The Clause Under The Purchase Order Shall Prevail On Conflicting Arbitration Clauses In Purchase Order And Invoices

Introduction

Parekh Plastichem Distributors LLP ("Applicant") filed an Application¹ under Section 11 of the Arbitration and Conciliation Act, 1996 ("Act") before the Hon'ble Bombay High Court ("Bombay High Court / Hon'ble Court") for the appointment of an arbitrator relying on the arbitration clause in the invoices. As per the invoices the Courts in Mumbai had exclusive jurisdiction and the venue of arbitration was Mumbai. Simplex Infrastructure Limited ('Respondent"), relying on the arbitration clause in the purchase orders objected to the jurisdiction and the venue of arbitration.

Facts

1. The Applicant had supplied Callipar brand Micro Silica to the Respondent as per the purchase orders. Consequently, the Applicant raised invoices for the said supplies. However, after receiving part payments, the Respondent defaulted in payment of Rs. 21,78,910. Even though Applicant sent several reminders and notices, the Respondent failed to clear the outstanding dues.