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2025 Supreme(P&H) 143
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
PANKAJ JAIN, J.
Sattyam Computers - Petitioner
Versus
Ingram Micro India Ltd And Others - Respondents
CR-213-2022 (O&M)
Decided On : 13-05-2025
Advocate Appeared:
For the Appellant :Mr. Rajan Bansal, Advocate for the petitioner.
For the Respondent: Mr. Sudhir Kumar, Mr. Deepam Raghav, Mr. Kuldeep V. Singh Ahluwalia, Ms. Jasjot Kaur
An invoice's terms can constitute a valid arbitration agreement if acceptance of goods is interpreted as acceptance of the invoice's terms, as outlined under Section 7 of the Arbitration and Conciliation Act, 1996.
Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 7 - Interpretation of invoice as an arbitration agreement - The court held that the invoice's conditions constitute a valid arbitration agreement per Section 7, as acceptance of goods implies acceptance of stated terms. (Paras 3, 9, 13)
(B) Concluded agreement - The court determined that the explicit mention on the invoice of accepting terms upon receipt/satisfaction of goods suffices to establish an agreement under the Act. (Paras 10, 12)
Facts of the case:
The plaintiff sued for Rs.99,02,419, claiming non-payment for goods delivered, contending terms on the invoice do not form a valid arbitration clause.
Findings of Court:
The court ruled the invoice amounts to an arbitration agreement as defined in the Act, facilitating arbitration of the dispute.
Issues: The core issue was whether the invoice’s terms constituted an enforceable arbitration agreement.
Ratio Decidendi: The court reasoned that acceptance of the invoice terms, as outlined upon receipt of delivery and payment acknowledging receipt, constitutes a concluded arbitration agreement under Section 7.
Result: Revision petition disposed of in favor of arbitration.
| Table of Content |
|---|
| 1. petitioner's recovery suit and appeal history. (Para 1 , 4 , 5) |
| 2. issue of arbitration agreement on invoices. (Para 2 , 3) |
| 3. arguments regarding invoice terms as arbitration agreement. (Para 6 , 7 , 10 , 11) |
| 4. court analysis of terms indicating arbitration agreement. (Para 8 , 9 , 13 , 16) |
| 5. past litigation and settlement context. (Para 14 , 15) |
| 6. conclusion and disposal of the petition. (Para 17 , 18) |
JUDGMENT :
PANKAJ JAIN, J. (ORAL)
Challenge is to the order dated 15.12.2021 passed by District Judge, Bathinda whereby the appeal filed by the respondents under Section 37(1)(a) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the 1996 Act’) stands accepted and the suit preferred by the petitioner, for recovery of Rs.99,02,419/-, has been referred for arbitration.
2. The issue relates to the interpretation of invoice.
3. The question raised is :
‘Whether the terms & conditions mentioned on the back of the invoice, amount to arbitration agreement in terms of Section 7 of the 1996 Act or not?
4. Plaintiff/petitioner filed suit for recovery of a sum of Rs.99,02,419/-. The main plea of the plaintiff which forms Para 5 of the plaint, reads as under:
“5. That on receipt of account statement from the defendants, it revealed that in the year 2010- 11, entries of invoices bearing No.7400042 dated 6.4.2010 for Rs.44,574/-, 7400366 dated 23.4.2010 for Rs.1,32,297/-, 7400376 dated 23.4.2010 for Rs.1,13,513/-, 7400444 dated 27.4.2010 for Rs.99,038/-, 7400606 dated 30.4.2014 for Rs.1,29,448/-, 7400772 dated 10.5.2010 for Rs.60,138/-, 7401201 dated 28.5.2010 for Rs.87,565/-, 7401346 dated 2.6.2010 for Rs.1,02,994/-, 7401448 dated 11.6.2014 for Rs.1,24,279/-, 7401531 dated 16.6.2010 for Rs.10,650/-, 7401567 dated 17.6.2010 for Rs.25,689/-, 7401935 dated 3.7.2010 for Rs.64,619, 7402528 dated 31.10.2010 for Rs.1,05,342/-, 7402733 dated 13.8.2010 for Rs.1,18,587/-, 7403098 dated 28.8.2010 for Rs.1,18,160/-, 7403292 dated 6.9.2010 for Rs.1,18,160/-, 7403634 dated 21.9.2010 for Rs.1,03,495/-, 7403772 dated 25.9.2010 for Rs.2,63,776/-, 7404222 dated 18.10.2010 for Rs.91,468/-, 7405008 dated 23.11.2010 for Rs.1,15,127/-, 7405009 dated 23.11.2010 for Rs.53,805/-, 7405139 dated 27.11.2010 for Rs.53,541/-, 7405947 dated 30.12.2010 for Rs.17,355/-, 7406069 dated 31.12.2010 for Rs.1,06,555/-, 7406107 dated 6.1.2011 for Rs.93,579/-, 7406247 dated 14.1.2011 for Rs.26,771/-, 7406248 dated 14.1.2011 for Rs.1,05,500/-, 7406276 dated 14.1.2011 for Rs.53,541/-, 7406435 dated 24.1.2011 for Rs.53,278/-, 7406545 dated 28.1.2011 for Rs.1,29,765/-, 7406666 dated 31.1.2011 for Rs.1,01,702/-, 7406770 dated 4.2.2011 for Rs.79,916/-, 7406915 dated 14.2.2011 for Rs.33,391/-, 7407250 dated 26.2.2011 for Rs.1,05,500/-, 7407305 dated 28.2.2011 for Rs.1,26,178/-, dated 7407318 dated 28.2.2011 for Rs.9,233/-, 7407531 dated 11.3.2011 for Rs.20,472/-, 7408064 dated 31.3.2011 for Rs.1,02,335/- (total amounting to Rs.33,01,436/-) for the year 2011-12 entries of invoices bearing 7400009 /- dated 1.4.2011 for Rs.94,918/-, 7400045 dated 2.4.2011 for Rs.20,045/-, 7400117 dated 8.4.2011 for Rs.1,05,222/-, 7400253 dated 15.4.2011 for Rs.73,534/-, 7400351 dated 29.4.2011 for Rs.1,04,972/-, 7400420 dated 21.4.2011 for Rs.1,02,071/-, 7400552 dated 28.4.2011 for Rs.5,750/-, 7400970 dated 13.5.2011 for Rs.1,25,621/-, 7401028 dated 17.5.2011 for Rs.1,09,193/-, 7401029 dated 17.5.2011 for Rs.1,958/-, 7401186 dated 23.5.2011 for Rs.1,15,990/-, 7401407 dated 28.5.2011 for Rs.1,04,725/-, 7401769 dated 14.6.2011 for Rs.74,483/-, 7401770 dated 14.6.2011 for Rs.1,21,853/-, 7402043 dated 22.6.2011 for Rs.21,109/-, 7402145 dated 25.6.2011 for Rs.67,256/-, 7402188 dated 27.6.2011 for Rs.1,12,257/-, 7402395 dated 30.6.2011 for Rs.16,097/-, 7402420 dated 30.6.2011 for Rs.1,42,847/-, 7402564 dated 8.7.2011 for Rs.54,122/-, 7402687 dated 14.7.2011 for Rs.54,860/-, 7403032 dated 27.7.2011 for Rs.1,50,054/-, 7403077 dated 29.7.2011 for Rs.1,85,680/-, 7403705 dated 25.8.20
