Arbitration Clause in Invoices Can Constitute a Valid Arbitration Agreement: Bombay High Court

The Bombay HC reviewed a case under Section 11 of the Arbitration & Conciliation Act, 1996, to decide whether an arbitration clause mentioned in invoices was legally binding.

The Petitioner, providing outdoor advertising services, included an arbitration clause in invoices issued between February 2018 and June 2019.

The Respondent made partial payments and objected to arbitration, arguing that their service confirmation letters did not mention arbitration and that an invoice alone does not form a valid arbitration agreement.

The Petitioner then approached the Court. Citing the Bennett Coleman case, the court ruled that the invoices were part of the contract and sufficiently proved the existence of an arbitration agreement. 

The Court appointed Mr. Cyrus Bharucha as a Sole Arbitrator.