Liberal Approach in Construing Arbitration Clauses: Comment on the Louis Dreyfus Case
ICA Arbitration Quarterly, Vol. 178 (July-September, 2013)
3 Pages Posted: 1 Dec 2013 Last revised: 5 Dec 2013
Date Written: July 10, 2013
Recently, the Bombay High Court in Louis Dreyfus Commodities Asia Pte. Ltd. v. Govind Rubber Ltd. 2013(2) Arb LR 270 (Bom.) had the occasion to consider the validity of a clause purporting to refer parties to arbitration in case of disputes. The High Court adopted a liberal approach in holding the clause to be a valid arbitration clause despite the fact that the arbitration clause did not explicitly refer the parties to arbitration but merely provided that the rules of the Singalore Commodity Exchange would apply. Further, the court held that an arbitration clause existed even when one of the parties did not sign the contract. This paper analyses the decision.
Keywords: Arbitration Clause, Arbitration Agreement, Validity, Agreement by Incorporation, Arbitration and Conciliation Act 1996
JEL Classification: K10, K30, K33, K41
Suggested Citation: Suggested Citation