Arbitration Clause In Loan Agreement Becomes Incorporated In Deeds Of Guarantee When Both Form Part Of Single Transaction: Delhi HC

The Delhi High Court has ruled that a "loan agreement and deeds of guarantee form part of a single composite transaction," and that the "arbitration clause in the loan agreement becomes incorporated in the deeds of guarantee." This is a significant ruling that provides clarity on the interpretation of arbitration agreements. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence.