Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 1996 (2) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1996 (2) TMI 529 - SC - Companies LawWhether there existed any valid and binding arbitration clause between the parties? Held that:- In view of the fact that Section 2 [a] of the Act envisages a written agreement for arbitration and that written agreement to submit the existing or future differences to arbitration is a pre-condition and further in view of the fact that the original contract itself was not a concluded contract, there existed no arbitration agreement for reference to the arbitrators. The High Court, therefore, committed a gross error of law in concluding that an agreement had emerged between the parties, from the correspondence and from submission of the tenders to the Board. Accordingly it is declared that there existed no arbitration agreement and that the reference to the arbitration, therefore, is clearly illegal. Consequently arbitrators cannot proceed further to arbiter the dispute, if any. The conclusion of the High Court is set aside. Appeal allowed.
|