Business Law - The Legal Chamber

Supreme Court Ruling : Businesses Take Note ,Email Exchanges Can Create a Binding Arbitration Agreement

29Sep

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ruling : Businesses Take Note ,Email Exchanges Can Create a Binding Arbitration Agreement

This Supreme Court judgment reaffirms that a valid arbitration agreement can be constituted through conduct and correspondence, without a signed contract. The Supreme Court held that if parties have demonstrably acted upon the terms of an unsigned agreement, they are bound by its arbitration clause, and a referral court need only conduct a prima facie review of the agreement's existence. Facts Of The Case: The dispute arose from a proposed contract for the sale of 6,000 metric tons of zinc metal between Glencore International AG (Appellant) and Shree Ganesh Metals (Respondent No.1). The terms were negotiated via email, and Glencore sent a formal contract (No. 061-16-12115-S) incorporating an arbitration clause, which it signed. The Respondent, however, never signed this document. Despite...

Supreme Court Slashes NGT’s ₹50 Crore Fine, Rules Turnover Can’t Dictate Environmental Penalty

In this judgment, the Supreme Court curtailed the National Green Tribunal's (NGT) powers, ruling that environmental compensation cannot be arbitrarily linked to a polluter's turnover, lacking a direct nexus to the actual damage. It also held that the NGT lacks jurisdiction to direct investigations by the Enforcement Directorate under the PMLA, affirming that such actions require a scheduled offence to be registered. The Court emphasized that penalties must be determined based on established methodologies and legal principles, not rhetoric. Facts Of The Case: The case originated from a Public Interest Litigation (PIL) filed by Adil Ansari before the National Green Tribunal (NGT) in 2019 against M/s C.L. Gupta Export Ltd. The allegations were that the company, an exporter of handicraft ite...

Supreme Court Denies Specific Performance Over Tainted Agreement: Readiness to Pay Not Enough

The Supreme Court upheld the denial of specific performance, ruling that a material alteration in the sale agreement—visibly apparent from the use of different ink for a property's description—vitiated the contract. Courts are not always obligated to seek expert opinion under Section 73 of the Evidence Act when such an alteration is plainly discernible upon a mere perusal of the document itself. Facts Of The Case: The plaintiff-appellant, Syed Basheer Ahmed, entered into a sale agreement dated July 15, 1984, with the first defendant for the purchase of two properties: Item No. 1 (owned by the first defendant) and Item No. 2 (owned by a third party). The total agreed consideration was Rs. 56,000/-, with an advance of Rs. 1,000/- paid. The agreement stipulated that the sale deed was to be ...