Acceptance of Goods Under Invoice Implies Agreement to Its Terms, Including Arbitration Clause: Delhi HC

The Delhi High Court ruled that accepting goods under a tax invoice means agreeing to its terms, including the arbitration clause.

The petitioner supplied alcoholic beverages to the respondent and his son, with invoices containing an arbitration clause. 

After a cheque issued by the respondent’s son was dishonored, the petitioner filed a case under Section 138 of the Negotiable Instruments Act and later invoked arbitration under Section 11(6) of the Arbitration and Conciliation Act, 1996.

The court held that since the goods were accepted and payments were made, arbitration applied and appointed a sole arbitrator to resolve the dispute.