In determining whether there is an arbitration agreement, the terms of the contract between the parties must be read as a whole | Conditions must be satisfied by a valid arbitration agreement – Solaris Chem Tech Industries Ltd. Vs. Assistant Executive Engineer Karnataka Urban Water Supply and Drainage Board & Anr. – Supreme Court
Hon’ble Supreme Court held that:
(i) The agreement must be in writing, as stipulated by sub-section (3) of Section 7;
(ii) Parties should have agreed to refer any disputes, present or future, between them to an arbitral tribunal;
(iii) The arbitral tribunal should be empowered to adjudicate upon the disputes in an impartial manner giving due opportunity to the parties; and
(iv) The parties should have agreed that the decision of the tribunal would be binding between them.
(v) The provision for settlement of disputes which is contained in Clause 11 does not constitute the Chief Engineer as an arbitral tribunal since he cannot be regarded as an impartial officer nor do the provisions of Clause 11 incorporate the trappings of an arbitral tribunal.
