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Thursday, October 16, 2008

arbitration clause

This appeal is directed against the Judgment and order for appointment of an Arbitrator on the ground that no Arbitration Clause was in existence between the parties.

It was held by the learned Addl. District Judge, that since the photocopy of the proposed agreement bears the signature of only the appellant and not that of the PGI, it could not be held that an arbitration agreement was executed between the parties and since there was no signature of the PGI on the said agreement, which was sent after signature of the appellant, remained only as an offer.

We may reiterate that in this case admittedly the documents which are on record apparently show supply of the material by the appellant to the PGI and acceptance thereof by the PGI in pursuance of the tender enquiry by them wherein tender of the appellant containing the arbitration clause was admittedly accepted by the PGI. Accordingly, we hold that arbitration agreement did exist and, therefore, dispute between the parties would be referred to an
Arbitrator for decision.


Therefore, considering the above aspects of the matter in this case, we must come to this conclusion that although no formal agreement was executed, the ender documents indicating certain conditions of contract contained an arbitration clause. It is also an admitted position that the appellant gave his tender offer which was accepted and the appellant acted upon it.

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