Arbitration Agreement Binding On Third Party

But there are cases where parties have been allowed to return to or be related to arbitration agreements, in which they were not originally involved. Even in the context of an arbitration agreement, the concepts of corporate legal personality and contractual practice are not always invisible. A “composite transaction” refers to a related transaction; or, if the implementation of the agreement is not possible without the help, implementation and implementation of the ancillary or incidental agreement, to achieve the common good and have a collective influence on the dispute. “45. The power of the judicial authority to refer the parties to arbitration. – Notwithstanding the provisions contained in Part I or the Code of Civil Procedure of 1908 (5 of 1908), a judicial authority, when it brought a legal action in a case for which the parties entered into an agreement pursuant to Section 44, a, at the request of one of the parties or a person asserting his rights by or under his authority , referring the parties to arbitration unless it finds that this agreement is null, void or inoperative.” This case is a starting point for two reasons: (i) the Court applied the statement of reasons adopted in Chloro Controls (see below) to a factual situation within the scope of section 8 of the Act, although that judgment was rendered under Section 45 of the Act; and (ii) referring to the language of the amended law, in particular Section 8 of the amended Act and the 246th report of the Hon`ble Commission, the Hon`ble Supreme Court largely watered down the applicability of Sukanya Holdings (supra) in a Section 8 scenario. The introduction of the terms “party to the arbitration agreement or to any person who has asserted by or under his right” (which is similar to that of Section 45 of the Act) and “notwithstanding a judgment, a decision of the Supreme Court or a court” in section 8 amended by the Act was interpreted by the Supreme Court to assist parties who have executed agreements that are part of the same transaction. to refer to a composite arbitration procedure. , even if not all of these agreements contain arbitration clauses. Therefore, Sukanya Holdings (supra), although not cautioned, may have very limited application in the similar fact scenario, and cannot be used to test whether all parties have attempted to be referred to a compound arbitration, are necessary parties, or whether the arbitration agreement itself is wrong in law11.