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When Can 'Group Of Companies' Doctrine Be Invoked To Bind Non-Signatory Company To Arbitration?
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When Can 'Group Of Companies' Doctrine Be Invoked To Bind Non-Signatory Company To Arbitration?

14 Aug 2019 01:39 pm

The Supreme court,  explained the circumstances in which the 'Group of Companies' Doctrine could be invoked to bind the non-signatory affiliate of a parent company to an arbitration?

The bench comprising Justice Abhay Manohar Sapre and Justice Indu Malhotraobserved in Mahanagar Telephone Nigam Ltd vs. Canara Bank that the 'Group of Companies' Doctrine could be invoked to bind the non-signatory affiliate of a parent company, or inclusion of a third party to an arbitration, if there is a direct relationship between the party which is a signatory to the arbitration agreement; direct commonality of the subject matter; the composite nature of the transaction between the parties.

 

Mahanagar Telephone Exchange Ltd. vs Canara Bank and Ors.

Civil Appeal no 6202-6205 of 2019



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