Arbitration referral stage limits court scrutiny to prima facie agreement; non-signatory binding effect left to the tribunal

At the referral stage, the court need only verify the prima facie existence of an arbitration agreement before appointing an arbitrator. The dispute over whether connected non-signatories are bound by the arbitration clause, and whether they may be joined in the reference, was left to the arbitral tribunal for determination under competence-competence. A sole arbitrator was accordingly appointed, while the objection concerning impleadment and the binding effect on non-signatory connected persons remained open for decision by the tribunal.

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Issues: Whether a sole arbitrator should be appointed under the arbitration clause and whether the question of binding non-signatory connected persons should be left to the arbitral tribunal.

Analysis: The arbitration agreement between the contracting parties was undisputed. In proceedings for appointment of an arbitrator, the court is required to satisfy itself only about the prima facie existence of an arbitration agreement. The question whether connected non-signatories are bound by the agreement, and whether they can be joined in the reference, was treated as a matter for the arbitral tribunal in the exercise of its jurisdiction under the arbitration framework, particularly in light of competence-competence and the principle that factual and legal questions concerning non-signatories may require fuller examination by the tribunal.

Conclusion: A sole arbitrator was appointed and the objection regarding impleadment and binding effect of the agreement on the non-signatory connected persons was left open for decision by the arbitral tribunal.

Ratio Decidendi: At the referral stage, the court need only ascertain the prima facie existence of an arbitration agreement, while issues concerning the binding of non-signatories and their joinder are ordinarily left for the arbitral tribunal to decide.

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