Non-signatory to an arbitration agreement permitted to participate in the arbitration proceedings on the basis of "Group Companies" concept

Last updated: 17 August 2022
Quick Summary
The Supreme Court has ruled that a company that hasn't formally signed an arbitration agreement can still be included in arbitration proceedings. This is based on the 'Group Companies' doctrine, which allows parties to be bound if their conduct clearly shows an intention to arbitrate. The court found that CANFINA, a subsidiary of Canara Bank, was a necessary party to the arbitration with MTNL, despite not being a signatory to the original arbitration agreement.

Court :
Supreme Court of India

Brief :
Hon'ble Supreme Court observed that a binding agreement for disputes to be resolved through arbitration is a sine-qua-non for referring the parties to arbitration.

Citation :
Mahanagar Telephone Nigam Ltd. (Appellant) vs. Canara Bank & Ors. (Defendant)

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