Advocates appeared:
For the Petitioner(s): Mr. Atul Chitale, Sr. Adv. Mr. Sameer Jayant Chitnis, Adv. Ms. Koninica Bose, Adv. Mrs. Suchitra Atul Chitale, AOR
For the Respondent(s): Mr. Abhay Anil Anturkar, Adv. Mr. Dhruv Tank, Adv. Mr. Sarthak Mehrotra, Adv. Ms. Surbhi Kapoor, AOR Ms. Subhi Pastor, Adv. Mr. Uday Gautam, Adv. Ms. Aradhya Srivastava, Adv. Ms. Sujeeta Srivastava, AOR

What is the effect of incorporating an arbitration clause from a prior document into a later contract by reference under Section 7(5) of the Arbitration and Conciliation Act, 1996?

Key Points: - The appellant, Hirani Developers, entered into a Development Agreement with the respondent society on 20.12.2011, which included an arbitration clause (Clause 36) (!) . - The appellant subsequently entered into Permanent Alternate Accommodation Agreements with individual respondent members, which included a clause (Clause 14) stating that all terms and conditions of the Development Agreement were to be construed as part of the new agreements and binding on the parties (!) . - The High Court had previously dismissed the appellant's Section 11 applications, ruling that there was no arbitration agreement because the individual members were not privy to the original Development Agreement (!) . - The Supreme Court held that Clause 14 of the Permanent Alternate Accommodation Agreements demonstrated a clear intention to incorporate the Development Agreement in its entirety, including the arbitration clause (!) (!) . - The Supreme Court clarified that under Section 7(5) of the Arbitration Act, an arbitration clause in another document is incorporated into a later contract if the reference indicates an intention to make that clause part of the contract (!) (!) . - The Supreme Court set aside the High Court's order and allowed the appeals (!) . - Mr. Vishal Kanade, Advocate, Bombay High Court, was appointed as the Sole Arbitrator to resolve the disputes between the appellant and the respondent members (!) .

What is the effect of incorporating an arbitration clause from a prior document into a later contract by reference under Section 7(5) of the Arbitration and Conciliation Act, 1996?