New Delhi, Dec 6 (SocialNews.XYZ) The Supreme Court on Wednesday held that non-signatories or third parties may be joined as parties within the same arbitration proceedings.
A Constitution Bench headed by CJI D.Y. Chandrachud expanded the scope of the term “parties” provided under the Arbitration and Conciliation Act, 1996 saying that it includes both signatory and non-signatory parties.
The 5-judge bench, Hrishikesh Roy, P.S. Narasimha, J.B. Pardiwala and Manoj Misra, was considering whether jurisdiction of an arbitral tribunal could be extended to non-signatories.
It said that the mandatory requirement of written agreement doesn't exclude the possibility of non-signatory parties as their conduct could be an indicator of their consent.
It added that the tribunal will determine if different corporate entities could be treated as a single economic unit in arbitration proceedings.
Earlier, a 3-judge bench had said that the 'group of companies' doctrine requires a relook and referred the question to a larger bench.
The doctrine provides that a non-signatory party could be bound by an arbitration agreement if such a company is closely related and forms a single economic unit and a mutual intention can be made out amongst all the parties to be bound by the proceedings.
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
