SC Fortifies Principles Of Incorporating Arbitration Clause By Reference

INTRODUCTION

Recently, in the case of Giriraj Garg v Coal India Limited and Others (Civil Appeal No. 1695 of 2019 decided on 15 February 2019), the Supreme Court has fortified the principle of incorporation of an arbitration clause by reference, where the arbitration clause was contained in the standard terms and conditions referred to, in the main contract between the parties.

FACTS

Coal India Limited, issued a scheme 2007 (Scheme) whereby coal distribution would be conducted through e-auction so as to provide access to coal buyers who were unable to source it through the institutional mechanism. The Scheme provided for disputes to be adjudicated through arbitration. The arbitrator was to be appointed by the Chairman and Managing Director of Coal India Limited upon written request in this behalf.