Whether Non-Signatory Bound By Arbitration Agreement Can Be Decided By Tribunal, Not Referral Court U/S 11 Of Arbitration Act: Allahabad HC

The Allahabad High Court ruled that the issue of whether a non-signatory is bound by an arbitration agreement should be decided by the arbitral tribunal, not the referral court under Section 11 of the Arbitration Act. The court emphasized that such issues require factual determination, which falls within the jurisdiction of the arbitral tribunal under Section 16 of the Act. The case involved a dispute over the applicability of an arbitration agreement to a non-signatory party. The court held that the referral court’s role is limited to verifying the existence of an arbitration agreement, and any further questions should be addressed by the arbitral tribunal. This decision aims to streamline the arbitration process and prevent premature judicial intervention. By directing that such issues be resolved by the arbitral tribunal, the court seeks to uphold the principle of kompetenz-kompetenz, which allows the tribunal to rule on its own jurisdiction.