Supreme Court Urges Law Ministry to Fix Gaps in Arbitration Bill 2024

The Supreme Court has raised concerns over the Arbitration and Conciliation (Amendment) Bill, 2024, for not addressing whether arbitral tribunals can implead non-signatories, a legal gap that has continued since the 1996 Act.

A bench urged the Law Ministry to review the draft and address long-standing procedural ambiguities.

The Court observed while upholding the inclusion of ASF Buildtech in arbitral proceedings by applying the Group of Companies Doctrine.

The court held that the company's conduct showed an intention to be bound by the arbitration clause, even though it was not a formal signatory to the agreement.