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2018 Supreme(SC) 3

S.A.BOBDE, L.NAGESWARA RAO
INOX WIND LTD. – Appellant
Versus
THERMOCABLES LTD. – Respondent


Judgement Key Points

According to the judgement, a single contract is characterized by the issuance of a purchase order or an agreement that explicitly states that the supply or performance is to be carried out according to the terms mentioned therein and in the attached standard terms and conditions. The purchase order is considered a single contract when it contains a clear and categorical mention that the supply or performance will be as per the specified terms and conditions, and the parties accept these terms (!) (!) .

Furthermore, the court clarified that even if the standard form attached to the purchase order is not from a recognized trade association or professional body, the mere knowledge and acceptance of those standard terms by the parties can suffice to treat the entire arrangement as a single contract. The key aspect is the comprehensive and explicit reference to the terms and conditions within the same contractual document, which collectively form one binding agreement (!) .

In essence, a single contract involves a unified agreement where all relevant terms, including those incorporated by reference or attachment, are intended to be part of the same contractual obligation, and the reference to standard terms within that agreement is sufficient for its validity and enforceability.


JUDGMENT

L. NAGESWARA RAO, J.

Leave granted.

2. This appeal is directed against the judgment of the High Court of Judicature at Allahabad dismissing the application filed by the Appellant under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’).

3. The Appellant is a manufacturer of wind turbine generators (WTGs). The Respondent is engaged in the business of manufacture of wind power cables and other types of cables. Two purchase orders dated 13.12.2012 and 02.02.2013 were issued by the Appellant to the Respondent for supply of cables for their WTGs. According to the Purchase Order, the supply was to be according to the terms mentioned in the order and the Standard Terms and Conditions that were attached thereto. Apart from the other conditions, the Standard Terms and Conditions contain a clause pertaining to dispute resolution. The said clause provides for a dispute to be resolved by a sole arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996. The material on record indicates that the Respondent accepted all the terms and conditions mentioned in the Purchase Order except the delivery period as i




















































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