INDOWIND ENERGY LTD. versus WESCARE (I) LTD. AND ANR.

INDOWIND ENERGY LTD. versus WESCARE (I) LTD. AND ANR.

Appellant cannot be deemed to be a party to the arbitration agreement contained in the agreement dated 24.2.2006, as it did not sign, ratify, approve, or confirm the agreement directly or through correspondence, so no claim or dispute with appellant can be referred to an arbitrator under the Arbitration and Conciliation Act, 1996.

Parties
Appellant: INDOWIND ENERGY LTD.; Respondent No.1: WESCARE (I) LTD.; Respondent No.2: Subuthi Finance Ltd.
Jurisdiction
India
Judgment Date
27 April 2010
Procedural Posture
Civil Appeal / Final (supreme Court)
Outcome
Appeal allowed
Legal Topics
Arbitration Agreement, Non Signatory to Arbitration Agreement, Appointment of Arbitrator, Companies Act, 1956
Arbitration Arbitration Agreement Non Signatory to Arbitration Agreement Appointment of Arbitrator Companies Act, 1956

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Parties

INDOWIND ENERGY LTD.

Appellant

WESCARE (I) LTD.

Respondent No.1

Subuthi Finance Ltd.

Respondent No.2

Procedural Posture

Civil Appeal / Final (supreme Court)

Legal Issues

  1. 1 Whether appellant-company could be said to be a party to the agreement dated 24.2.2006, even though it did not sign the agreement
  2. 2 Whether the arbitration clause in the agreement between respondent nos. 1 and 2 could bind the appellant

Ratio Decidendi

Appellant cannot be deemed to be a party to the arbitration agreement contained in the agreement dated 24.2.2006, as it did not sign, ratify, approve, or confirm the agreement directly or through correspondence, so no claim or dispute with appellant can be referred to an arbitrator under the Arbitration and Conciliation Act, 1996.

Court Disposition

Appeal allowed

Orders

  • Order of High Court appointing arbitrator in regard to claims of respondent no.1 against appellant is set aside
  • Application under section 11(6) of Arbitration and Conciliation Act, 1996 by respondent no.1 as against appellant dismissed