Telangana High Court Rules non-signatories bound by arbitration agreement if closely connected

The Telangana High Court ruled that a non-signatory to an arbitration agreement may be made a party to proceedings under Section 9 of the Arbitration & Conciliation Act if they have a live and proximate connection to the agreement.

The bench observed that respondents who received 95% of the contract value and executed sale agreements cannot escape liability merely because they didn’t sign the arbitration clause.

Relying on Supreme Court precedents, the Court emphasised that arbitration obligations extend beyond strict signatures when conduct shows a clear connection to the agreement. 

(K.Bala Vishnu Raja v. Emaar Hills Township Pvt Ltd & Ors.)