‘Group of companies’ doctrine reiterated
A nonsignatory to a contract may be bound by an arbitration agreement where the parent or holding company, or a member of the group of companies is a signatory to the arbitration agreement. It is especially so when the non-signatory entity in the group has been engaged in the negotiation or performance of the commercial contract, or made statements indicating its intention to be bound by the contract. This doctrine of group companies was reiterated by the Supreme Court in its judgment in MTNL vs Canara Bank. The issue arose in this case when MTNL floated