Arbitration & Mediation (ADR) Course Preview
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<p class="banner-heading-text-three-line"><span>Cases and assignments: Chloro Controls(I) P.Ltd vs Severn Trent Water Purification Inc
</span><br><span class="banner-sub-heading">Course 2: Navigating Arbitration Proceedings</span></p>
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<p><span class="padded-dropcap">I</span>ssue: The parties signed multiple agreements, some of which contained an arbitration clause and some of which did not. The parties disagreed about whether the disputes arising from all of the agreements had to be resolved by arbitration.</p>
<p>Arguments: One party argued that the multiple agreements were part of a single transaction and that all of the disputes had to be settled by arbitration. They argued that Section 45 of the Arbitration and Conciliation Act, 1996 required the court to refer parties to arbitration when an arbitration agreement existed. The other party argued that the agreements had to be treated separately, and only the disputes arising from the agreements with arbitration clauses could be arbitrated.</p>
<p>Court's Analysis: The court agreed with the first party. They determined that the multiple agreements were part of a single, composite transaction and that the arbitration clause in the main agreement covered all of the disputes. The court also cited Section 45's "non-obstante" clause, which means that it overrides other procedural laws, to support their decision that the disputes should all be resolved by arbitration.</p>
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<p class="banner-heading-text-three-line"><span>Cases and assignments: Enercon India Ltd And Ors vs Enercon Gmbh And Anr
</span><br><span class="banner-sub-heading">Course 2: Navigating Arbitration Proceedings</span></p>
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<p><span class="padded-dropcap">I</span>ssue: One party argued that an arbitration agreement was invalid because the main contract was not concluded. They also argued that the arbitration clause was "unworkable" because it did not specify how the third arbitrator would be chosen.</p>
<p>Arguments: One party claimed that the lack of a concluded contract invalidated the arbitration clause. They also argued that the arbitration clause was unworkable and therefore the matter could not be referred to arbitration under Section 45 of the Indian Arbitration Act, 1996. The other party argued that even if the contract was not concluded, the parties clearly intended to arbitrate.</p>
<p>Court's Analysis: The court cited Section 7 of the Indian Arbitration Act, 1996 to demonstrate that a valid arbitration agreement can exist even without a finalized contract. They determined that there was a clear intention to arbitrate and that the court was only concerned with the arbitration agreement. They also found that the arbitration clause could be made workable by supplying the missing element using provisions from the Indian Arbitration Act, 1996. They used Sections 10 and 11 to show that the court can fix a vague arbitration clause in order to make sure arbitration is successful.</p>
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<p class="banner-heading-text-two-line"><span>Cases and assignments: Problem Solving
</span><br><span class="banner-sub-heading">Course 2: Navigating Arbitration Proceedings</span></p>
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<p><span class="padded-dropcap">Q</span>uestion: Two parties sign a Memorandum of Understanding (MOU) to explore a potential business partnership. The MOU contains an arbitration clause. Later, the parties draft a formal contract but disagree on certain terms, and the contract is not finalized. One party files a lawsuit alleging that the other party breached the terms of the MOU. Can the court refer the parties to arbitration?</p>
<p>Answer: Likely yes. Based on the precedent set in Enercon India Ltd And Ors vs Enercon Gmbh And Anr, the court could find that the arbitration agreement in the MOU remains valid even though the final contract was not concluded. The existence of a legal relationship and the clear intention to arbitrate, as expressed through the arbitration clause in the MOU, would likely be sufficient for the court to refer the parties to arbitration.</p>
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