Interpretation And Enforcement Of Parallel Arbitration Clauses

INTRODUCTION:

The Hon'ble Supreme Court of India ("SC"/"Apex Court") in one of its most recent judgment laid down the law on interpretation and enforcement of parallel arbitration clauses. In the case of Balasore Alloys Ltd. Vs Medima LLC¹ decided on 16.09.2020, the Apex Court held that in such a situation, principle of harmony and reconciliation should be used as to determine as to which of the clauses would be relevant. In this case, the SC was faced with a situation where there were following two arbitration clauses:

1. Clause 23 in the Agreement dated 31.03.2018 ("Main Agreement" /Pricing Agreement"), which reads as under:
2. 1. GOVERNING LAW; DISPUTES
   2. This Agreement shall be governed by and construed in accordance with the laws of the United Kingdom. Any claim, controversy or dispute arising out of or in connection with this Agreement or the performance hereof, after a thirty calendar day period to enable the parties to resolve such dispute in good faith,