Arbitration Proceedings Can't Be Commenced Against Third Parties Who Are Not Parties To Agreement: Bombay High Court

The Bombay High Court ruled that arbitration proceedings cannot be commenced against third parties who are not parties to the arbitration agreement. The case involved a dispute where one party attempted to include third parties in the arbitration proceedings. The court found that arbitration is a consensual process, and only parties who have agreed to arbitrate can be included in the proceedings. This decision underscores the principle that arbitration agreements are binding only on the parties who have consented to them and cannot be extended to third parties without their agreement. It highlights the importance of consent in arbitration and the limitations on including third parties in arbitration proceedings.