Can a non-signatory to the contract be a party to the arbitration?
Case name: Shapoorji Pallonji and Co Pvt Ltd v. Rattan India Power Ltd & Anr
Citation: ARB.P 716/2019
#IFD #Contract #Arbitration
The validity of arbitration was questioned claiming that there was no prima facie agreement between the parties and arbitration clause cannot be invoked against non-signatory to the contract.
Decisions - Interpretation of Group of Companies doctrines, the Delhi High Court held that If a non-signatory party is directly involved in the contract they can be compelled to arbitrate.
Conclusion - Non-signatory being direct beneficiary can be directed to arbitration.
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