Section 11 of Arbitration Act – Place of Arbitration – Delivery challans Vs. Purchase order –

Section 11 of Arbitration Act – Place of Arbitration – Delivery challans Vs. Purchase order –

Judgment dated 4.10.2023 in Commercial Arbitration Application No.22 of 2023 in the case of RAC Infra Rental LLP Vs. Karvy Digikonnect Limited and others

The applicant had given various IT hardware equipments such as computers, laptops, etc.   on rent to the respondent no.1.   However, the respondent no.1 did not pay the amounts. 

The applicant invoked arbitration clause “U” in the delivery challans vide notice dated 7.10.2021 and the place of arbitration at Mumbai.   However, the respondent no.1 relied on the purchase order for place of arbitration at Hyderabad.

Delivery challan signed by authorised of respondent no.1 contained clause U for arbitration and Mumbai as place of arbitration.   Purchase order of the respondent no.1 also contained arbitration but Hyderabad as place of arbitration.   Purchase order being a unilateral document cannot prevail arbitration clause of delivery challans.