Section 9 arbitration proceedings permit a final finding on agreement existence, but correspondence must show consensus ad idem on material terms.

In a section 9 proceeding under the Arbitration and Conciliation Act, 1996, the court may finally determine whether an arbitration agreement exists and whether the dispute falls within its scope. A written arbitration agreement may arise from exchanged correspondence even without signatures, but only if the parties were ad idem on all material terms. Where the correspondence shows continuing negotiations on an important term, such as royalty for the period between termination of an earlier arrangement and execution of a proposed agreement, no concluded contract or independent arbitration agreement is established. On the record, the documents and subsequent conduct did not show final settlement of that term, so the claim based on an arbitration clause failed.

---

---

Issues: Whether, in proceedings under section 9 of the Arbitration and Conciliation Act, 1996, the court can decide the existence of an arbitration agreement and whether the exchanged correspondence established a concluded contract containing a binding arbitration clause.

Analysis: A petition under section 9 is a civil proceeding in which the court has jurisdiction to determine, as an issue, whether an arbitration agreement exists and whether the dispute falls within its scope. Such a finding is not merely prima facie and cannot be left open for consideration in later proceedings. An arbitration agreement may be in writing without signatures if the terms are evidenced by correspondence, but the correspondence must show that the parties were ad idem on the material terms. On the record, the parties were still negotiating important terms, especially royalty for the period between termination of the earlier arrangement and execution of the proposed agreement. The documents and subsequent conduct did not show that this material term had been finally settled or that an independent arbitration agreement had been concluded by exchange of letters.

Conclusion: The court held that there was no concluded agreement in writing and no independent arbitration agreement established by the correspondence; the appellant's contention failed.

Ratio Decidendi: In a section 9 proceeding, the court may finally determine the existence of an arbitration agreement, and correspondence constitutes an arbitration agreement only when it shows consensus ad idem on all material terms of the contract.

---