Arbitration in Invoices Valid Despite Absence in Purchase Orders
The purchase orders issued by the respondent for imported coal supply did not provide for arbitration but the tax invoices of the applicant contained arbitration clause.
Purchase Order is the primary contract between parties. However, the arbitration clause is reflected in the emails providing quotations, delivery challans and the tax invoices. The purchase orders were issued in response to the quotations of the applicant. The delivery challans and tax invoices are acknowledged without any dispute or protest about arbitration clause. Many of the invoices are paid. The disputes pertains to the non-payment of dues of certain invoices.
mere absence of arbitration clause in Purchase Orders cannot be a reason for inferring that parties did not intend to resolve disputes through arbitration. By acknowledging the Delivery Challans and Tax Invoices and by making payments against the invoices containing arbitration clause the Respondent has agreed for resolution of disputes through the mechanism of arbitration. The intention of parties to arbitrate can thus easily be gathered in the facts of the present case. Even otherwise, the order passed by the Supreme Court setting aside the judgment of this Court in the Concrete Additives and Chemicals leaves no manner of doubt that absence of arbitration clause in Purchase Order does not nullify the arbitration clause printed in the Delivery Challans and Tax Invoices.
Judgment dated 5.5.2026 of the High Court of Bombay in Commercial Arbitration Application No.93 of 2026 of Hitesh Coal Traders Vs. Indapur Dairy & Milk Product Ltd.
