LexStreakRead free →
Supreme Court of India· 13 March 2023

Does a mere reference to a document make its arbitration clause part of the contract?

Shinhan Bank v. Carol Info Services Limited
2023 INSC 217 · Arbitration Petition (Civil) No. 1 of 2019
Coram: Dr Dhananjaya Y Chandrachud, CJI; Pamidighantam Sri Narasimha, J.; J B Pardiwala, J.
🔖 Save this judgment🔔 Follow s.7(5) Arbitration and Conciliat…📬 Get today's judgments
View the original judgment PDFFree to read. To download it — or the LexStreak typeset copy with the headnote and Points of Law — create an account; downloads are part of the Pro plan.
Answer

No. Where there is a reference to a document in a contract, and the reference shows that the document was not intended to be incorporated in entirety, the reference will not make the arbitration clause in that document a part of the contract, unless there is a special reference to the arbitration clause so as to make it applicable.

Headnote

Arbitration and Conciliation Act 1996 — s.7(5) — s.11 — Incorporation by reference — Arbitration agreement — International commercial arbitration — Arbitration and Conciliation Act 1996 — s.7(5) — Incorporation, not mere reference — Held: Where one agreement provides that its terms shall constitute an integral part of another and shall apply mutatis mutandis, it does not merely refer to that other agreement but incorporates its terms, carrying the arbitration clause with them. (¶15, 16) Arbitration and Conciliation Act 1996 — s.7(5) — Reference short of incorporation — Held further: Where the reference shows that the document was not intended to be incorporated in entirety, the reference will not make the arbitration clause part of the contract unless there is a special reference to that clause. (¶18) Arbitration and Conciliation Act 1996 — s.11 — Pendency of a suit and Section 8 — Held further: A party is not to be relegated to a Section 8 application merely because the opposite party has instituted a suit; on clear contractual terms a reference to arbitration is necessitated. Arbitrator appointed. (¶20, 21)

In the Court's own words
Paragraph 18The principle which emerges from the provisions of Section 7(5) is elucidated in paragraph 19 of the judgment, which is extracted below:
Acts & Sections
s.7(5) Arbitration and Conciliation Act 1996s.11 Arbitration and Conciliation Act 1996s.8 Arbitration and Conciliation Act 1996

One judgment a day. That's the whole habit.

Read the full text of Shinhan Bank v. Carol Info Services Limited — and get the Supreme Court's output as a five-minute daily read, with plain-language headnotes and the questions each judgment settles.

Create my free account

Free forever plan · 30 seconds · data stays in India

Open the full judgment →

Also decided in this judgment
When does a reference carry the arbitration clause under the Arbitration Act, s.7(5)?Must a party use Section 8 of the Arbitration Act because a suit was filed?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections