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ARTICLE · 06 DECEMBER 2022

Treatment Of Non-Signatory In An Arbitration - Did GE Energy Case Answer The Question?

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S&A Law Offices

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Consent has always been a cornerstone of arbitration, whether it is under international treaties or state legislation.

IndiaLitigation, Mediation & Arbitration

INTRODUCTION

Consent has always been a cornerstone of arbitration, whether it is under international treaties or state legislation. The proceedings rest fundamentally on the concept of consent and the parties' agreement to waive off the right to seek legal remedy under the court system. In other words, it operates on a principle of autonomy. Generally, a non-signatory third party to an arbitration agreement or clause could not be compelled to arbitrate. At the same time, the non-signatory third party cannot compel a signatory party to arbitrate. The law is premised on a standard principle based on the consent of the parties and their express agreement to compel or be compelled to arbitrate. However, there are times when complicated business relations and other circumstances where arbitrators have to decide whether parties who have not signed the arbitration agreement either seek to be bound by the same or are impleaded by the signatories. Such circumstances give rise

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