CS Professional · Arbitration, Mediation and Conciliation · Emerging Aspects: Fast Track and Virtual Arbitration
Ishaan Pharma and Rohan Chemicals exchanged WhatsApp and email messages that record their agreement to refer a payment dispute to arbitration. Neither signed a single document. Is there a valid arbitration agreement in writing?
Yes, a valid written arbitration agreement exists. Section 7(4)(b) treats an exchange of communications through electronic means that provides a record of the agreement as writing, so a single signed document is not mandatory and no statement of claim is needed.
- ANo, because only a document signed by both parties qualifies
- BNo, because electronic messages are not recognised
- CYes, because an exchange of communication through electronic means that provides a record of the agreement is treated as writingCorrect
- DYes, but only if a statement of claim has also been filed
Explanation
Section 7(4)(b) says an agreement is in writing if contained in an exchange of letters, telex, telegrams or other means of telecommunication, including communication through electronic means, which provide a record of the agreement. A signed document is only one of the routes.
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