Arbitration In IndiaPendency of signature will not preclude Arbitration

Vedanta Limited v. Gujarat State Petroleum Corporation Ltd.

Court – Delhi High Court

Citation – ARB.P. 853/2023 & I.A. 20643/2023

Date – 28.07.2025

The Hon’ble Delhi High Court has held that Parties cannot be precluded from Arbitration if there is mere pendency of formal signature by one party and the other party has already signed the terms and acted upon it.

The Court held,

“26. Applying the said law to the facts of this case, the signed and duly filled copy of the GSA was supplied to the Respondent mentioning the effective date, the price of the gas and the volume of the gas. The price, volume and the effective date was virtually agreed upon by the parties while accepting the RFP, as is clear from the e-mail dated 18.01.2023. Immediately after conclusion of the contract. The signed and filled copy of the GSA sent by the Petitioner to the Respondent was only to be formally signed by the Respondent. The GSA had already been read, understood and confirmed by the Respondent. The fact that the Respondent herein submitted Forms C1 & C6 would mean that it agreed to the various terms and conditions of the GSA, which also contained Arbitration clause.

31. This Court is of the opinion that on the conclusion of the RFP, wherein the Respondent herein had made its bid 46 times after having read and understood the RFP and the GSA, and after giving a declaration in form C1 & C6 that they would start the offtake of the natural gas volume allocated at the end of the e-auction as per the terms and conditions set out in the RFP and the GSA, and after one party having signed the GSA and only a mere formality being left for the other party to sign the GSA, this Court is of the opinion that there is a prima facie existence of an Arbitration Agreement between the parties which is sufficient for this Court to refer the parties to Arbitration in terms of the GSA.”

Team AMLEGALS.

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