention of the parties and avoiding a literal or technical reading of the clause that could invalidate or frustrate it—If the arbitration clause in the Charter Party Agreement is incorporated into the Bill of Lading without leading to inconsistency or absurdity, the court should give effect to the parties' intention, making the arbitration clause bind...

Arbitration Act, 1940—Interpretation of 'final claims' in arbitration clause—The term 'final claims' in the arbitration clause, requiring a contractor to demand arbitration after presenting such claims on disputed matters, signifies claims that are definite, certain, and crystallized—The clause encompasses claims arising during or after the contract's termination, not limited to those related to final bills—Crucially, the claims must not be in a fluid state, and the contractor must not view them as tentative or subject to future revision—The word 'final' in the clause holds significance, indicating that claims presented should be firm and conclusive—Contractors treating claims as non-final and subject to revision cannot expect authorities' response, risking the forfeiture...

Arbitration Act, 1940—Section 2(a)—Arbitration clause—Presented a disagreement on payments and contract work—The appellant sought arbitration under Section 8 of the Indian Arbitration Act, proposing an independent arbitrator instead of the Managing Director—Despite the court's initial approval, the High Court reversed the decision, asserting that Section 8 clauses were not applicable—The key debate centered on Clauses 23 and 24, designating final decision authority to the Executive Engineer and Managing Director, respectively—The court emphasized that these clauses did not imply a comprehensive arbitration process but rather resembled expert determinations—Drawing parallels with prior cases, the court concluded that the Managing Director's role was administrative, dismissing the appe...

Arbitration Act, 1940—Section 11, Section 12, Section 3, Section 5—An appeal against an order of the Andhra Pradesh High Court, which held that an original agreement lacking an arbitration clause prevails over a copy containing one—The appellant, a Class I Contractor, sought arbitration over disputes arising from a construction contract with the respondent corporation—Despite a copy of the agreement indicating arbitration, the High Court ruled that only the signed agreement's terms were binding—The respondent cited a policy decision to remove arbitration clauses, and the court found no clear intention to include arbitration in the signed agreement—Consequently, the appeal was dismissed, affirming the High Court's decision. ...

Arbitration Act, 1940—Section 34—Arbitration clause, determined by the parties' language, includes the arbitrator's jurisdiction over the validity and scope of the arbitration agreement—The inclusion of disputes, including the arbitrator’s jurisdiction, within an arbitration clause depends primarily on the specific terms and language used by the parties—Expressions such as 'arising out of,' 'in respect of,' 'in connection with,' 'relation to,' 'consequence of,' 'concerning,' or 'relating to' the contract are of the widest amplitude, covering issues of existence, validity, and effect (scope) of the arbitration agreement—Generally, an arbitrator cannot determine their own jurisdiction, a matter for the courts, unless the parties specifically ...

Arbitration Act, 1940—Section 33, Section 41—Two agreements between parties, one appointing the other as a Sales Representative and the other governing the sale of goods, the dispute regarding the sale agreement falls under the arbitration clause specified in the latter agreement—Annexures B1 and B2, relating to specific machinery purchases, constitute a separate contractual set governed by Clause 8's arbitration provision—The High Court's principle that the latest document governs where there is inconsistency does not apply, as subsequent documents do not alter the legal relationship concerning the machinery sales in question—Therefore, the arbitration tribunal of the Bharat Chamber of Commerce is competent to resolve the entire dispute concerning the sale agreements, excluding items covered by Annex...