The High Court said that the arbitration clause in the agreement paves the way to refer the disputes to the arbitration and the absence of such clause in the disputed agreement bars the availability of this kind of ADR method.
- The petitioner filed a recovery suit before the court for the non-completion of the renovation works of the flat within the stipulated period in the second agreement.
- The agreement entered between the petitioner and the defendant is Flat Buyer’s Agreement and another one was Flat Renovation and Design works Agreement.
- In spite of many excuses given by the petitioner, the defendant failed to fulfil his contractual obligation under the renovation agreement.
- As of now, the defendant (appellant) approached the High Court to seek its directions with regard to the disputed matter must refer to the arbitration under the section 8 of the Arbitration and Conciliation Act and with the Clause 14.2 mentioned in the first agreement.
The Court observed the arbitration clause mentioned in the Flat Buyer’s Agreement and examined the availability of the dispute solving mechanism in the second agreement.
The High Court finds that the relief sought by the Deepa Chawla have the direct connection over the second agreement and it did not speak about the breaches of first agreement.
Justice Jasmeet Singh highlighted that the arbitration clause should be expressly mentioned in all the specific agreements and held that the if the disputes has arisen, Clause 9 of the second agreement explicitly restrains the parties to approach the arbitration to resolve it. Thus, the application has no merits.
The Court quoted the decision of the Supreme Court that the arbitration clauses must be specifically referenced to apply to subsequent agreements.
CASE NAME: Deepa Chawla V. Raheja Developers Ltd.
NAME: Viswa ganesh K, BALLB (Hons.), School of Excellence in Law, Dr. Ambedkar Law University, INTERN UNDER LEGAL VIDHIYA.
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