{"id":272745,"date":"2023-12-07T20:19:31","date_gmt":"2023-12-07T14:49:31","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=272745"},"modified":"2023-12-07T20:19:31","modified_gmt":"2023-12-07T14:49:31","slug":"group-of-companies-doctrine-sc-holds-arbitration-agreement-can-be-binding-on-non-signatory-firms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/group-of-companies-doctrine-sc-holds-arbitration-agreement-can-be-binding-on-non-signatory-firms\/","title":{"rendered":"Group of Companies Doctrine: SC holds arbitration agreement can be binding on non-signatory firms"},"content":{"rendered":"

Source: <\/b>The post is based on the article<\/span> \u201cArbitration agreement can be binding on non-signatory firms: SC\u201d<\/b> published in <\/span>\u201cThe Hindu\u201d on 7th December 2023<\/b><\/p>\n

Why in the News?<\/h2>\n

The<\/span> Supreme Court of India has held that an arbitration agreement can be binding on non-signatory firms under the \u201cgroup of companies\u201d doctrine<\/strong>.<\/span><\/p>\n

What is the Group of Companies Doctrine (GOCD)?<\/h2>\n

1) The <\/span>Group of Companies Doctrine (GOCD)<\/span> is applied in arbitration proceedings.<\/span><\/p>\n

2) The doctrine <\/span>states an arbitration agreement binding on a fi\u0081rm, which though not a signatory, is a member of a group of companies that is a party to the agreement<\/span><\/p>\n

What did the Supreme Court say on the Group of Companies Doctrine (GOCD)?<\/h2>\n

1) The \u200b\u200bSupreme Court has <\/span>upheld the “Group of Companies” doctrine in Indian arbitration law.<\/span><\/p>\n

2)<\/span>\u00a0The court also held that the definition of \u201cparties\u201d under Section 2 and Section 7 of the Arbitration Act included both the signatory as well as non-signatory parties.<\/p>\n

3)\u200b\u200b This judgment clarifies the scope of the “group of companies” doctrine in India and makes it easier for parties to enforce arbitration agreements.<\/span><\/p>\n

What is Arbitration?<\/h2>\n

1) Arbitration is a form of alternative dispute resolution (ADR) in which a neutral third party resolves a dispute outside of court.\u00a0<\/span><\/p>\n

2) The parties to the dispute agree to submit their case to an arbitrator, who will make a binding decision on the matter.\u00a0<\/span><\/p>\n

3) Arbitration can be a faster and more cost-effective way to resolve disputes.<\/span><\/p>\n

4) Arbitration in India is governed by the Arbitration and Conciliation Act,1996.<\/span><\/p>\n

UPSC Syllabus: Polity<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cArbitration agreement can be binding on non-signatory firms: SC\u201d published in \u201cThe Hindu\u201d on 7th December 2023 Why in the News? The Supreme Court of India has held that an arbitration agreement can be binding on non-signatory firms under the \u201cgroup of companies\u201d doctrine. What is the… Continue reading Group of Companies Doctrine: SC holds arbitration agreement can be binding on non-signatory firms<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,1760],"tags":[11872],"class_list":["post-272745","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-polity-and-nation","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":{"total":4,"cached_at":"","cached_date":1701977793},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/272745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=272745"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/272745\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=272745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=272745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=272745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}