Case Note & Summary
The applicant, Ingram Micro India Pvt. Ltd., a distributor of computer products, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitral tribunal to resolve disputes with the respondent, Mohit Raghuram Hegde, proprietor of Creative Infotech, regarding non-payment of dues under various invoices. The applicant contended that the arbitration agreement was contained in the 'Sales terms and conditions' available on its website www.imonline.co.in, which the respondent had consciously accepted, and also in the invoices raised by the applicant. The respondent opposed the application, arguing that there was no valid arbitration agreement as the terms were not specifically agreed upon. The court examined the facts and found that the respondent had accepted the invoices and acted upon them, thereby accepting the terms and conditions including the arbitration clause. The court held that a valid arbitration agreement existed between the parties and allowed the application, appointing a sole arbitrator to adjudicate the disputes.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - Dispute pertained to non-payment of dues under invoices - Applicant sought appointment of arbitrator based on arbitration clause in Sales Terms and Conditions on website and invoices - Court examined whether arbitration agreement existed - Held that the respondent's conduct in accepting invoices and continuing business constituted acceptance of the arbitration clause, thus a valid arbitration agreement exists (Paras 1-10).
Issue of Consideration
Whether there exists a valid arbitration agreement between the parties so as to warrant appointment of an arbitral tribunal under Section 11 of the Arbitration and Conciliation Act, 1996.
Final Decision
The court allowed the application and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Arbitration agreement
- Section 11 of Arbitration and Conciliation Act
- 1996
- existence of arbitration agreement
- acceptance of terms through conduct
- web-based terms and conditions
- invoices containing arbitration clause
