29 July 2021 | Blue Star Ltd. v. Bhasin Infotech & Infrastructure Pvt. Ltd. and another | Arb. Pet. No. 444 of 2021| Sanjeev Narula J | 2021 SCC OnLine Del 3900
[Ed. The date of this judgment is wrongly reported by SCC as 05 August 2021]
Blue Star and Bhasin entered into a Service Agreement that had an arbitration clause. Later, both signed a letter with an additional party Venice. The letter did not refer to dispute resolution or arbitration. Instead, it noted that the Service Agreement “has the same effect and all clauses are binding on all parties,” and only the billing name was changed from Bhasin to Venice. Also, the letter “shall be attached as an addendum to the Service Agreement.”
In Blue Star’s petition for the arbitrator's appointment, the question before Narula J was if, under the letter, Venice became a party to the arbitration agreement within the terms of Section 7 ACA.
Narula said yes, prima facie, and left the matter for final determination by the arbitrator. His reasoning was as follows:-
Access the decision here.
Categories: Appointment of Arbitrators | Arbitration Agreement | Binding Non Signatory to Arbitration | Chloro Controls | Construction of Arbitration Agreement | Doctrine of Group of Companies | Existence of Arbitration Agreement | Form of Arbitration Agreement | Incorporation | Incorporation by Reference | Incorporation of Arbitration Agreement | Interpretation of Arbitration Agreement | Joinder of Non Signatories | Necessary Party | Proper Party | Section 11 ACA | Section 7 ACA