M/S Caravel Shipping Services Pvt. Ltd. vs M/S Premier Sea Foods Exim Pvt. Ltd.

The Supreme Court held that the arbitration clause in the Bill of Lading is binding on both parties as per Section 7(5) of the Arbitration and Conciliation Act, 1996, despite the respondent's claim that it was not signed. The Court emphasized that the inclusion of the arbitration clause in the printed terms of the Bill of Lading constituted a valid reference to arbitration, overruling the lower courts' decisions which dismissed the application for arbitration. Consequently, the Court directed that the arbitration proceedings be initiated as per the terms of the Bill of Lading.