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The High Court of Kerala through its judgment dated 10.11.2025 in Sigmatic Nidhi Limited v. Suresh Kumar & Ors.1 affirmed that an arbitration agreement remains valid and enforceable even if it is not signed by all the parties, provided that the conduct of the parties demonstrates consensus ad idem and the existence of a written record satisfies the conditions of Section 7 of the A&C Act.
The Court held that a written arbitration agreement need not bear the signatures of all parties so long as the materials on record establish that the parties were consensus ad idem and had acted on the agreement. The Court reiterated that Section 7(4)(b) and (c) of the A&C Act expressly recognise arbitration agreements inferred from written communications or pleadings including non-denial of the existence of an arbitration agreement.
The Court further held that technical objections premised on lack of signature cannot defeat a valid commercial agreement, particularly when the party itself acknowledged the agreement and raised no objection to the appointment of an arbitrator.
Footnote
1 A.R.No.68 of 2025
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