21 November 2022


High Court of Madras

Rockwell Automation India Pvt. Ltd. v. ETA Engineering Pvt. Ltd.




Court refutes arguments transposing arbitration clause from pricing clause

An arbitration clause can be incorporated in a contract where reference to the same is made as part of the contract, the Madras High Court reiterated.

The dispute, between the respondent - a successful bidder to work on Chennai Metro Rail Project - and the petitioner, a sub-contractor of the same. Dispute arose between the two in respect of payments, with the petitioner seeking appointment of an arbitrator to adjudicate the dispute. It relied on Clause 5 of the agreement, ‘Basis of Contract’, which mentioned documents forming part of the contract agreement.

The court accepted defendant’s arguments that Clause 5 related only to determination of price. Documents mentioned in the clause were restricted in their application that effect.


Pyrites, Phosphates and Chemicals Ltd. vs. Sebilan Compania and Anr. MANU/SC/1229/2001
M.R. Engineers and Contractors Pvt. Ltd. vs. Som Datt Builders Ltd. MANU/SC/1150/2009

Tags : arbitration clause incorporation contract

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