Dispute Resolution Hotline
September 24, 2018
India: power of courts to refer non-signatories to arbitration
This article was originally published in
International Arbitration Law Review (Vol. 21 Issue 4 of 2018)
In the context of foreign-seated arbitrations, the Supreme Court of India has clarified that non-signatories to an agreement may be referred to arbitration in certain circumstances such as in case of inter-connected agreements meeting certain criteria. In case of domestic arbitrations, the Supreme Court in Ameet Lalchand Shah and Others v. Rishabh Enterprises and Another, observed that courts may refer parties to a single arbitration, if all the agreements are inter-connected and composite, with a similar underlying commercial purpose. This is possible even in cases where the parties to the agreements are not common or all agreements do not have arbitration clauses.
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