TaxTMI 
TaxTMI 
2024 (2) TMI 1431
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....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 counsel further states that the respondent Nos. 3 to 5 needs to be impleaded as parties to the arbitration proceedings as they are signatories with the Loan Agreement. He further submits that the present case is squarely covered by the judgement of Cox & Kings Ltd. v. SAP India (P) Ltd., 2023 SCC OnLine SC 1634. 6. Mr. Jha, learned counsel for the respondents states that the respondent Nos. 3 to 5 are not signatory to the arbitration agreement and cannot be part of the arbitration proceedings. 7. He further states that the only parties who are signatory to the arbitration agreement can be involved in the arbitration proceedings and in case the respondent Nos. 3 to 5 are impleaded then M/s SMC Global Securities Limited who is the holding company of the petitioner should also be impleaded in the arbitration proceedings. 8. Mr....
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.......... 160. In Pravin Electricals Pvt Ltd. v. Galaxy Infra and Engineering Pvt Ltd., a Bench of three Judges of this Court was called upon to decide an appeal arising out of a petition filed under Section 11(6) of the Arbitration Act for appointment of sole arbitrator. The issue before the Court was the determination of existence of an arbitration agreement on the basis of the documentary evidence produced by the parties. This Court prima facie opined that there was no conclusive evidence to infer the existence of a valid arbitration agreement between the 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 allo....
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....greement to be decided by arbitral tribunal under Section 16. 165. In view of the discussion above, we arrive at the following conclusions: a. The definition of "parties" under Section 2(1)(h) read with Section 7 of the Arbitration Act includes both the signatory as well as non-signatory parties; b. Conduct of the non-signatory parties could be an indicator of their consent to be bound by the arbitration agreement; c. The requirement of a written arbitration agreement under Section 7 does not exclude the possibility of binding nonsignatory parties; d. Under the Arbitration Act, the concept of a "party" is distinct and different from the concept of "persons claiming through or under" a party to the arbitration agreement; e. The underlying basis for the application of the group of companies doctrine rests on maintaining the corporate separateness of the group companies while determining the common intention of the parties to bind the nonsignatory party to the arbitration agreement; f. The principle of alter ego or piercing the corporate veil cannot be the basis for the application of the group of companies doctrine; ....
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.... documents and provided a security to the petitioner towards the loan transaction. 18. Further, the fact that whether the respondent Nos. 3 to 5 can be bound by the Loan Agreement and can be impleaded as parties to the arbitral proceedings is left open for the to Arbitral Tribunal decide. Also, the Arbitral Tribunal will also decide whether M/s SMC Global Securities Limited is a proper and necessary party to the arbitral proceedings. 19. With these observations, the parties are referred to the arbitration for adjudication of their dispute arising from the Loan Agreement. The following directions are issued:- i) Justice Ali Mohammad Magray (Retd.) (Chief Justice of J&K) (Mob. No. 6005509928) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties. ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi hereinafter, referred to as the 'DIAC'). The remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the Arbitration & Conciliation Act, 1996. iii) The learned Arbitrator is requested to furnish a declaration in terms ....
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....m the Securities available in the Demat Account. In addition to the above, Moneywise or its group companies shall also have the right to sell or dispose or create any form of encumbrance over the Securities available in the above mentioned Demat Account for payment of any dues payable by the above mentioned Borrowers ar by melus or any of my/our family members, relatives, associates or any other entity associated to the undersigned to Moneywise or group companies. nWe further declare that this authority to Moneywise or its group companies is irrevocable and shall continue to be in full force and valid until expressly revoked with the written consent of Moneywise or its group companies. I/We hereby further undertake to hold Moneywise or group companies indemnified and saved harmless from and against all losses, damages, interest, charges, expenses and any detriment of whatsoever kind or nature consequent or attributed to Moneywise or group companies acting or purporting to act in the exercite of any right of set off or lien. Vishal Hemraj Oswal S/o Hemraj Pukhraj Oswal PAN- AAEPO2778D 22, Pratishta Awas, Near Jain Derasar Mandir Road Ghod....