M/S. INOX WIND LTD. versus M/S. THERMOCABLES LTD.

M/S. INOX WIND LTD. versus M/S. THERMOCABLES LTD.

A purchase order containing a general reference to standard terms and conditions is sufficient to incorporate the arbitration clause therein, and the respondent’s acceptance of these terms (except delivery period) establishes the existence of an arbitration agreement under Section 7(5). The High Court’s contrary finding was incorrect and is set aside.

Parties
Appellant: M/S. INOX WIND LTD.; Respondent: M/S. THERMOCABLES LTD.
Jurisdiction
India
Judgment Date
05 January 2018
Procedural Posture
Civil Appeal / Appeal Against High Court Order Under Section 11(6) of the Arbitration and Conciliation Act, 1996
Outcome
Appeal allowed
Legal Topics
Arbitration Clause Incorporation, Arbitration Agreement, Contract Construction
Arbitration Law Contract Law Arbitration Clause Incorporation Arbitration Agreement Contract Construction

Case Brief

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Parties

M/S. INOX WIND LTD.

Appellant

M/S. THERMOCABLES LTD.

Respondent

Procedural Posture

Civil Appeal / Appeal Against High Court Order Under Section 11(6) of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether a general reference to standard terms and conditions in a purchase order is sufficient to incorporate an arbitration clause into the contract under Section 7(5) and Section 11(6) of the Arbitration and Conciliation Act, 1996

Ratio Decidendi

A purchase order containing a general reference to standard terms and conditions is sufficient to incorporate the arbitration clause therein, and the respondent’s acceptance of these terms (except delivery period) establishes the existence of an arbitration agreement under Section 7(5). The High Court’s contrary finding was incorrect and is set aside.

Court Disposition

Appeal allowed

Orders

  • Judgment of the High Court of Judicature at Allahabad set aside
  • Justice Sushil Harkauli appointed as sole Arbitrator to adjudicate the dispute between the parties