Shinhan Bank vs Carol Info Services Limited

Court

Supreme Court of India

Date

13 March 2023

Case No.

Arbitration Petition (Civil) No 1 of 2019

Result

Disposed

Bench

D.Y. Chandrachud, Pamidighantam Sri Narasimha, J.B. Pardiwala

Citation

[2023] 5 S.C.R. 706 : 2023 INSC 217

Headnote

Arbitration and Conciliation Act, 1996: ss.7, 8 – Arbitration agreement – Leave and License agreement as also amenties agreement between the petitioner and the respondent – Disputes between the parties – Invocation of Arbitration clause by the petitioner by Proposing appointment of a sole arbitrator for settlement of disputes – However, denial of existence of an arbitration agreement by the respondent – Case of the respondent that the Amenities agreement contained an arbitration agreement, and not the Leave and Licence agreement; and that the petitioner should move an application u/s. 8 for seeking a reference to arbitration – On appeal, held: Plain consequence of clause (1) of the Amenities agreement is that all the terms of the agreement constitute an integral part of the Leave and Licence agreement – Thus, the parties have intended to make the arbitration clause in the Amenities agreement an integral part of the Leave and Licence agreement – s. 7(5) stipulates that the reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract – Thus, it cannot be said that the petitioner should be now relegated to pursuing the remedy u/s.

8 – In view of the clear terms of the contract between the parties, a reference to arbitration would be necessitated – Sole arbitrator nominated by the petitioner having assumed the position of Lokyukta of the State of Maharashtra, the disputes and differences between the parties to be referred to the former Judge of the High Court. M R Engineers and Contractors Private Limited vs Som Datt Builders Limited (2009) 7 SCC 696 – referred to.

The Judgment of the Court was delivered by DR. DHANANJAYA Y CHANDRACHUD, CJI 1. On 5 August 2011, the petitioner entered into a Leave and License agreement with the respondent for the use and occupation of office premises situated on the 4th Floor of the West Wing at Wockhardt Towers, C-2, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051 for a period of five years. On the same day, an Amenities agreement was contemporaneously executed with the Leave and Licence agreement. Upon the expiry of the term of the Leave and License agreement, a fresh Leave and Licence agreement was execut

View Subscription Plans →