M/S. ELITE ENGINEERING AND CONSTRUCTION (HYD.) PRIVATE LIMITED REP. BY ITS MANAGING DIRECTOR versus M/S. TEACHTRANS CONSTRUCTION INDIA PRIVATE LIMITED REP. BY ITS MANAGING DIRECTOR

M/S. ELITE ENGINEERING AND CONSTRUCTION (HYD.) PRIVATE LIMITED REP. BY ITS MANAGING DIRECTOR versus M/S. TEACHTRANS CONSTRUCTION INDIA PRIVATE LIMITED REP. BY ITS MANAGING DIRECTOR

The reference in the contract between the appellant and respondent was limited to items related to works and quality; it did not indicate an intention to incorporate the arbitration clause from the EPC Contractor agreement. Therefore, no arbitration agreement existed between the parties.

Parties
Appellant: M/S. Elite Engineering and Construction (Hyd.) Private Limited Rep. by its Managing Director; Respondent: M/S. Techtrans Construction India Private Limited Rep. by its Managing Director
Jurisdiction
India
Judgment Date
23 February 2018
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Section 11 of Arbitration and Conciliation Act, 1996
Outcome
Appeal dismissed
Legal Topics
Arbitration Clause Incorporation, Reference to Extrinsic Contract Terms, Contractual Interpretation
Arbitration Law Contract Law Arbitration Clause Incorporation Reference to Extrinsic Contract Terms Contractual Interpretation

Case Brief

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Parties

M/S. Elite Engineering and Construction (Hyd.) Private Limited Rep. by its Managing Director

Appellant

M/S. Techtrans Construction India Private Limited Rep. by its Managing Director

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Section 11 of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether an arbitration clause in an independent document can be incorporated into a contract by mere reference
  2. 2 Whether contract between appellant and respondent incorporated arbitration clause from EPC Contractor agreement

Ratio Decidendi

The reference in the contract between the appellant and respondent was limited to items related to works and quality; it did not indicate an intention to incorporate the arbitration clause from the EPC Contractor agreement. Therefore, no arbitration agreement existed between the parties.

Court Disposition

Appeal dismissed

Orders

  • Hold that parties did not intend to incorporate arbitration clause from EPC Contractor agreement into their contract
  • No appointment of arbitrator or constitution of Arbitral Tribunal granted