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Dispute resolution

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Novation of Contract = IMS Learning Resources Private Limited, the respondent herein, filed CS (OS) No.2316 of 2011 in the High Court of Delhi at New Delhi for a permanent injunction restraining infringement of a registered trademark, infringement of copyright, passing off of damages, rendition of accounts of profits and also for other consequential reliefs against the appellant herein. Appellant preferred IA No.18 of 2012 under Section 8, read with Section 5 -of the Arbitration and Conciliation Act, 1996 for rejecting the plaint and referring the dispute to arbitration and also for other consequential reliefs. The High Court rejected the application vide its order dated 16.04.2012 holding that that earlier agreements dated 01.04.2007 and 01.04.2010, which contained arbitration clause stood superseded by a new contract dated 01.02.2011 arrived at between the parties by mutual consent. = Exit paper would clearly indicate that it is a mutually agreed document containing comprehensive terms and conditions which -admittedly does not contain an arbitration clause. = We may indicate that so far as the present case is concerned, parties have entered into a fresh contract contained in the Exit paper which does not even indicate any disputes arising under the original contract or about the settlement thereof, it is nothing but a pure and simple novation of the original contract by mutual consent. Above being the factual and legal position, we find no error in the view taken by the High Court. The appeal, therefore, lacks merit and stands dismissed, with no order as to costs.

published in http://judis.nic.in/supremecourt/imgst.aspx?filename=40682 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 6997 OF 2013 (Arising out of SLP(C) No.33459 of 2012) M/s Young Achievers ….. Appellant Versus IMS Learning Resources Pvt. Ltd. ….Respondent   J U D G M E N T K.S. Radhakrishnan, J. Leave granted. 2. IMS Learning Resources … Continue reading

In the absence of arbitration clause, no case can be filed under arbitration act = mere use of the word ‘arbitration’ or ‘arbitrator’ in a clause will not make it an arbitration agreement, if it requires or contemplates a further or fresh consent of the parties for reference to arbitration. For example, use of words such as “parties can, if they so desire, refer their disputes to arbitration” or “in the event of any dispute, the parties may also agree to refer the same to arbitration” or “if any disputes arise between the parties, they should consider settlement by arbitration” in a clause relating to settlement of disputes, indicate that the clause is not intended to be an arbitration agreement. Similarly, a clause which states that “if the parties so decide, the disputes shall be referred to arbitration” or “any disputes between parties, if they so agree, shall be referred to arbitration” is not an arbitration agreement. Such clauses merely indicate a desire or hope to have the disputes settled by arbitration, or a tentative arrangement to explore arbitration as a mode of settlement if and when a dispute arises. Such clauses require the parties to arrive at a further agreement to go to arbitration, as and when the disputes arise. Any agreement or clause in an agreement requiring or contemplating a further consent or consensus before a reference to arbitration, is not an arbitration agreement, but an agreement to enter into an arbitration agreement in future.”

THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY   Arbitration Application No.141 of 2010 18-07-2011 Ms.Jain Irrigation Systems Limited,Jalgaon, Maharashtra,Joint Managing Director Shri Ajit Bhavarlal Jain Ms.Satyam Computer Services Limited, Mahindra Satyam Infocity,Madhapur, Hyderabad !COUNSEL FOR APPLICANT: Ms.C.Kodandaram, Senior Counsel COUNSEL FOR RESPONDENT: Ms.Shireen Sethana Baria :ORDER: This Arbitration Application has been taken out by the applicant … Continue reading

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