Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 – s.37 – Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration – Group of companies doctrine – Invocation of – Held: An arbitration agreement entered into by a company within a group of companies, can bind its non-signatory affiliates or sister concerns if the circumstances demonstrate a mutual intention of the parties to bind both the signatory and affiliated, non-signatory parties – A non-signatory may be bound by the arbitration agreement where: (i) there exists a group of companies; and (ii) parties have engaged in conduct or made statements indicating an intention to bind a non-signatory – In deciding whether a company within a group of companies which is not a signatory to arbitration agreement would nonetheless be bound by it, the law considers the following factors: (i) mutual intent of the parties; (ii) relationship of a non-signatory to a party which is a signatory to the agreement; (iii) commonality of the subject matter; (iv) composite nature of the transaction; and (v) performance of the contract. Arbitration and Conciliation Act, 1996 – s.37 – Decision of Arbitral Tribunal that it lacks jurisdiction – Challenge to – Held: If the arbitral tribunal accepts a plea that it lacks jurisdiction, the order of the tribunal is amenable to a challenge in appeal u/s.37(2)(a) – In exercise of the appellate jurisdiction, the court must have due deference to the grounds which weighed with the tribunal in holding that it lacks jurisdiction having regard to the object and spirit underlying the statute which entrusts the arbitral tribunal with the power to rule on its own jurisdiction – Decision of the tribunal that it lacks jurisdiction is not conclusive because it is subject to appellate remedy u/s.37(2)(a) – However, in exercise of this appellate power, the court must be mindful of the fact that the statute has entrusted the arbitral tribunal with the power to rule on its own jurisdiction with the purpose of facilitating the efficacy of arbitration as an institutional mechanism for resolution of disputes. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 483 |
Petitioner | Oil And Natural Gas Corporation Ltd. |
Respondent | M/s Discovery Enterprises Pvt. Ltd. & Anr. |
SCR | [2022] 4 S.C.R. 926 |
Judgement Date | 2022-04-27 |
Case Number | 2042 |
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