A non-signatory can be bound by Arbitration Agreement on the basis of “Group of Companies” doctrine, Supreme CourtAugust 9 2019
The Supreme Court yesterday ruled that a non-signatory can be bound by an arbitration agreement on the basis of the “Group of Companies” doctrine, where the conduct of the parties evidences a clear intention of the parties to bind both the signatory as well as the non-signatory parties.
The judgment was rendered by a Bench of Justices AM Sapre and Indu Malhotra in a dispute between Mahanagar Telephone Nigam Limited (MTNL) and Canara Bank.
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