Rockwell Automation India Pvt. Ltd. v. ETA Engineering Pvt. Ltd. - (High Court of Madras) (01 Jul 2016)

Court refutes arguments transposing arbitration clause from pricing clause

MANU/TN/1207/2016

Commercial

An arbitration clause can be incorporated in a contract where reference to the same is made as part of the contract, the Madras High Court reiterated.

The dispute, between the respondent - a successful bidder to work on Chennai Metro Rail Project - and the petitioner, a sub-contractor of the same. Dispute arose between the two in respect of payments, with the petitioner seeking appointment of an arbitrator to adjudicate the dispute. It relied on Clause 5 of the agreement, ‘Basis of Contract’, which mentioned documents forming part of the contract agreement.

The court accepted defendant’s arguments that Clause 5 related only to determination of price. Documents mentioned in the clause were restricted in their application that effect.

Relevant : Pyrites, Phosphates and Chemicals Ltd. vs. Sebilan Compania and Anr. MANU/SC/1229/2001 M.R. Engineers and Contractors Pvt. Ltd. vs. Som Datt Builders Ltd. MANU/SC/1150/2009

Tags : ARBITRATION CLAUSE INCORPORATION CONTRACT