VidhiSangh

Supreme Court of India · 19/03/2024

NBCC (INDIA) LIMITED versus ZILLION INFRAPROJECTS PVT. LTD.

[2024] 3 S.C.R. 812 · 2024 INSC 218

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Summary

A general reference to another contract’s terms did not incorporate its arbitration clause into the parties’ separate agreement. This was a two-contract arrangement, unlike acceptance of standard conditions within a single contract. The letter of intent also expressly required dispute redress only through Delhi civil courts, demonstrating the parties’ contrary intention. With no incorporated arbitration agreement, the High Court’s appointment of a sole arbitrator under Section 11(6) was set aside and the appeals allowed.

Issues

  1. Whether the letter of intent incorporated the upstream contract’s arbitration clause under Section 7(5).
  2. Whether the standard-form exception applied to this two-contract arrangement.
  3. What effect the express civil-court-only dispute provision had on the arbitrator appointment.

Provisions considered

Held

Result

Appeals allowed without costs. High Court orders allowing the Section 11(6) application and appointing a sole arbitrator quashed; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2024] 3 S.C.R. 812.