Supreme Court Clarifies Under Section 11 Arbitration Act Referral Court Can Examine If Non-Signatory Is Party

The Supreme Court has held that a Referral Court under Section 11 of the Arbitration and Conciliation Act can examine whether a non-signatory is a real party to the arbitration agreement. 

The Court clarified that this inquiry is prima facie and limited to checking the existence of an arbitration agreement, without conducting a detailed trial.

The Court ruled that BCL failed to show any intention or privity binding it to the HPCL–AGC contract, setting aside the Bombay High Court order appointing an arbitrator.

[Hindustan Petroleum Corporation Ltd. v. BCL Secure Premises Pvt. Ltd.]