Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Arbitration Clauses Require Explicit Reference In Subsequent Agreements: Delhi High Court
The Delhi High Court ruled that an arbitration clause in a contract must be explicitly referenced in any subsequent agreements to be enforceable. The court noted that the second agreement between Deepa Chawla and Raheja Developers Ltd. explicitly excluded the arbitration clause, focusing instead on specific terms for refund and possession. Therefore, the court dismissed the defendant's application for arbitration under the original agreement. This decision underscores the necessity for clear references to arbitration clauses in related but separate contracts to maintain their enforceability.