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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN, J.
Sanjiv Manmohan Gupta – Appellant
Versus
Sai Estate Consultants Chembur Pvt. Ltd. – Respondent
JUDGEMENT :
Context and Factual Background:
1. The captioned proceedings entail an Application under Section 11 (“Section 11 Application”) of the Arbitration and Conciliation Act, 1996 (“the Act”), and a Petition filed under Section 9 of the Act (“Section 9 Petition”). The short question that needs consideration is whether the parties have executed an arbitration agreement.
2. The Respondent had availed of services of the Applicant-Petitioner for outdoor advertisements on hoardings. The Applicant-Petitioner makes a claim for outstanding payments owed by the Respondent for such services.
Contentions of the Parties:
3. It is the Applicant-Petitioner’s case that the arbitration agreement is contained in the invoices raised by the Applicant-Petitioner on the Respondent – these invoices were raised during the period between February 2018 and June 2019 (found on pages 41, 49, 55, 60, 66, 73, 79, 84, 87, 91, 94, 96, 99, 102, 107, 110 and 114 of the Application). Each of these invoices contains an arbitration clause. The Applicant-Petitioner submits that invoices have been raised and acted upon because the services have been accepted;monies have been paid on the basis of the invoices (the last
The existence of an arbitration agreement can be inferred from invoices containing an arbitration clause, which parties acted upon without objection, and disputes over its validity are to be resolved....
The court affirmed that an arbitration clause in invoices is valid if the parties acted upon those invoices, establishing a prima facie arbitration agreement.
Arbitration agreement - Appointment of Sole Arbitrator - If there is sufficient material on record to establish that condition/clause in invoices were accepted and acted upon, parties would be ad ide....
The inclusion of an arbitration clause in unilateral tax invoices does not constitute a valid arbitration agreement if the purchase orders do not contain or make any reference to arbitration.
An arbitration agreement under the Arbitration and Conciliation Act, 1996, does not require signatures if parties' intent to arbitrate can be inferred from conduct or written documentation.
The consent to arbitrate can waive mandatory pre-arbitration formalities, allowing disputes from separate contracts to be arbitrated as a composite matter.
The referral court under Section 11 of the Arbitration and Conciliation Act must determine the prima facie existence of an arbitration agreement and appoint an arbitrator if satisfied.
The main legal point established is the limited scope of examination under Section 11 of the A&C Act, which focuses solely on the existence of an arbitration agreement.
An arbitration agreement may be valid without signatures if its essential attributes are satisfied, including mutual acknowledgment of disputes by parties.
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