Arbitration and Legal Principles of Severability

Arbitration and Legal Principles of Severability

In case of A.N. Traders Pvt Ltd v. Shriram Distribution Services Pvt Ltd [2018] GCtR 6451 (Delhi) it is held that "though the Arbitration Agreement is an Agreement which is severable in nature and independent of the main Contract, the disputes between the parties that are not covered by the main Agreement could not be adjudicated through the process of arbitration."

"Though an Arbitration Agreement, being an independent agreement, would survive the termination of the main Agreement of which it is a part, at the same time it cannot be put in service for adjudicating the disputes that have not arisen under or in relation to such main Agreement but have arisen between the parties post such Agreement, even though the post Agreement “arrangement” may have been between the parties on similar terms and conditions as contained in the main Agreement."