Arbitration agreement must govern the suit dispute; clauses in unrelated invoices cannot support a Section 8 reference.

Section 8 of the Arbitration and Conciliation Act, 1996 requires a valid arbitration agreement covering the dispute before a court can refer parties to arbitration. Arbitration clauses contained in invoices for separate, unrelated transactions could not be imported into the suit transactions, because those documents did not govern the claim before the court. Mere similarity of subject matter was insufficient to satisfy Sections 7 and 8. On that basis, a reference to arbitration was held not maintainable, and the refusal to refer the suit dispute to arbitration stood.

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Issues: Whether an application under Section 8 of the Arbitration and Conciliation Act, 1996 could be allowed on the basis of arbitration clauses contained in invoices relating to unrelated transactions, when no arbitration agreement existed in respect of the suit transactions.

Analysis: A party seeking reference to arbitration under Section 8 must establish the existence of an arbitration agreement between the parties and that the agreement relates to, or governs, the dispute or subject-matter of the suit. Documents relied upon by the defendants contained an arbitration clause, but they were connected with separate and independent transactions between different parties and did not relate to the suit claim. An arbitration clause in unconnected documents cannot be imported to the suit transactions, and the mere similarity of subject matter is insufficient to satisfy Sections 7 and 8.

Conclusion: The application for reference to arbitration was not maintainable, as there was no arbitration agreement governing the suit transactions. The challenge to the refusal of reference failed.

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