'Group Of Companies' Doctrine: An Analysis In The Context Of Arbitration

INTRODUCTION

Arbitration is a private, consent-based process. As per Section 7 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "the Act"), there must be consensus ad idem between the parties for a valid arbitration agreement to exist i.e. the parties must agree to the same thing in the same sense and must have the common intention to settle the dispute through an arbitral tribunal. To bind non-signatories to an arbitration agreement, a variety of legal concepts have been employed, albeit infrequently, to prove such assent. The "group of companies" theory is one such legal doctrine examined in this article.

The "group of companies" philosophy has gotten a lukewarm reception, with a few exceptions. Most civil and common law jurisdictions have given it a warm welcome, despite the fact that it has been criticised for ignoring the idea of separation of powers. Separate legal personality and the ability to treat several corporate units within a