Calcutta High Court Upholds Arbitration Clause In Purchase Order: Super Smelters Ltd. v. Universal Cables Ltd.

Introduction

In Super Smelters Limited v. Universal Cables Limited, the Calcutta High Court addressed the enforceability of an arbitration clause embedded in a purchase order and ruled on the appointment of a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. The key issue was whether the arbitration clause in purchase order remained binding despite a jurisdiction clause in a subsequent tax invoice.

Background of the case

The Petitioner floated a tender, inviting quotations for design, manufacture, supply, testing and commissioning of capacitor power factors improvement for its plant at Jamuria. The Respondent participated in the tender and accordingly, a purchase order bearing no. P119Y-00458 was issued in favour of the Respondent.