Arbitration Can't Be Restricted To Specific Respondents When Agreements Form Part Of Single Commercial Transaction: Delhi High Court

The Delhi High Court has ruled that "arbitration cannot be restricted to specific respondents" if the agreements form part of a "single commercial transaction." This decision emphasizes the principle of "group of companies" doctrine or the "single economic entity" principle in arbitration. If multiple agreements, though involving different entities, are intrinsically linked and form part of a composite transaction, the arbitration clause in one agreement can bind non-signatories or related entities, ensuring that disputes arising from a unified commercial understanding are resolved holistically in a single arbitral forum.