Binding Non-Signatories To An Arbitration - Charting The Shifting Paradigms

Introduction

Commercial transactions in today's context are often complex, multi-layered and involve parties from several jurisdictions executing numerous documents. Consequently, contracting parties encounter several challenges in ensuring that the primary commercial objective is fulfilled along with safeguarding the interest of parties who are integral to the transaction.

In balancing the interests of all stakeholders there are complications and time and again roadblocks are encountered when these complex multi-layered transactions end up before dispute resolution forums (mostly arbitrations in the present scheme of matters). In such scenarios judges and arbitrators are often confronted with the task of ensuring that party autonomy is not compromised while also bringing the entire dispute under one umbrella in keeping with the original intent of parties.