Scope of wide arbitration clauses and implied reference to all contract disputes
When an arbitration clause is cast in wide and comprehensive language covering any dispute or difference relating to any matter arising out of or connected with the agreement, the constitution of the arbitral tribunal operates as an implied reference of all arbitrable disputes arising under that contract. An appointment of an arbitrator under Section 11 or under the agreed appointment procedure does not require the judicial authority or the parties to frame an exhaustive, static catalog of referred disputes. Once properly constituted under a broadly phrased clause, the tribunal possesses plenary authority to entertain and decide all unresolved claims, additional claims, and counterclaims raised by either party in their pleadings, unless the arbitration agreement explicitly restricts the tribunal's remit to decide only specific, isolated questions referred to it. (M/s Bhagheeratha Engineering Ltd. Vs State of Kerala | 2026 INSC 4)