In Brief
An Indian firm (Balaji Steel Trade) and a Benin company (Fludor Benin S.A.) entered into a Buyer-Seller Agreement in 2019 with an arbitration clause specifying Benin as the seat and Benin law as governing law. Later, Balaji executed separate Sales Contracts and High Sea Sales Agreements with other group entities. When disputes arose, Fludor invoked arbitration in Benin, resulting in a final award. Balaji sought Indian court appointment of an arbitrator under Section 11, arguing subsequent contracts novated the mother agreement. The Supreme Court dismissed the petition, holding that Part I of the Arbitration Act applies only to Indian-seated arbitrations; the BSA is the binding mother agreement with Benin seat; and the subsequent contracts are ancillary. It rejected the group-of-companies doctrine and found issue estoppel from prior Delhi High Court findings.
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