AIR 2016 SUPREME COURT 3974 ::2016 (6) ADR 350 ::(2017) 2 ArbiLR 86 ::2016 (10) SCC 813 ::(2016) 8 Scale 225 ::AIR 2016 SC (Civil) 2978 ::2017 (123) ALR SOC 13 (SC) ::(2016) 7 Mad LJ 306 ::2016 (4) KCCR SN 507 (SC) ::2017 (174) AIC (SOC) 21 (SC)

Supreme Court Of India

Hon'ble Judge(s): J. Chelameswar, Abhay Manohar Sapre , JJ

(A) Arbitration and Conciliation Act (26 of 1996) , S.45— Reference to arbitration - Arbitration agreement to which New York convention applies - Agreement between American and Indian company (Agreement 1) - Another agreement by American company with another Indian company which is fully owned subsidiary of American company (Agreement 2) - Rights and obligations flowing out of Agreement 2 which is substantive contract between three parties are interdependent - Stipulation regarding governing law in agreement No. 2 cannot be said to be an agreement between only two Indian companies - Whether such stipulation is hit by S. 23 of Contract Act and two Indian companies whether can make an agreement so as to confer jurisdiction on Indian Courts to refer parties to arbitration in London - Cannot be examined u/S. 45 - Scope of enquiry u/S. 45 does not extend to examination of legality of substantive contract. An arbitration agreement is an independent or 'self contained' agreement. In a given case, a written agreement for arbitration could form part of another agreement, described by Lord Diplock as the 'substantive contract' by which parties create contractual rights and obligations. Notwithstanding the fact that all such rights and obligations arising out of a substantive contract and the agreement to have the disputes (if any, arising out of such substantive contr....