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2022 (9) TMI 1117 - HC - Indian LawsApplication for referring the matter to arbitration - existence of arbitration agreement between the parties - whether the documents on record, upon which the parties have placed reliance, demonstrate existence of such an arbitration clause/agreement? - HELD THAT:- This Court is of the opinion that the trial Court committed a grave error in failing to appreciate the true purport of the documents on record. For an arbitration agreement to come into existence between the parties, there ought to be a document executed on behalf of both the parties, showing consensus ad-idem, incorporating such an arbitration clause/agreement. The only document signed on behalf of both the parties is the letter of intent dated 12/07/2012, which admittedly contains no arbitration clause/agreement. Similarly, even the purchase order dated 16/07/2012, which is signed only on behalf of the petitioners does not contain such an arbitration clause. This Court is of the opinion that merely because the proposal forwarded on behalf of the respondents, by letter dated 26/06/2012, contained an arbitration clause, which was unilaterally signed only on behalf of the respondents and there was reference thereto in the letter of intent dated 12/07/2012 and the purchase order dated 16/07/2012, it cannot be said that an arbitration agreement came into existence between the parties. The trial Court failed to appreciate this aspect of the matter while exercising power under Section 8 of the Act of 1996 - Petition allowed.
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