{"id":200373,"date":"2018-08-20T14:45:05","date_gmt":"2018-08-20T09:15:05","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=200373"},"modified":"2018-08-21T12:38:58","modified_gmt":"2018-08-21T07:08:58","slug":"arbitration-clause-held-to-survive-even-when-leave-and-licence-agreement-was-mutually-terminated","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/08\/20\/arbitration-clause-held-to-survive-even-when-leave-and-licence-agreement-was-mutually-terminated\/","title":{"rendered":"Arbitration Clause held to survive even when Leave and Licence Agreement was mutually terminated"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Bombay High Court: <\/strong>A Single Judge Bench comprising of Mridula Bhatkar, J. directed the trial court to refer the matter before it to the Arbitrator holding that it had no jurisdiction to try the suit.<\/p>\n<p style=\"text-align: justify;\">The respondent \u2013 original plaintiff \u2013 had filed a suit based on an agreement entered into between the parties herein in July 2012. Pursuant to the agreement, the respondent was allowed to use the premises concerned on a leave and licence basis. As per the agreement, any dispute in respect of the transaction was to be referred to\u00a0 Arbitrator under the Arbitration and Conciliation Act, 1996. Subsequently, the said agreement was mutually terminated by the parties in October 2012. Thereafter, the respondent filed a suit for recovery of security deposit and other claims based on the contents of the said agreement. A Notice of Motion was taken out by the appellant seeking that the civil court had no jurisdiction to try the suit in light of the arbitration clause (Clause 11) as contained on the agreement. However, the trial court dismissed the Notice of Motion and held that the civil court had jurisdiction to try the issue. Aggrieved thus, the appellant filed the instant appeal.<\/p>\n<p style=\"text-align: justify;\">The question before the High Court was whether an arbitration clause survives even after bilateral termination of the agreement? The High Court referred to <strong><em>SMS Tea Estate (P) Ltd. <\/em>v. <em>Chandmari Tea Co. (P) Ltd.<\/em><\/strong>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/T0o3LPRd\">(2011) 14 SCC 66<\/a> and <strong><em>Magma Leasing and Finance Ltd. <\/em>v. <em>Potluri Madhavilata<\/em><\/strong>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/lhgKd8WW\">(2009) 10 SCC 103<\/a>. It was held that once the parties have intended to refer their dispute to the Arbitrator, then any dispute relating to such agreement must necessarily go to Arbitrator, even if the agreement containing such a clause gets terminated by mutual consent. Consequently, it was held that the trial court had no jurisdiction to try the suit. [Ashok Thapar v. Tarang Exports (P) Ltd.,<a href=\"http:\/\/www.scconline.com\/DocumentLink\/sut72LNn\"><b>2018 SCC OnLine Bom 1489<\/b><\/a>, dated 13-07-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court: A Single Judge Bench comprising of Mridula Bhatkar, J. directed the trial court to refer the matter before it <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[23324,31512,31514,31513],"class_list":["post-200373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitration-clause","tag-leave-and-licence-agreement","tag-notice-of-motion","tag-recovery-of-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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2018","format":false,"excerpt":"Karnataka High Court: A Single judge bench comprising of Dinesh Maheshwari, J. while hearing a civil writ petition for appointment of arbitrator noted that even after termination of an agreement entered into between the parties, the arbitration agreement survives. Brief background of the case was that the respondent had entered\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":298424,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/03\/mere-use-of-word-arbitration-or-arbitrator-not-enough-to-construe-an-arbitration-agreement-delhi-hc\/","url_meta":{"origin":200373,"position":1},"title":"Mere use of word \u2018arbitration\u2019 or \u2018arbitrator\u2019 not enough to construe an agreement to be an arbitration agreement: Delhi High Court","author":"Editor","date":"August 3, 2023","format":false,"excerpt":"\u201cIt is palpably clear that the language of the purported arbitration clause must evidence an unambiguous, explicit and unequivocal intention to refer the disputes to arbitration, leaving no room for doubt that parties chose arbitration as their only mode of resolution of disputes.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":272655,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/30\/calcutta-high-court-illegal-procedure-for-appointment-of-arbitrator-does-not-render-arbitration-agreement-illegal-in-toto-guiding-principles-for-appointment-of-arbitrator-reiterated\/","url_meta":{"origin":200373,"position":2},"title":"Calcutta High Court | Illegal procedure for appointment of Arbitrator does not render Arbitration agreement illegal in toto; Guiding Principles for Appointment of Arbitrator reiterated","author":"Editor","date":"August 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: In a petition challenging the appointment of sole Arbitrator by the respondent, Shekhar B. Saraf, J., held that merely because an arbitration clause provides for an illegal method of appointment of arbitrator, it does not come to an end and after removing the illegal portion\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":282379,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/24\/delhi-high-court-rules-reiterates-former-clause-to-prevail-over-latter-in-case-of-inconsistency-between-arbitration-clauses-in-an-agreement-legalnews-legalresearch-legalawareness\/","url_meta":{"origin":200373,"position":3},"title":"[Arbitration Agreement] Delhi High Court reiterates the law of interpretation with respect to two inconsistent clauses of a same instrument\/document\/deed","author":"Editor","date":"January 24, 2023","format":false,"excerpt":"Where there exists any iota of inconsistency between two provisions of a same instrument, the former clause shall prevail over the latter one","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-418.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":278787,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/30\/jharkhand-high-court-legal-research-legal-update-arbitration-conciliation-act-1996-section-116-section-152-section-21\/","url_meta":{"origin":200373,"position":4},"title":"Jharkhand High Court | Maintainability of application under S. 11(6), Arbitration and Conciliation Act, 1996 for appointment of substitute arbitrator","author":"Editor","date":"November 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Jharkhand High Court: While allowing the application under Section 11(6), Arbitration and Conciliation Act, 1996 (Arbitration Act) for appointment of substitute arbitrator, a single judge bench of Sujit Narayan Prasad, J. held that since first arbitrator was appointed under Section 11(6) of the Arbitration Act after the applicant\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Jharkhand High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image38-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":272263,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/26\/calcutta-high-court-conduct-of-parties-not-a-substitute-for-an-arbitration-agreement\/","url_meta":{"origin":200373,"position":5},"title":"Calcutta High Court | Conduct of Parties &#8211; not a substitute for an arbitration agreement","author":"Editor","date":"August 26, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: While deciding a review petition, Debangsu Basak, J. held that the court while exercising powers under Section 11 of the Arbitration and Conciliation Act, 1996 cannot substitute arbitration agreement with conduct of parties. Facts of the Case The respondent filed an application under Section 11\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/200373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=200373"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/200373\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/74381"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=200373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=200373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=200373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}