Case Note & Summary
The case involves an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging a judgment dated 9 June 2015 passed by a learned Single Judge. The appellant, Waverley Private Limited, was the original respondent in the arbitration, and the respondent, Diversey India Private Limited, was the original claimant. The dispute arose from a distribution agreement where the appellant acted as a distributor for the respondent in Sri Lanka. Prior to June 2005, there was no written agreement. On 14 June 2005, a written distribution agreement was executed containing an arbitration clause. The respondent claimed USD 37,505.60 for goods supplied under invoices, which the appellant disputed. The arbitral tribunal, in its award dated 4 May 2012, held that it had no jurisdiction to entertain the claim for the invoiced amount, reasoning that the invoices were not part of the agreement. The respondent filed a petition under Section 34 of the Act, which was allowed by the learned Single Judge, setting aside the tribunal's finding on jurisdiction. The appellant appealed. The High Court, after considering the submissions, upheld the Single Judge's order, holding that the arbitration clause was broad enough to cover disputes arising from the invoices, as they were in connection with the distribution agreement. The court emphasized that the tribunal's interpretation was erroneous and that the jurisdiction clause must be construed liberally. The appeal was dismissed, and the matter was remitted to the arbitral tribunal for adjudication on merits.
Headnote
A) Arbitration Law - Jurisdiction of Arbitral Tribunal - Section 34, Section 37 Arbitration and Conciliation Act, 1996 - The issue was whether the arbitral tribunal had jurisdiction to decide claims arising from invoices under a distribution agreement. The court held that the arbitration clause covered all disputes arising out of or in connection with the agreement, including the invoices, and set aside the award's finding on lack of jurisdiction. (Paras 2-22)
Issue of Consideration
Whether the arbitral tribunal had jurisdiction to entertain the claim for USD 37,505.60 based on invoices under the distribution agreement.
Final Decision
The appeal is dismissed. The order of the learned Single Judge dated 9 June 2015 is upheld. The arbitral tribunal is directed to proceed with the adjudication of the claim on merits.
Law Points
- Arbitration
- Jurisdiction of Arbitral Tribunal
- Section 34 of Arbitration and Conciliation Act
- 1996
- Section 37 of Arbitration and Conciliation Act
- Interpretation of Arbitration Clause
