satyam computer services

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 →