In Brief
Coal India Limited issued the 2007 Scheme for e-auction coal distribution, which contained an arbitration clause. A buyer (Giriraj Garg) participated in e-auctions and received sale orders under this scheme, but forfeited his earnest money deposit for failing to lift coal. He sought arbitration citing Clause 11.12 of the 2007 Scheme, but the High Court rejected his application, holding that individual sale orders did not incorporate the arbitration clause. The Supreme Court allowed the appeal, holding that because sale orders explicitly referenced the 2007 Scheme's guidelines and circulars, the arbitration clause in the scheme stood incorporated into the sale orders. The phrase 'in relation thereto' in the arbitration clause encompassed all transactions under the scheme, including the sale orders at issue.
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