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Supreme Court of India 2018-02-23 dismissed

Elite Engineering and Construction (Hyd.) Private Limited rep. by its Managing Director vs Techtrans Construction India Private Limited rep. by its Managing Director

Bench: 2 — A.K. Sikri

In Brief

Elite Engineering sought arbitration with Techtrans Construction India under a subcontract for highway construction work. The subcontract lacked an arbitration clause, but Elite argued it was incorporated through general references to the main contract between Techtrans and the EPC Contractor, which contained detailed arbitration provisions. The High Court dismissed Elite's petition, holding no arbitration agreement existed between the parties. The Supreme Court affirmed, ruling that mere general reference to another contract does not incorporate its arbitration clause. Only specific, conscious acceptance of an arbitration clause—not general incorporation of other contractual terms—can create an arbitration agreement. Clauses referring to 'works and quality' do not extend to dispute resolution mechanisms.

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Arbitration and Conciliation Arbitration Agreement Incorporation by Reference Construction Contracts Dispute Resolution

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