Unlocking Arbitration Clauses: Incorporation by reference in digital contracts

Introduction

The question of incorporation of arbitration clauses referred to in another document has been a bone of contention between parties, in view of the absence of statutory guidance under Section 7 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”). Although the principle of incorporating an arbitration clause, referred to in another document is a well-established principle in arbitral jurisprudence,[1] Section 7(5) only provides that the reference should be “such as to make that arbitration clause part of the contract”. Hence, it has been left to the courts to determine the conditions that need to be satisfied for the same.Continue Reading Unlocking Arbitration Clauses: Incorporation by reference in digital contracts

Novation of Contract and Section 11 Of the Arbitration and Conciliation Act, 1996

The doctrine of severability dictates that the arbitration clause (arbitration agreement) is deemed to be separate or independent from the overarching contract. Therefore, even when a contract’s legality is challenged, the arbitration agreement remains unaffected. However, the novation of a contract, by way of a supplemental/amended agreement, raises an interesting question regarding the validity of the arbitration clause in the original agreement entered into between the parties, which resultantly stands amended or superseded.  The issue about the extent to which the courts can intervene to determine this also requires judicial consideration.Continue Reading Novation of Contract and Section 11 Of the Arbitration and Conciliation Act, 1996

Arbitrability of Disputes: Indian Jurisprudence [Part I]

Introduction

Arbitrability plays a pivotal role in dispute resolution, determining if a particular dispute can be resolved through arbitration. Several key factors, including, among other things, procedural/curial laws, governing law and actual text of the arbitral agreements, identity of the parties, etc., help establish arbitrability.[1] Continue Reading Arbitrability of Disputes: Indian Jurisprudence [Part I]