As per the Contract Law, an agreement cannot be binding on the
non-signatory. Similarly, an arbitration agreement is also governed
by the same principle. Arbitration is based on consent and can only
bind the parties who are in agreement to it. However, a
non-signatory can be bound by an arbitration agreement in certain
circumstances. Indian jurisprudence has developed in the light of
the following circumstances:
INDIAN JURISPRUDENCE
A. The hon'ble Supreme Court of India in the case of
Sukanya Holdings Pvt Ltd.1
held that non-signatory to the arbitration agreement cannot be
referred to arbitration as there is no provision in the Arbitration
Act which prescribes a mechanism in this regard.
