An unsigned arbitration clause is enforceable if the
parties' conduct evidences consent
Glencore International AG v. SGM Metals
Supreme Court of India | 2025 SCC OnLine SC 1815
The Supreme Court recently held that an arbitration clause in an
unsigned contract may be valid if the parties' conduct
evidences consent. This ruling provides a significant clarification
that even an unsigned arbitration agreement can bind parties where
consent is evident through conduct and correspondence. It reduces
the risk of opportunistic avoidance of arbitration by withholding
signatures and reinforces confidence in India's pro-arbitration
stance. Businesses should ensure meticulous documentation –
through invoices, bank instruments, and communications – to
evidence consent. The decision strengthens contractual certainty
and signals that substance, not mere formality, governs arbitration
enforceability.