More Than A Signature: Supreme Court Clarifies When Non-Signatories Can Be Bound By Arbitration

KKH Finvest Pvt. Ltd. & Anr. v. Ashiesh Shukla & Ors., 2026 SCC OnLine SC 1498

The Supreme Court, in KKH Finvest Pvt. Ltd. & Anr. v. Ashiesh Shukla & Ors., 2026 SCC OnLine SC 1498, has reaffirmed an important principle governing the reference of disputes involving non-signatories to arbitration. The Hon’ble Court held that the absence of a signature on an arbitration agreement is not, by itself, determinative of whether a person can be bound by the arbitration agreement. What assumes greater significance is the nature of the person's relationship with the contracting parties, their conduct and participation in the underlying transaction, and whether the transaction, viewed as a whole, demonstrates an intention to be bound.