Arbitration clause covers contract disputes; prior foreign proceedings do not bar reference to arbitration in India.

The buyers' agreement contained a broad arbitration clause covering disputes arising out of or in relation to the contract, including breach, termination, interpretation and liability. The petitioner's claims of non-payment, cancellation of orders, breach of contractual restrictions and compensation therefore fell within that clause. Prior foreign proceedings did not displace the agreed arbitral remedy in India where Delhi was the stipulated venue. The petition was maintainable, the disputes were referred to arbitration, and a sole arbitrator was appointed to adjudicate them.

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Issues: Whether, in the presence of an arbitration clause in the Buyers Agreement, the disputes between the parties had to be referred to arbitration and a sole arbitrator appointed under Section 11 of the Arbitration and Conciliation Act, 1996.

Analysis: The agreement contained a clear arbitration clause covering disputes arising out of or in relation to the agreement, including breach, termination, interpretation, and liability issues. The disputes raised by the petitioner concerned alleged non-payment, cancellation of orders, breach of contractual restrictions, and compensation claims, all of which fell within the scope of the arbitration clause. The existence of prior foreign proceedings did not exclude the contractual arbitral remedy in India where the agreement stipulated Delhi as the venue of arbitration.

Conclusion: The petition was maintainable and the disputes were held to be referable to arbitration. A sole arbitrator was appointed for adjudication of the disputes between the parties.

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