Contract--Arbitration clause-Cancellation of contract-
Settlement of disputes by mutual agreement-Arbitration
clause, if survives-Award based on such clause-Validity.
HEADNOTE:
The respondents ... such a dispute must fall outside the arbitration clause,
for, if it is superseded, the arbitration clause falls with
it. The argument, therefore, that
with a valid submission to arbitration contained
in its arbitration clause, and, unless the language of the
arbitration clause is such as to exclude ... scope of arbitration clause and either party wants
that to be done. That cannot be unless the arbitration clause
survives the accord and satisfaction
scheme of the Arbitration and Conciliation Act the arbitration clause is separable from other clauses of the partnership deed. The arbitration clause constitutes an agreement ... doctrine of severability is applicable to an arbitration agreement.
Issue No. 2
Survival of the arbitration clause when the main contract perishes
36. The conclusion
made under the
Arbitration Clause. The Court has also observed that the question whether
Arbitration Clause survives or perishes, would depend upon the nature ... Arbitration clause was sought to be invoked and this
Court held that under the said clause certain matters
mentioned therein could be settled through Arbitration
invoke a clause
which perishes with the contract. [244B-C]
241
(iii) The contract being concensual, the question whether
the arbitration clause survives or perishes ... arbitration clause. nor, considered as an accord and
satisfaction, did it have that effect. He observed that an
arbitration clause stands apart from the rest
novation of a contract which states that an
arbitration clause in an agreement cannot survive if the agreement
containing the arbitration clause has been superseded
that on the analogy of the foreign jurisdiction clause in this case the arbitration clause survived until the contract was avoided and therefore the disputes ... arbitration clause could not operate. If, however, the pleas raise grounds for avoiding a contract validly entered into, the arbitration clause survived the avoidance
arbitration clause persists and even that
dispute is to be resolved in terms of the arbitration
clause contained in the agreement."
To my mind ... cited above, whether the
arbitration clause is separable and whether there is an implied
agreement that the arbitration clause will survive the expiry
scope of
arbitration clause and either party wants that to be done. That
cannot be unless the arbitration clause survives the accord and
satisfaction ... within the arbitration clause,
there can of course be no arbitration, but the reason for that would
not be that the arbitration clause has ceased
form of settlement between the
parties and hence, the arbitration clause survives.
10. That apart, it is his submission that it is a settled position ... holds that where a
contract containing an arbitration clause is substituted by
another contract, the arbitration clause perishes with the
original contract unless there
