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Supreme Court of India 2018-10-29 allowed

Caravel Shipping Services Pvt. Ltd vs Premier Sea Foods Exim Pvt. Ltd

Bench: 2 — R.F. Nariman

In Brief

A shipping company (Caravel Shipping) and a seafood exporter (Premier Sea Foods) disputed whether arbitration clauses printed in a multimodal transport document (Bill of Lading) were binding. When Premier filed a recovery suit, Caravel sought to stay proceedings under the arbitration clause. The lower courts rejected this, saying unsigned printed clauses weren't binding. The Supreme Court allowed Caravel's appeal, holding that where a Bill of Lading expressly states parties agree to all printed terms, arbitration clauses are binding. The Court rejected the respondent's argument that signatures were required, noting that writing—not signatures—is the legal requirement. A party cannot selectively rely on an unsigned contract while denying its adverse clauses.

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Arbitration Commercial Contracts Bill of Lading Maritime Law Contract Interpretation Procedural Law

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