Arbitration clause contained in invoice falls within ambit of section 7 of Arbitration and Conciliation Act, 1996

Bennett Coleman & Co. Ltd Vs MAD (India) Pvt. Ltd (Bombay High Court)

Bombay High Court held that the clause containe

d in the invoices which clearly stipulate a reference to arbitration, deserve to be construed as an arbitration clause as parties duly acted upon the invoice. Accordingly, clause squarely fall within the ambit of Section 7 of the Arbitration and Conciliation Act, 1996

Facts- The primary issue that arises for consideration in the present Arbitration Application is, whether a clause contemplating reference of disputes and differences arising out of, or in relation to a contract or order of advertisement, bill or otherwise breach thereof, to be referred to Sole Arbitrator, printed at the back of the tax invoice would amount to an arbitration clause.

Conclusion- Since in the present case, it can be clearly seen that the parties have acted upon the invoices and there was no denial of the invoices raised by the applicant, the clause contained in the invoices which clearly stipulate a reference to arbitration, deserve to be construed as an arbitration clause.

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