Non-signatory to an Arbitration Agreement – Whether can be subjected to arbitration?

All the disputes and differences between the parties have to be referred to an Arbitrator pursuant to Arbitration Agreement / clause. However, there are instances, wherein, claims arising out of such disputes and differences cannot be adjudicated without arraying a ‘third party’ who is non-signatory to the Arbitration Agreement. In other words, there cannot be a proper adjudication of claims without arraying such ‘third party’ as a necessary defendant / opposite side in a claim petition.

In such cases, the issue that arises is whether such ‘third party’, who is non-signatory to an Arbitration Agreement, be referred to Arbitration? Generally, a non-signatory will not be subjected to an Arbitrator. However, there are exceptions. Recently, the Hon’ble Rajasthan High Court in Jitender Singh & Ors. vs. Viyom Networks Limited held that when both signatory and non-signatory file a common affidavit, then in such a case, the dispute can be referred to an Arbitrator.