High Court of Delhi binds certain non-signatories to an arbitration agreement as veritable parties on account of their substantial and direct involvement in the negotiation and performance of a contract/transaction (KKH Finvest Private Ltd and another v Jonas Haggard and others)
Arbitration analysis: In a decision given in October 2024, the Delhi High Court (DHC) exercised its prima facie jurisdiction under Section 11(5) of the Indian Arbitration and Conciliation Act, 1996 (A&C Act) to partially allow a petition to commence arbitration against certain non-signatories to an arbitration agreement on the basis of the non-signatories’ ‘positive, direct, and substantial’ involvement in the negotiation or performance of the underlying contract containing the arbitration agreement. Accordingly, the DHC found the non-signatories to be veritable parties, leaving the ultimate decision about whether the non-signatories were, in fact, bound by the arbitration agreement to the arbitral tribunal. Written by Juhi Gupta, counsel and Ayan Tandon, associate at Shardul Amarch and Mangaldas & Co.
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