I.

DISPUTE CLAUSE CAN BE ENFORCED IN THE RENEWED CONTRACT

(Summary of arguments)

It is submitted that dispute clause 8 in the renewed contract1 and dispute clause 152 in the old
sale contract can be enforced. As it has already been proved earlier that the renewed contract
is a mere continuation of the existing contract, Clause 8 under exhibit – 2 can be referred to
Clause 15 under Exhibit – 1 which again refers to the Indian Arbitration and Conciliation
Act, 19963. Which proves that this Honourable Tribunal has the power to entertain this case.

DISPUTE CLAUSE CAN BE ENFORCED IN THE RENEWED CONTRACT

The dispute clause 15 under the exhibit – 1 will be enforced when any dispute or differences
arises between Vasanappa Reddier and Leela Kumari out of or relating to the construction,
meaning, scope, operation or effect of this contract or the validity or a breach shall be settled
by the Indian Arbitration and Conciliation Act, 1996 and it shall be binding on the parties.
Also the dispute clause 8 under exhibit – 2 shall be enforced when any dispute or differences
arises between Mr. Vasanappa Reddier and Ms. Leela Kumari out of or relating to the
construction, meaning, scope, operation or effect of this renewal contract or the validity or a
breach shall be settled as agreed in the original sale contract by the parties.4
As it has already been proved earlier that the renewed contract is a mere continuation of the
existing contract, Clause 8 under exhibit – 2 can be referred to Clause 15 under Exhibit – 1
which again refers to the Indian Arbitration and Conciliation Act, 1996.5
ARGUENDO:
Even if the sale contract is proved to novation and the old sale contract extinguishes or ceases
to exist, doctrine of severability will apply. Doctrine of severability means part of a contract
can be severed from the main contract and will still be valid inspite of the invalidity of the
contract. Thus, by applying the doctrine of severability, dispute clause will be severed from
the main contract and it will still refer to the Indian Arbitration and Conciliation Act, 1996
which in turn gives jurisdiction to this Honourable Tribunal.

1
Exhibit – 2 (Renewal of Sale Contract)
2
Exhibit – 1 (Original Sale Contract)
3
Indian Arbitration and Conciliation Act, 1996
4
Supra Note No. 1
5
Supra Note No. 2
DISPUTE CLAUSE CANNOT BE ENFORCED IN THE RENEWED CONTRACT
(Summary of arguments)

It is submitted that dispute clause 8 in the renewed contract6 cannot be enforced. As it has
already been proved earlier that the sale contract is novation, which means the old sale
contract (exhibit – 1) is invalid. But as stated in the Clause 9 of the sale contract7, except few
clauses which are amended and included, all the other clauses under the old contract will
remain invalid. If the old contract is invalid then the dispute clause 8 cannot refer back to
dispute Clause 15. Hence, the Indian Arbitration and Conciliation Act, 1996 will not apply
and hence this Honourable Tribunal will not have the power to entertain this case
DISPUTE CLAUSE CANNOT BE ENFORCED IN THE RENEWED CONTRACT

The dispute clause 15 under the exhibit – 18 will be enforced when any dispute or differences
arises between Vasanappa Reddier and Leela Kumari out of or relating to the construction,
meaning, scope, operation or effect of this contract or the validity or a breach shall be settled
by the Indian Arbitration and Conciliation Act, 1996 and it shall be binding on the parties.
Also the dispute clause 8 under exhibit – 2 shall be enforced when any dispute or differences
arises between Mr. Vasanappa Reddier and Ms. Leela Kumari out of or relating to the
construction, meaning, scope, operation or effect of this renewal contract or the validity or a
breach shall be settled as agreed in the original sale contract by the parties.9
As it has already been proved earlier that the sale contract is novation, which means the old
sale contract is invalid. But as stated in the Clause 9 of the sale contract, except few clauses
which are amended and included, all the other clauses under the old contract will remain
invalid.10
If the old contract is invalid then the dispute clause 8 cannot refer back to dispute Clause 15.
Hence, the Indian Arbitration and Conciliation Act, 1996 will not apply and hence this
Honourable Tribunal will not have the jurisdiction.

6
Exhibit – 2 (Renewal of Sale Contract)
7
Ibid.
8
Exhibit – 1 (Original Sale Contract)
9
Supra Note No. 1
10
Supra Note No. 2