K.Bala Vishnu Raja v. Emaar Hills Township Private Limited and Others
Court – Telangana High Court
Citation – CC.R.P. Nos. 1014 and 1184 of 2024
Date – 19.08.2025
The Hon’ble Telangana High Court has held that an a Non-signatory must have close and live connection to the Arbitration Agreement for being made a part of Section 9 proceedings.
The Court held,
“40. The law has pushed the boundaries to pull in non-signatories to the arbitration agreement where the conduct of such parties reflects their intention to be bound by the arbitration agreement. The test is of the non-signatory having a live and proximate connection to the arbitration agreement so much so that the requirement of signing on the dotted line of a written arbitration agreement becomes irrelevant. In essence, the non-signatory cannot unburden itself from the obligations arising out of the arbitration agreement on the pretext of not being a party to it if there is evidence of an intimate connection between the non-party and the arbitration agreement.The enlarged canvas which the law now emphasises cannot be shrunk to ‘parties’ in the outdated sense.
41. We are hence constrained to disagree with the reason given by the Commercial Court for allowing deletion of the respondent Nos.1 and 3 from the array of parties in the C.O.P.No. 89 of 2022. The extent of involvement of the said respondents would show that they are not only proper but necessary parties to the dispute. In fact, the presence of the respondent Nos. 1 and 3 would, on all counts, be essential for the Court to decide on the merits of the section 9 application for preservation of the subject plot; not only against the signatory/respondent No.2 but also the non-signatories / respondent Nos.1 and 3 to the arbitration agreement.”
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