Writ Against Third Party Is Maintainable Despite Arbitration Clause When There Are No Disputes Between Contracting Parties: Calcutta HC

In a notable ruling, the Calcutta High Court has permitted a writ petition to be filed against a third party to a contract, even though the contract itself contained an arbitration clause. The court's decision was based on the specific circumstances of the case, where no direct dispute existed between the two parties who were signatories to the contract containing the arbitration agreement. The High Court reasoned that since the issue at hand involved a non-signatory and did not constitute a dispute between the contracting parties that fell within the scope of the arbitration clause, the aggrieved party was entitled to seek recourse through the extraordinary writ jurisdiction of the High Court. This nuanced judgment demonstrates a balanced approach by preserving the effectiveness of arbitration agreements for disputes between the contracting parties while ensuring that judicial remedies remain available against third parties who are not bound by the arbitration clause, particularly when the matter in question does not arise directly from the contractual relationship between the signatories.