Non-Signatories to Arbitration III

The principle for binding Non-Signatories as laid down in Chloro Controls India Pvt. Ltd. v. Severn Trent Water Purification Inc., (2013) 1 SCC 641 was applied in context of a Domestic Arbitration in Ameet Lalchand Shah v. Rishabh Enterprises, (2018) 15 SCC 678. Three-Judge Bench of this Court in Cheran Properties Ltd. v. Kasturi & Sons Ltd., (2018) 16 SCC 413 observed, decision by a Two-Judge Bench in Indowind Energy Ltd. v. Wescare (I) Ltd., (2010) 5 SCC 306 was rendered before evolution and application of Doctrine of Group of Companies by a Three-Judge Bench in Chloro Controls. Group of Companies Doctrine was subsequently applied by a Two-Judge Bench of this Court in Reckitt Benckiser (India) Private Limited v. Reynders Label Printing India Private Limited, (2019) 7 SCC 62.

Non-signatories may be held to be bound on a consensual theory, founded on agency and assignment or on a non-consensual basis such as estoppel or alter ego [Gary Born, International Commercial Arbitration].

Hon’ble Justice Dr. D.Y. Chandrachud, Oil and Natural Gas Corporation v. M/s. Discovery Enterprises Pvt. Ltd., [Civil Appeal No. 2042 of 2022].