Hirani Developers v. Nehru Nagar Samruddhi Co‑operative Housing Society Ltd. 2026 INSC 484 - Arbitration Agreement -Incorporation By Reference
Arbitration and Conciliation Act, 1996 - Section 7 - In arbitration clause in another document would get incorporated into the later contract by reference, if the contract contains a clear reference to the document containing the arbitration clause and such reference to the other document clearly indicates the intention to incorporate the arbitration clause into the contract and such arbitration clause is capable of application to the disputes under the contract and is not repugnant to any term of that contract. [Context: In this case, Supreme Court held that Clause 14 of the Permanent Alternate Accommodation Agreements clearly incorporated all terms and clauses of the earlier Development Agreement, thereby importing its arbitration clause (Clause 36) into the later agreements under Section 7(5) of the Arbitration Act. The Court found that this was not a mere reference but a full “body and soul” incorporation of the Development Agreement]
Case Info
Extracted Information
Case name: Hirani Developers v. Nehru Nagar Samruddhi Co‑operative Housing Society Ltd. and another Etc.Neutral citation: 2026 INSC 484Coram: Sanjay Kumar, J. and K. Vinod Chandran, J.Judgment date: 13 May 2026
Case law and citations referred
The judgment expressly relies on:
- M.R. Engineers and Contractors Private Limited v. Som Datt Builders Limited, (2009) 7 SCC 696
- NBCC (India) Limited v. Zillion Infraprojects Private Limited, (2024) 7 SCC 174
Statutes / laws referred
The Court discusses and applies:
- Arbitration and Conciliation Act, 1996, particularly:
- Section 7 (Arbitration agreement), with emphasis on Section 7(5) (incorporation by reference)
- Section 11 (appointment of arbitrator)
- Section 12 (disclosure by arbitrator), and the Fourth Schedule (arbitrator’s fees)
- Consumer Protection Act, 2019 (in the context of complaints filed by the respondents)
Three‑sentence brief summary
The Supreme Court held that Clause 14 of the Permanent Alternate Accommodation Agreements clearly incorporated all terms and clauses of the earlier Development Agreement, thereby importing its arbitration clause (Clause 36) into the later agreements under Section 7(5) of the Arbitration Act. Relying on M.R. Engineers and NBCC v. Zillion, the Court found that this was not a mere reference but a full “body and soul” incorporation of the Development Agreement, so the High Court erred in holding that there was no arbitration agreement between the developer and individual society members. Setting aside the High Court’s common order dated 26.06.2025, the Supreme Court allowed the appeals and appointed Mr. Vishal Kanade as Sole Arbitrator to adjudicate the disputes.