Arbitration clause survival depends on the later cancellation deed; a cancelled MoU clause did not extend to the new dispute.

An arbitration clause confined to a Memorandum of Understanding did not survive execution of a later Deed of Cancellation that expressly cancelled the MoU, limited the parties' remaining claims to what the deed provided, and contained no arbitration clause. The later deed was treated as the fresh governing agreement, so the dispute was held to arise under the cancellation deed rather than the cancelled MoU. On that basis, Section 8 reference to arbitration was refused because the earlier arbitration clause no longer applied.

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Issues: Whether the arbitration clause contained in the Memorandum of Understanding survived after execution of the Deed of Cancellation, so as to warrant reference of the dispute to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996.

Analysis: The MoU contained a limited arbitration clause confined to disputes arising out of that document. The Deed of Cancellation expressly cancelled the MoU, recorded that the parties would have no claims against each other except as provided therein, and did not contain any arbitration clause. The later document was treated as a fresh agreement superseding the earlier arrangement. In such circumstances, the dispute arose under the Deed of Cancellation and not under the cancelled MoU, so the arbitration clause in the earlier document did not survive.

Conclusion: The arbitration clause in the MoU did not survive the Deed of Cancellation, and the request for reference to arbitration was rightly rejected. The appeal failed.

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