Jurisdiction(s):
United Kingdom

Supreme Court of India confirms Group of Companies arbitration doctrine, setting consent-based factors for binding non-signatories in multi-party, multi-contract composite transactions (Cox and Kings)

Published on: 08 January 2024

Published by a LexisNexis Arbitration expert

Legal News

Article summary

Cox and Kings Ltd v SAP India Pvt Ltd and another SLP (C) No 8607 of 2022 and with SLP (C) No 5833 of 2022

What are the practical implications of this case?

The Cox and Kings ruling carries significant consequences for Indian arbitrations involving multiple parties and interlinked contracts. The Supreme Court confirmed that the Group of Companies doctrine operates in India, but emphasised that binding non-signatories to an arbitration agreement depends on assessing multiple factors. These are discussed further below. Practitioners should pay attention to the participation of non-signatories in the contractual affairs of group entities. Where affiliates take part in negotiations or in performing the contractual duties of another company, or, through their conduct, display a unified intention, they can be regarded as bound by the arbitration clause in such circumstances too.

What was the background?

Whether non-signatories could still be held to an arbitration agreement had earlier been examined by the Indian Supreme Court in Chloro Controls India (P) Ltd v Severn Trent Water Purification Inc (2013) 1 SCC 641 (“Chloro Controls”). In Chloro Controls, the court determined that the reach of arbitration agreements could, in appropriate circumstances, extend to entities that were not signatories...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...