Invoices Containing Arbitration Clauses Which Show Mutual Acceptance Are Prima Facie Arbitration Agreement: Delhi High Court

The Delhi High Court ruled that invoices containing arbitration clauses, which show mutual acceptance, can be considered prima facie arbitration agreements. In the case of M/s Dhawan Box Sheet Containers Pvt Ltd vs. M/s SEL Manufacturing Co Ltd, the petitioner supplied goods to the respondent, who defaulted on payment. The petitioner invoked arbitration, but the respondent disputed the arbitration agreement's validity. The court, referencing precedents, found that the invoices, signed by both parties, demonstrated mutual acceptance of arbitration terms. Consequently, the court appointed an arbitrator to resolve the dispute.