A clause giving supervisory power to third party with respect to disputes not amounts to Arbitration Agreement

Innovators Facade Systems Ltd Vs Larsen & Toubro Limited (Madras High Court) Conclusion: Where the parties have agreed to give only supervisory powers to a third party with respect to the disputes arising between them, and a clause which does not disclose the intention of the parties to give any adjudicatory powers to the third party, does not qualify as an ‘arbitration agreement’, as defined under Section 2(1)(b) read with Section 7 of Arbitration and Conciliation Act, 1996. Held: Assessee-company contended that clause 38 was an arbitration agreement between the parties, where...