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Single Arbitration Reference Not Possible For Disputes Arising Out Of Different Agreements

In M/S. DURO FELGUERA, S.A vs M/S. GANGAVARAM PORT LIMITED, the Supreme Court held that there cannot be a single arbitration reference for disputes arising out of different agreements, even if they are inter-linked to a single transaction.

GPL had awarded a tender work to DF and FGI, its Indian subsidiary. Later, the original contract was split up into five separate contracts, with different job descriptions. Four of such contracts were with FGI, the Indian subsidiary, and one of them was with DF. 

Each contract had a separate arbitration clause. Apart from that, DF had entered into a performance guarantee agreement with GPL for the performance of contract by FGI, which also had an arbitration clause. Later, a tripartite MoU was entered into between GPL, DF and FGI, which had listed their performance obligations with reference to the split up contracts.

 Article referred: http://www.livelaw.in/cannot-single-arbitration-reference-disputes-arising-different-agreements-sc-read-judgment/

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