Showing posts with label tax invoice. Show all posts
Showing posts with label tax invoice. Show all posts

Friday, 15 April 2022

Whether Tax invoices containing reference to Arbitration constitute an Arbitration Agreement?

 It is on the basis of the tax invoices, the applicant is before the

Court to contend that there is an arbitration agreement between the parties. Such a contention as urged on behalf of the applicant cannot be accepted as issuance of tax invoice is certainly required to be held to be an unilateral act on the part of the applicant. The contract between the parties is actually born under the purchase orders. The purchase orders do not contain or make any reference to an arbitration agreement between the parties. {Para 3}

4. To accept the applicant’s case that there is an arbitration

agreement between the parties in my opinion, would be in the teeth of Section 7 of the Act which provides as to what would constitute an arbitration agreement. In the present context, it can be clearly held that there is no conscious agreement between the parties to refer the disputes for adjudication in arbitration. Merely because the tax invoices which are in response to the purchase orders provide for an arbitration, certainly such invoices do not bring about an arbitration agreement as contemplated under Section 7 of the Act.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

ARBITRATION APPLICATION (L.) NO.23207 OF 2021

Concrete Additives and Chemicals Pvt. Ltd Vs. S N Engineering Services Pvt. Ltd.

CORAM : G.S. KULKARNI, J.

DATE : JANUARY 17, 2022.

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