Non-Signatories Bound By Arbitration Clause When Purchasing Property From Agreement Parties: Karnataka High Court

In a recent Karnataka High Court ruling, it was determined that parties who are not signatories to an arbitration clause in a property purchase agreement can still be bound by it if they are effectively linked to the contract. The court held that non-signatories could be compelled to arbitrate if their involvement in the agreement's performance and benefits is significant. This decision underscores that arbitration clauses can extend beyond the original signatories if the non-signatories are closely related to the contract’s obligations and benefits, ensuring that all parties connected to the agreement are held accountable under the arbitration process.