The Delhi High Court has held that an arbitration clause in an earlier agreement remains binding on the parties even after they enter into subsequent agreements which do not contain an
arbitration clause.
Facts
The parties entered into 2 agreements for the lease of premises. Differences arose between them which were settled by way of settlement agreements. One of the parties failed to honour its
obligations under the settlement agreements and the aggrieved party invoked arbitration under the lease agreements.
This was opposed on the grounds that: (i) the lease agreements containing the arbitration clause had expired, and (ii) the disputes between the parties were governed by the settlement
agreements, which were independent contracts devoid of any arbitration clause.
