Email and WhatsApp Communication Can Form Valid Arbitration Agreement — Delhi High Court | Sammat India Case Studies

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Email and WhatsApp Communication Can Form Valid Arbitration Agreement — Delhi High Court

The case arose out of a dispute between Belverdere Resources DMC, a UAE based company and OCL Iron and Steel Ltd. concerning a coal supply transaction. The Petitioner had filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 ("Act") seeking interim protection ahead of the arbitration proceedings before the SIAC.

One of the questions that arose was whether a binding arbitration agreement existed between the parties in absence of a physically signed contract. The Court examined a series of email and WhatsApp communications, including a draft agreement shared by the Petitioner, which included an arbitration clause. This draft was confirmed by the Respondent via WhatsApp with the message "Yes, we are good with the contract."

Ruling

The Court held that email and WhatsApp exchange between parties constituted a valid and enforceable arbitration agreement for the purposes of Section 7(4)(b) of the Act, which allows agreements to be formed through an exchange of letters, telex, telegram or other means of telecommunication.