In this article, we analyse the legal possibility of whether the
arbitration agreement, which is a part of the original contract,
can be abrogated by the parties by way of amending the contract
which will perish along with the said contract.
The Supreme Court of India (Supreme Court) in a
recent decision in the matter titled as WAPCOS Ltd. v. Salma
Dam Joint Venture and Another1 has deliberated
whether an arbitration clause can be abrogated by an amendment.
It has been held that when a party, consciously and with full
understanding executes an amended agreement, giving up all its
claims, including arbitration clause for the settlement of claims
in the future, then such a party cannot take recourse to
arbitration process or resurrect claims which have been resolved in
terms of the amended agreement.
