27 December 2021, Monday

5 months ago

Question of incorporation of the arbitration agreement by reference, or if non-signatories were bound are matters for the arbitral tribunal: Madras High Court

07 December 2021 | Daimler Financial Services India Private Limited v. Rajasree Motors Private Limited | Arb. OP (Com. Div.) No. 226 of 2021 | Senthilkumar Ramamoorthy J | Madras High Court 

The court was considering a “suite of agreements” related to the loan facility given by the petitioner to the respondent. One agreement had an arbitration clause; the others did not.

Arbitration could proceed under all the agreements if either the arbitration clause one document was incorporated by reference into the others or by applying any of the legal bases available to bind non-signatories to arbitration.

In the court’s prima facie opinion, all agreements related to extending loan facilities, and it was “inappropriate” to decide in a Section 11 petition if the arbitration clauses were incorporated by reference or if the circumstances nevertheless justify drawing non-signatories into the arbitration.

Read the decision here.

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