Arbitration Clause In Master Agreement Extends To An Integral Subsequent Agreement Without A Separate Arbitration Clause: Unthinkable Solutions LLP V Ejohri Jewels Hub Pvt Ltd*

The Delhi High Court appointed an arbitrator under the arbitration clause in a Master Services Agreement (MSA), even though the dispute arose from a subsequent agreement that did not contain an arbitration clause.

Background

Unthinkable Solutions entered into a MSA with Ejohri Jewels for software development services. Disputes arose under a Statement of Work (SOW) issued under the MSA. Disputes arose and Unthinkable Solutions commenced arbitration.

Ejohri Jewels contended that the Master Agreement was unsigned and therefore not binding, and that the disputes arose under the SOW, which did not contain an arbitration clause. Unthinkable Solutions submitted a signed copy of the Master Agreement and presented correspondence which it said demonstrated that the SOW was an integral part of the Master Agreement.