TaxTMI 
TaxTMI 
2024 (2) TMI 1431
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....The arbitration Clause is Clause 27 of the Loan Agreement which reads as under:- "27) Any dispute or difference under or in connection with this Agreement, or any breach thereof, which cannot be settled by mutual negotiation between the Parties; shall be finally settled by arbitration conducted in accordance with the Arbitration and Conciliation Act, 1996 by a sole arbitrator. The arbitration shall be conducted in English language. The venue of the arbitration proceeding shall be NCT of Delhi." 4. Mr. Srinivasan, learned counsel for the petitioner states that as the respondents failed to pay the outstanding dues of the petitioner, the petitioner issued loan recall notice invoking arbitration on 27.04.2023 to the respondents. 5. Learned ....
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.... an email to M/s SMC Global Securities Limited who is the holding company of the petitioner which reads as under:- 13. The respondent No. 5 has signed a promissory note issued in favour of the petitioner as a guarantor. 14. Recently, the Hon'ble Supreme in Cox & Kings (supra) has observed as under:- 6. We are not reproducing the factual matrix of the case, as we have been called upon to settle the broader legal issues raised in the reference. In the process, we will answer the above legal issues, as well as other ancillary issues that have been raised before us by counsel. .............. 17. The arguments advanced by advocates on both sides of the aisle indicate that this Constitution Bench has been primarily called upon to determine....
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....parties. Therefore, the issue of existence of a valid arbitration agreement was referred to be decided by the arbitral tribunal after conducting a detailed examination of documentary evidence and cross-examination of witnesses. 161. The above position of law leads us to the inevitable conclusion that at the referral stage, the court only has to determine the prima facie existence of an arbitration agreement. If the referral court cannot decide the issue, it should leave it to be decided by the arbitration tribunal. The referral court should not unnecessarily interfere with arbitration proceedings, and rather allow the arbitral tribunal to exercise its primary jurisdiction. In Shin-Etsu Chemical Co Ltd. v. Aksh Optifibre Ltd., this Court o....
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....l court should leave it for the arbitral tribunal to decide whether the nonsignatory party is indeed a party to the arbitration agreement on the basis of the factual evidence and application of legal doctrine. The tribunal can delve into the factual, circumstantial, and legal aspects of the matter to decide whether its jurisdiction extends to the non-signatory party. In the process, the tribunal should comply with the requirements of principles of natural justice such as giving opportunity to the non-signatory to raise objections with regard to the jurisdiction of the arbitral tribunal. This interpretation also gives true effect to the doctrine of competence-competence by leaving the issue of determination of true parties to an arbitration ....
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....rprises (supra). Resultantly, the principle of single economic unit cannot be the sole basis for invoking the group of companies doctrine; i. The persons "claiming through or under" can only assert a right in a derivative capacity; j. The approach of this Court in Chloro Controls (supra) to the extent that it traced the group of companies doctrine to the phrase "claiming through or under" is erroneous and against the well-established principles of contract law and corporate law; k. The group of companies doctrine should be retained in the Indian arbitration jurisprudence considering its utility in determining the intention of the parties in the context of complex transactions involving multiple parties and multiple agreements; l. At....