Non-Signatories Can Be Included In Arbitration Beyond Group Company Ties: Delhi High Court

The Delhi High Court recently addressed the issue of whether non-signatories to an arbitration agreement can be bound by it under the "group of companies" doctrine. The court ruled that non-signatories can indeed be subject to arbitration if they are closely related to the signatory parties and the agreement indicates such a relationship. This decision reinforces the principle that arbitration clauses may extend beyond the explicit parties to include affiliated entities, provided there is a clear connection. This ruling aligns with the broader objective of enforcing contractual obligations effectively and preventing evasion of arbitration through strategic maneuvers.