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Sundaram Finance Ltd vs Nepc India Ltd on 13 January, 1999

19. The decision of the Hon ble Division Bench in the matter of Nazir Hussain Films Pvt. Ltd. (supra) will not be of much assistance to the respondents in the present case. The facts of the said judgment are completely different from the facts in the present matter. In the matter of Nazir Hussain Films Pvt.Ltd. (supra) as correctly submitted on behalf of the petitioner inspite of the specific ::: Downloaded on - 09/06/2013 14:45:10 ::: 71 pleadings that the case was based on a written agreement the appellants therein during arguments contended to the contrary by submitting that their case was not based on arbitration agreement but was based on the arbitral clause contained in the correspondence exchanged between the parties (in terms of section 7(4)(b) of the Arbitration and Conciliation Act, 1996). It was held by the Hon ble Division Bench that from the pleadings, no conclusion could be drawn that it was the case of the petitioner that the correspondence exchanged between the parties resulted into an arbitration agreement. Keeping in mind the facts of that case, in paragraph 14 of the said judgment, the Hon ble Division Bench has referred to certain English authorities and the principles derived therefrom have been summarized. The Hon ble Division Bench observed The very fact that the ::: Downloaded on - 09/06/2013 14:45:10 ::: 72 appellants contend that there is an arbitral agreement evidenced by communication upto 10th March 2006 must negate the contention that there was a concluded agreement on 8th May 2006 . It was held by the Hon ble Division Bench that there was no concluded agreement from the correspondence and that merely because there was an arbitral clause in the documents exchanged and there was no dispute about the arbitral clause it would not result in holding that there was a contract containing an arbitral clause. In the present case, there is an agreement executed between the parties. As stated aforesaid, the parties have not made the agreement dependent upon any terms to be agreed upon in future. The parties are ad idem on the terms of the contract including the arbitral clause. The consent of the parties to be bound by the agreement upon execution is clear from ::: Downloaded on - 09/06/2013 14:45:10 ::: 73 clause 16 of the said agreement. The decision in Nazir Hussain Films Pvt. Ltd.
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