Arbitration and Non signatory parties

*Cox & Kings Ltd. v. SAP India (P) Ltd. [2023] GCtR 2041 (SC)* 

The definition of “parties” under Section 2(1)(h) read with Section 7 of the Arbitration and Conciliation Act, 1996 includes both the signatory as well as non-signatory parties. Conduct of the non-signatory parties could be an indicator of their consent to be bound by the arbitration agreement. The underlying basis for the application of the group of companies doctrine rests on maintaining the corporate separateness of the group companies while determining the common intention of the parties to bind the non-signatory party to the arbitration agreement. The group of companies doctrine should be retained in the Indian arbitration jurisprudence considering its utility in determining the intention of the parties in the context of complex transactions involving multiple parties and multiple agreements