Incorporation of Arbitration Clause by Reference

Posted on February 3, 2018 by lawhukukinet

[Anshuman Chowdhury is a 5th year BBA, LL.B.(Hons.) Student of National Law University Odisha] In a recent judgment in Inox Wind Ltd v Thermocables Ltd (“Inox Wind”) judgement, the Supreme Court held that “a general reference to a standard form of contract of one party will be enough for incorporation of arbitration clause”. This was apparently an expansion of the scope of reference for incorporation of an arbitration clause contained in a standard form of terms and conditions of a party. Brief facts The dispute in question arose out of a contract for supply of cables by Thermocables to Inox Wind. The purchase order issued by Inox Wind mentioned that supply would be as per the terms mentioned therein and in the attached standard terms and conditions (which contained the arbitration clause) and it was not disputed by Thermocables. When a dispute arose, Inox Wind filed an application under section 11(6) of the Arbitration and Conciliation Act, 1996…

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