Non-Signatories To Arbitration Agreement Can Be Made Party To Dispute If Reliefs Sought Against Them Align With Those Sought Against Signatories: Calcutta HC
1 week, 2 days ago

Non-Signatories To Arbitration Agreement Can Be Made Party To Dispute If Reliefs Sought Against Them Align With Those Sought Against Signatories: Calcutta HC

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The Calcutta High Court bench of Justices Sabyasachi Bhattacharyya and Uday Kumar has observed that if the reliefs against the non-signatories to the arbitration agreement are in harmony with the reliefs sought against the signatories, particularly when the legal relationship between the signatories and non-signatories are on the same platform vis-a-vis the cause of action of the suit and the reliefs claimed, then the non-signatories could very well be brought within the purview of the arbitration agreement. The learned Single Judge dismissed the application under Section 8 of the 1996 Act primarily on the premise that Defendant Nos.3 to 5 in the suit, against whom claims had been made in the plaint, were not parties to the arbitration agreement and as such, there could not be any reference under Section 8. In Section 8, the Court not only considers the validity of the agreement but also considers whether the reliefs claimed in the suit come within the ambit of the arbitration agreement. Adding to the ratio, the Court held that if upon looking at the plaint, it appears that the reliefs against the non-signatories to the arbitration agreement are in harmony with the reliefs sought against the signatories particularly when the legal relationship between the signatories and non-signatories are on the same platform vis-a-vis the cause of action of the suit and the reliefs claimed, then the non-signatories could very well be brought within the purview of the arbitration agreement.

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