“15. The relevant language used in Section 8 is –“in a matter which is the subject of an arbitration agreement”. The tribunal is required to refer the parties to arbitration. Therefore, the remedy should relate to “a matter” that the parties have agreed to refer and that falls within the scope of the arbitration agreement. However, in the event of an appeal – “in a matter” that does not fall within the scope of the arbitration agreement and between some of the parties that are not parties to the arbitration agreement – there is no question of the application of Article 8. The term “a case” means that the entire subject matter of the appeal should be the subject of an arbitration agreement. “66. Although the scope of an arbitration agreement is limited to the parties who entered into it and to those claiming it or through it, the courts have also applied, in some cases, the Group of Companies Doctrine. This doctrine has developed in the international context, according to which an arbitration agreement concluded by an enterprise belonging to an enterprise group may bind its non-signatory subsidiaries or its subsidiaries or subsidiaries or parent companies if the circumstances show that the reciprocal intention of all parties was to retain both signatories and non-signatory partners.
This theory has been used in a series of arbitration proceedings to justify a court assuming responsibility for a party that is not a signatory to the contract containing the arbitration agreement. [Russell on Arbitration` (twenty-third edition)]. 67. The principle that a non-signatory party may be subject to arbitration proceedings, provided that such transactions coincide with an enterprise group and that the parties clearly intend to bind both the signatory and the non-signatory parties. In other words, “the intention of the parties” is a very important characteristic that must be established before the scope of the arbitration proceedings can involve both the signatory and the non-signatories. (Emphasize only here) iii The non-signatory has a direct relationship with the undersigned party or the parties are involved in carrying out a compound transaction, i.e. a transaction with a common or common commercial purpose that would not be possible without the participation of the non-signatory party. Also, you should take the time to read the entire agreement before signing. Make sure you have a complete understanding of the terms and ask for clarification on ambiguous issues before putting your pen on paper.
If a company is involved in a contract, for example. B in a sales contract, a person with legal authority would sign the document on behalf of the company. A signatory of the company may be determined by a decision of the board of directors indicating that the director or senior officer is able to sign documents for the company. Where the original arbitration agreement or a certified copy thereof is not available from the party requesting reference to arbitration in accordance with Subsection (1) and the agreement or certified copy is retained by the other party to this agreement, the applicant party shall submit that request together with a copy of the arbitration agreement and a petition; in which the court is invited to ask the other party to present the original. The arbitration agreement or a copy duly certified before that court. “45. Power of the judicial authority to refer the parties to arbitration proceedings.- Notwithstanding the provisions of Part I or the Code of Civil Procedure of 1908 (5 of 1908), a judicial authority, when it is promoted by an appeal in a case for which the parties have concluded an agreement in accordance with section 44, at the request of one of the parties or a person, who claims, by or under it, to denounce the parties to arbitration proceedings, unless it finds that the above-mentioned agreement is failing that, ineffective or incapable of being enforced. In their desire to emphasize the importance and sanctity of the corporate group doctrine, the Indian courts have ruled in favour of extending references to non-signatories to an arbitration agreement, subject to non-compliance with certain thresholds. . . .