Dispute Resolution & ADR Newsletter - September 2025

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.