PRO TIP when you face a Business Conflict

Craft Clear Agreements: When an agreement is reached, ensure it's crystal clear. Clearly articulate the terms, responsibilities, and consequences. Clarity prevents future disputes and lays a solid foundation for cooperation.

Private Court Symbol
The International Court of ARBITRATION


Got any

Write to us

Share this page

Bombay High Court: Validity of Arbitration Clause in "Sales Terms and Conditions"

In a landmark ruling, the Bombay High Court recently reaffirmed the importance of arbitration clauses and their enforceability in the case of Ingram Micro India v. Mohit Raghuram. The court held that the respondent's acceptance of the arbitration clause, as stated in the "Sales terms and conditions," through the execution of a Know Your Customer (KYC) form, rendered it legally binding. Furthermore, the court emphasized that both parties had acted upon these terms and conditions for a substantial period, thereby establishing the existence of an arbitration agreement. This article provides a comprehensive analysis of the case, delving into the court's rationale and examining the wide-ranging implications of this significant ruling.
Background of the Case:

The dispute in question arose from a business arrangement between Ingram Micro India, a prominent company in the technology distribution sector, and Mr. Mohit Raghuram. The contractual relationship between the parties was governed by terms and conditions that included an arbitration clause. This clause specifically stipulated that any disputes arising between the parties would be resolved through arbitration, thereby bypassing traditional litigation methods.

The Court's Analysis and Rationale:

The Bombay High Court conducted a meticulous analysis of the case, focusing on the validity and enforceability of the arbitration clause in question. In its assessment, the court placed great importance on the respondent's execution of a KYC form, which explicitly referred to and incorporated the "Sales terms and conditions." By signing this form, Mr. Mohit Raghuram effectively acknowledged and accepted the terms and conditions, including the arbitration clause, thus establishing a binding contractual relationship.

The court further underscored the significance of the parties' conduct in substantiating the validity of the arbitration clause. It highlighted the fact that both parties had consistently acted in accordance with the terms and conditions for a considerable period, without raising any objections or contesting the enforceability of the arbitration clause. This consistent course of action demonstrated their shared intent to be bound by the terms of the agreement, including the provision for arbitration.

Implications of the Ruling:

The ruling in the Ingram Micro India v. Mohit Raghuram case carries far-reaching implications for both the business and legal communities, particularly in the context of arbitration agreements. The court's emphasis on the respondent's acceptance of the arbitration clause through the execution of the KYC form underscores the critical importance of carefully reviewing and comprehending the terms and conditions before entering into any contractual relationship. It serves as a poignant reminder that individuals and entities should be fully cognizant of the legal consequences that may arise from their actions.

This ruling also underscores the principle of party autonomy in arbitration. By highlighting the parties' consistent adherence to the terms and conditions over an extended period, the court underscores their intent to be bound by the agreement they voluntarily entered into. This approach firmly upholds the fundamental principle that parties should be afforded the freedom to select their preferred dispute resolution mechanism, including arbitration, as long as their consent is clear and unambiguous.

Moreover, this ruling reinforces the stability and predictability of arbitration as an effective means of resolving commercial disputes. By encouraging parties to respect and abide by the terms of their agreements, it alleviates the burden on an already overloaded judicial system and promotes efficient dispute resolution. The court's decision firmly establishes the reliability and efficacy of arbitration in achieving just outcomes.

Furthermore, the ruling highlights the need for parties to consider the long-term implications of their actions and decisions. In the case at hand, the fact that both parties had actively operated under the terms and conditions for a substantial period of time played a pivotal role in the court's decision. This underscores the importance of parties honoring the commitments they have made and abiding by the agreed-upon terms, thereby fostering trust and cooperation in business relationships.

The ruling also sets a precedent for the legal community, providing guidance in future cases involving arbitration agreements. It emphasizes the significance of assessing the intentions of the parties based on their actions and conduct, rather than solely relying on formalistic interpretations of contractual terms. This approach recognizes the evolving nature of business relationships and the need to adapt legal frameworks accordingly.


The Ingram Micro India v. Mohit Raghuram case establishes a significant legal precedent, reaffirming the importance of thoroughly reviewing and accepting the terms and conditions of a contract, including arbitration clauses. The Bombay High Court's ruling affirms the binding nature of such clauses when parties have actively operated under them for a substantial period. This decision upholds the principles of party autonomy, promoting the credibility and efficacy of arbitration as an alternative method of dispute resolution.

By emphasizing the respondent's acceptance of the arbitration clause through the execution of the KYC form, the court highlights the need for parties to be fully aware of the implications of their actions. The ruling also underscores the stability and predictability of arbitration, while encouraging parties to respect and abide by the terms of their agreements, thereby reducing the burden on the judicial system and promoting efficient dispute resolution.

The Ingram Micro India v. Mohit Raghuram case stands as a significant legal milestone, with implications that extend beyond the immediate parties involved. It underscores the importance of comprehensive contract review and the need for parties to honor their commitments. By setting a precedent for future arbitration-related cases, this ruling provides valuable guidance to the legal community and reinforces the trust and confidence in arbitration as a reliable mechanism for resolving commercial disputes.

References Case:

Ingram Micro India v. Mohit Raghuram