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2019 (8) TMI 576 - SC - Indian LawsArbitration agreement - group company - binding of the agreement on the subsidiary company - draft tripartite agreement forwarded by Canara Bank wherein MTNL and CANFINA were both made parties - availability of remedy to file an application under Section 16 of the Arbitration and Conciliation Act, 1996 - HELD THAT:- A non-signatory can be bound by an arbitration agreement on the basis of the “Group of Companies” doctrine, where the conduct of the parties evidences a clear intention of the parties to bind both the signatory as well as the non-signatory parties. The present case is one of implied or tacit consent by Respondent No. 2 – CANFINA to being impleaded in the arbitral proceedings, which is evident from the conduct of the parties. We find that Respondent No. 2 – CANFINA has throughout participated in the proceedings before the Committee on Disputes, before the Delhi High Court, before the Sole Arbitrator, and was represented by its separate Counsel before this Court in the present appeal. There was a clear intention of the parties to bind both Canara Bank, and its subsidiary – CANFINA to the proceedings. In this case, there can be no final resolution of the disputes, unless all three parties are joined in the arbitration. Appeal allowed in part.
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