Non-signatory arbitration consent requires clear intention; group affiliation and correspondence alone do not bind a foreign company.

A non-signatory foreign group company cannot be impleaded in arbitration absent clear evidence of consent to arbitrate or a mutual intention to bind that entity. Under the limited inquiry at the Section 11 stage, mere group affiliation and post-contract correspondence were insufficient to establish privity, execution, or assent to the arbitration clause. The evidence did not discharge the burden of showing that the non-signatory had agreed to be bound, so it could not be referred to arbitration. The request succeeded only against the signatory Indian company, for which a sole arbitrator was appointed.

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Issues: Whether a non-signatory foreign group company could be impleaded and referred to arbitration on the basis of the correspondence, contract documents, and the group of companies doctrine.

Analysis: The limited inquiry under Section 11(6) read with Section 11(6A) of the Arbitration and Conciliation Act, 1996 was confined to the existence of an arbitration agreement. The materials relied upon did not establish that the non-signatory company had participated in the negotiations, executed the agreement, or otherwise assented to be bound by the arbitration clause. The burden to show a clear intention to bind the non-signatory was not discharged. Mere membership of the same corporate group was insufficient, and the post-contract correspondence could not create privity or consent where none was otherwise shown.

Conclusion: The non-signatory respondent could not be subjected to arbitration and the request against it failed. The petition was, however, maintainable against the signatory Indian company, and a sole arbitrator was appointed for the domestic arbitration between those parties.

Final Conclusion: The application succeeded only to the extent of constituting an arbitral tribunal against the signatory respondent, while the attempt to bring in the non-signatory group company was rejected.

Ratio Decidendi: A non-signatory can be bound by an arbitration agreement only when the evidence shows a clear mutual intention to arbitrate and to bind that entity, which cannot be inferred merely from group affiliation or unproven correspondence.

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