06 October 2021, Wednesday

7 months ago

The mere mention in the superseding counteroffer of the prior offer letter containing an arbitration clause is not enough: Delhi High Court

6 October 2021 (corrigendum issued on 22.10.2021) | Airox Technologies (P) Ltd. v. Shantimukand Hospital | Arb. P.  315 of 2020 | Delhi High Court | Sanjeev Narula J | SCC OnLine Del 4770

An offer letter had an arbitration clause. The offer was not accepted but a counteroffer—a purchase order—was issued and accepted. There was a mention of the offer letter in the purchase order. Held, there was no arbitration agreement because the offer letter had remained an offer.

The mention of the offer letter in the purchase order would not imply that the offer letter was incorporated (by reference). The purchase order was at complete variance with the offer letter and superseded it.

Also, the exchange of communications and the response to the notice of arbitration has to be holistically read. They reveal the respondent always refuted the existence of an arbitration agreement.

Read the judgment here.

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