Arbitration
An unsigned arbitration clause can still bind parties who act on the contract
What the Court held
In Glencore International AG v. M/s Shree Ganesh Metals (Supreme Court of India, 05.08.2025; 2025 LiveLaw (SC) 839), a Bench of Justices Sanjay Kumar and Satish Chandra Sharma held that an arbitration agreement, though it must be in writing under Section 7 of the Arbitration and Conciliation Act, 1996, need not be signed. Where the parties show their consent through correspondence, invoices and performance, the arbitration clause binds them. The supplier had delivered the goods and raised invoices referring to the contract, though the buyer had not signed it.
Why it matters
Consent, not signature, is the cornerstone of arbitration. The Court set aside a High Court order that had found no arbitration agreement existed and held that refusing to refer the dispute to arbitration was unsustainable. For commercial parties, the decision confirms that conduct under an unsigned contract, accepting delivery, paying, or invoicing against it, can be enough to be held to its arbitration clause.
This note is general information on the law as at the date shown, not legal advice on any specific matter. The law changes; for advice on your facts, please speak to the firm.
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