{"id":214578,"date":"2019-05-11T23:47:51","date_gmt":"2019-05-11T18:17:51","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=214578"},"modified":"2019-05-11T23:47:51","modified_gmt":"2019-05-11T18:17:51","slug":"sc-to-decide-if-arbitration-clause-in-the-principal-contract-be-imported-into-subsequent-contracts","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/11\/sc-to-decide-if-arbitration-clause-in-the-principal-contract-be-imported-into-subsequent-contracts\/","title":{"rendered":"SC to decide if Arbitration Clause in the principal contract be imported into subsequent contracts"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court: <\/strong>The bench of SA Bobde and SA Nazeer, JJ has issued notice to Pometon Spa, an Italian company involved in manufacturing, marketing of steel shot and steel grit, in a petition filed by Rotocast Industries, an Indian steel grit company, for appointment of arbitrator for resolution of dispute between the 2 companies.<\/p>\n<p style=\"text-align: justify;\">According to the petition filed by Swarnendu Chatterji and Pallavi Pratap,<\/p>\n<ul style=\"text-align: justify;\">\n<li>the 2 companies had entered into a Joint Venture wherein Pometon supplied special manufacturing equipment to Rotocast and would then sell the steel shot manufactured by Rotocast in regions around the world.<\/li>\n<li>However, the machineries that were supplied were faulty which led to manufacture of defective product right from the beginning.<\/li>\n<li>Several requests were made to the Respondents on various occasions, however, no help on the part of Respondents to solve the problems, which led to the total failure on the Joint Venture Project.<\/li>\n<li>The petitioner has incurred losses to the tune of around Rs. 11 Cr.<\/li>\n<li>The dispute relates to Supply of faulty and poor quality of machinery pursuant to Agreements dated 23.12.2018, which contains Arbitration Clause and any dispute arising out of Principal Agreement is to be delivered by way of arbitration which the petitioner has availed by invocation of the arbitration clause.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Since the Arbitration Clause is in the Main agreement and not in the other 2 agreements entered into by the parties i.e. Supply Agreement and Distribution Agreement, the question that arises for consideration is,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cWhether the Arbitration Clause in the Principal Agreement dated 23.12.2013, which refers to two other Agreements i.e. Supply Agreement and Distribution Agreement will also be read into the other two Agreements vide the theory of Incorporation?\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The petition reads,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cIt is settled law that, Arbitration Clause in the principal contract can be imported into the subsequent contracts, notwithstanding the fact that arbitration clause is not specifically provided for in the subsequent Agreements or Agreements which are concurrent with the Principal Contract. Such incorporation of arbitration clause to a subsequent contract has been statutorily recognized [<strong>Section 7(5) Of the Arbitration and Conciliation Act, 1996<\/strong>]\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The petition not just calls for appointment of the arbitrator but also deals with the following important questions of law:<\/p>\n<ol>\n<li style=\"text-align: justify;\">Interpretation of Section 7(5) of the Arbitration and Conciliation Act, 1996.<\/li>\n<li style=\"text-align: justify;\">Whether the arbitration clause in the main agreement can be read into the subsequent agreements<\/li>\n<li style=\"text-align: justify;\">The arbitration clause in the agreement supersedes the dispute clause in the purchase order.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: The bench of SA Bobde and SA Nazeer, JJ has issued notice to Pometon Spa, an Italian company involved in <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[24904,3226,23324,35347],"class_list":["post-214578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot_off_the_press","category-news","tag-appointment-of-arbitrator","tag-arbitration","tag-arbitration-clause","tag-section-75-of-arbitration-and-conciliation-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC to decide if Arbitration Clause in the principal contract be imported into subsequent contracts | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Upholds parties&#8217; intention to arbitrate","author":"Editor","date":"June 17, 2024","format":false,"excerpt":"The Court noted Arbitration agreement specifying an even number of arbitrators cannot be a ground to render the arbitration agreement invalid. Appointed a sole arbitrator under Section 11(6) petition.","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\/2024\/02\/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\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":196111,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/18\/appointment-of-superintending-engineer-as-an-arbitrator-untenable-in-light-of-s-125-of-arbitration-and-conciliation-act\/","url_meta":{"origin":214578,"position":1},"title":"Appointment of Superintending Engineer as an arbitrator untenable in light of Section 12(5) of Arbitration and Conciliation Act","author":"Saba","date":"May 18, 2018","format":false,"excerpt":"Himachal Pradesh High Court: A petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 was allowed by a Single Judge Bench comprising of Vivek Singh Thakur, J. The petition was filed for appointment of an arbitrator to adjudicate upon the claim of the petitioner against the respondents\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":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":375099,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/07\/theres-distinction-between-claim-to-be-made-and-petition-under-section-11-of-arbitration-act-to-be-filed-ph-hc\/","url_meta":{"origin":214578,"position":2},"title":"Arbitration and Conciliation Act, 1996 | Time-Barred Claim \u2260 Time-Barred Section 11 Petition: Punjab and Haryana High Court appoints Second Arbitrator","author":"Shriya Singh","date":"February 7, 2026","format":false,"excerpt":"\u201cThe issue with regard to the time barred claim is not to be gone into at the reference stage under Section 11 of the Arbitration and Conciliation Act, 1996 but can be seen only by the Arbitrator\/Arbitration Tribunal at the relevant stage.\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":"claim to be made and petition under Section 11 Arbitration Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/claim-to-be-made-and-petition-under-Section-11-Arbitration-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/claim-to-be-made-and-petition-under-Section-11-Arbitration-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/claim-to-be-made-and-petition-under-Section-11-Arbitration-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/claim-to-be-made-and-petition-under-Section-11-Arbitration-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":243660,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/10\/del-hc-on-invocation-of-arbitration-clause-if-a-party-appoints-arbitrator-on-its-own-and-does-not-receive-confirmation-from-another-party-should-former-approach-court-under-s-11-of-arbitration-ac\/","url_meta":{"origin":214578,"position":3},"title":"Del HC | On invocation of arbitration clause, if a party appoints arbitrator on its own and does not receive confirmation from another party, should former approach Court under S. 11 of Arbitration Act? HC discusses","author":"Bhumika Indulia","date":"February 10, 2021","format":false,"excerpt":"Delhi High Court: Kameswar Rao, J., decided a petition wherein on the invocation of the arbitration clause, one of the parties appointed the sole arbitrator on its own. The instant petition was filed under Section 11(6) of the Arbitration and Conciliation Act, 1996. Petitioner and the respondents entered into a\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":196412,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/25\/arbitrator-appointed-in-light-of-undisputed-arbitration-agreement-between-the-parties\/","url_meta":{"origin":214578,"position":4},"title":"Arbitrator appointed in light of undisputed Arbitration Agreement between the parties","author":"Saba","date":"May 25, 2018","format":false,"excerpt":"Calcutta High Court: A Single Judge Bench comprising of Ashis Kumar Chakraborty. J. decided an arbitration petition, wherein the arbitrator was appointed by the Court in light of disagreement between the parties on appointment of the arbitrator. The parties entered into a Contract for certain works. Clause 10.1 of the\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":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=1050%2C600&ssl=1 3x"},"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":214578,"position":5},"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":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/214578","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\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=214578"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/214578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154914"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=214578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=214578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=214578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}