SC on ‘group of companies’ doctrine in arbitrations
July 1, 2019
The Applicant/Petitioner had entered into a packaging material supply agreement dated 1 May 2014 (“Agreement”) with Respondent No. 1, which contained an arbitration clause. During the course of the Agreement, disputes arose between the parties and the Applicant filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 (“Act”) before the Supreme Court seeking the appointment of a sole arbitrator (“Application”). The Applicant sought to implead Respondent No. 2, which is a Belgian affiliate of Respondent No. 1. The Applicant invoked the jurisdiction of the Supreme Court on the ground that Respondent No. 2 is an entity incorporated in a country other than India and consequently, this was an international commercial arbitration.