Supreme Court: Arbitration clauses outlive terminated contracts

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Supreme Court: Arbitration clauses outlive terminated contracts
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In the recent case of Magma Leasing & Finance Ltd v Potluri Madhavilata, the Supreme Court was asked to decide whether an arbitration agreement in a contract that had been terminated due to a breach survives for the purpose of resolving disputes relating to the original contract. The court held that the arbitration clause would survive, even though the agreement had been terminated. In making the ruling, it overturned an earlier decision by Andhra Pradesh High Court.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Please note that the item titled “Google search sparks trademark trouble” was contributed by Nishith Desai Associates, a Mumbai-based law firm. Readers should not act on the basis of this information without seeking professional legal advice.

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