The Enforcebility Of Arbitration Agreements On Invoices

In a significant ruling, the Hon'ble Delhi High Court reaffirmed the principle that accepting goods under an invoice constitutes acceptance of its governing terms and conditions, including an arbitration clause. The case of Radico Khaitan Limited v. Harish Chouhan [2025: DHC:1767] highlights the enforceability of arbitration agreements and the limited scope of judicial intervention in such matters where the arbitration clause is provided in an invoice issued by the service provider.

Background

The judgement stems from a petition filed by Radico Khaitan Ltd ('Petitioner') under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking the appointment of an arbitral tribunal to adjudicate the disputes between them and an individual - Mr. Harsih Chouhan ('Respondent'). The Petitioner and Respondent were engaged in a business relationship wherein the Petitioner was supplying alcoholic beverages to the Respondent against purchase orders. In the course of