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Indian Laws - Highlights / Catch Notes

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The Court addressed whether a non-signatory party should be ...


Non-signatory party's referral to arbitration depends on evidence of intent to be bound.

Case Laws     Indian Laws

September 23, 2024

The Court addressed whether a non-signatory party should be referred to arbitration along with the signatory parties. It held that the referral court must prima facie determine the existence of an arbitration agreement and whether the non-signatory is a party to it. However, the arbitral tribunal is better equipped to conclusively decide if the non-signatory intended to be bound by the arbitration agreement based on evidence and legal doctrines. Factors like mutual intent, relationship with signatories, commonality of subject matter, and performance of the contract indicate the non-signatory's intention to be bound. Considering the complexity, the Court appointed a sole arbitrator to determine if the non-signatory group should be included in the arbitration after examining evidence and applying legal principles outlined in Cox and Kings.

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