Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

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Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

December 28, 2023

It is common belief that an arbitration agreement should be in writing, and that only signatories to the agreement are bound by it. In complex transactions involving multiple agreements and multiple parties, a party might involve its group affiliates. The affiliates may not have signed the agreements but participate in their execution at some stage. Are such non-signatory group affiliates bound by the agreements? They could be, as per a recent judgment of the Indian Supreme Court in the case of Cox & Kings Ltd. v. SAP India Pvt. Ltd.

Please read our analysis and practice notes here.

Authors:

Kshama Loya, Partner

Oindrila Mukherjee, Associate

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Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

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Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

Non-signatories may be bound by arbitration agreements signed by their affiliates within a group of companies - Rules Supreme Court of India

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