When the primary agreement expressly refers to another agreement, that has an arbitration clause, it doesn’t matter if the main agreement doesn’t either: The Calcutta High Court.
Title: M/S. Power Mech Projects Limited vs M/S. Bharat Heavy Electricals.
Decided on: 17 October, 2023
Writ C No. – AP 444 of 2023 And AP 449 of 2023.
CORAM: Hon’ble Justice Moushumi Bhattacharya.
INTRODUCTION
Two arbitration petitions filed by M/s. Power Mech Projects Limited against M/s. Bharat Heavy Electricals Limited (BHEL) are at the centre of this Calcutta High Court case. The two parties’ disagreement over a contract is the basis for these petitions. The appointment of an arbitrator and the inclusion of an arbitration clause in the main contract agreement are the main points of contention in this case.
FACTS OF THE CASE
In this case, two arbitration applications were submitted to the Calcutta High Court in this particular matter. These are contract-related disagreements between M/s. Power Mech Projects Limited and M/s. Bharat Heavy Electricals Limited (BHEL). Mr. S. Muralidhar was named Sole Arbitrator by the court. The key concern was the primary Contract Agreement’s integration of an arbitration clause from ancillary agreements.
COURTS ANALYSIS AND DECISION
Two arbitration petitions involving M/s. Power Mech Projects Limited and M/s. Bharat Heavy Electricals Limited (BHEL) were settled by the Calcutta High Court. It concluded that the arbitration clause was essentially incorporated by reference into the Contract Agreement and named Mr. S. Muralidhar as the Sole Arbitrator.
“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.
Written by- Kusuma R