Thiruvananthapuram, Nov. 12 -- The Kerala High Court has held that a written arbitration agreement need not be signed by all parties, if their conduct and documentary evidence reflect mutual consent and intention to arbitrate.

Justice S. Manu, while allowing a plea for reference to arbitration, held that signatures are not a formal requirement under Section 7 of the Arbitration and Conciliation Act, 1996, if parties have acted upon the agreement or exchanged communications acknowledging its existence.

The case concerned Sigmatic Nidhi Ltd, which had advanced loans to borrowers who defaulted on repayment. The loan agreement was signed only by the borrowers. A sole arbitrator had issued an award that was later set aside by a lower court. ...