VidhiSangh

Supreme Court of India · 01/07/2019

BENCKISER (INDIA) PRIVATE LIMITED versus REYNDERS LABEL PRINTING INDIA PRIVATE LIMITED AND ANR.

[2019] 8 S.C.R. 966 · 2019 INSC 700

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Summary

The Belgian group company could not be compelled to arbitrate merely because it belonged to the same corporate group as the Indian signatory. The applicant failed to establish its assent or that the negotiator represented it; he was an employee of the Indian company. The application failed against the foreign respondent, but on the Indian respondent’s express agreement the Court appointed a sole arbitrator for domestic commercial arbitration between the two Indian parties.

Issues

  1. Whether the non-signatory Belgian company intended to be bound by the arbitration agreement.
  2. Whether an arbitrator could nevertheless be appointed for the domestic dispute.

Held

Result

Application dismissed against respondent 2. Justice Badar Durrez Ahmed, former Chief Justice of the Jammu & Kashmir High Court, appointed sole arbitrator for domestic commercial arbitration at New Delhi between the applicant and respondent 1 under the 1996 Act. No costs; pending interim applications disposed of.

Judgment PDF: Supreme Court of India, [2019] 8 S.C.R. 966.