Arbitrable Disputes Vis-À-Vis Group Company Doctrine: An Expanding Scope

The question of law and concept of 'Group-Company Doctrine' which was referred to the constitution bench of Hon'ble Supreme Court in the matter of Cox & Kings Ltd. v. SAP India (P) Ltd.¹, has now been crystallized and made enforceable under the Arbitration & Conciliation Act, 1996 ('Arbitration Act'). The Hon'ble Supreme Court has recognized the Doctrine's application to bind non-signatories to an 'Arbitration Agreement' upon satisfaction of certain parameters. The controversy over binding nature of Arbitration Agreement on non-signatories – in absence of their express consent inter-alia the concepts of 'Autonomy' and 'Privity of Contracts' has been laid to rest to the extent that Court's seized of the question have to determine if there exists a defined legal relationship between the non-signatory and the parties to the arbitration agreement. Depending on the facts and circumstances of each case, the courts where the question of applicability of doctrine