Balaji Steel Trade v. Fludor Benin S.A 2025 INSC 1342 - Arbitration Act - Foreign Seated Arbitration

Arbitration and Conciliation Act 1996 -Part I - Indian Courts have no jurisdiction to appoint an arbitrator for a foreign-seated arbitration, irrespective of the nationality or domicile of the parties (Para 30)- Part I of the 1996 Act has no application to arbitrations seated outside India. The seat has a juridical significance in arbitration law: it determines the courts that exercise supervisory jurisdiction over the arbitral proceedings. (Para 24)

Arbitration and Conciliation Act 1996 - Section 8,11(6) -Once there is refusal to refer to arbitration under Section 8 of the Act, 1996, parties thereafter cannot seek reference to arbitration under Section 11(6) as the earlier refusal under Section 8 amounts to issue estoppel. (Para 37)

Group of companies doctrine- The doctrine is not an automatic talisman for impleading every corporate entity of a group into arbitral proceedings- The doctrine is applied sparingly and only where there is compelling evidence of mutual intention of all the parties concerned to bind a non-signatory to an arbitration agreement. Such intention may be inferred from direct participation in negotiation, performance of contract, or from the role played in the overall transaction. However, a mere overlap of shareholding, or the fact that entities belong to the same corporate family, is not by itself sufficient.  (Para 40)

Arbitration Clause - Where several contracts coexist, the arbitration clause of the mother agreement governs the dispute unless a later contract unequivocally replaces it. (Para 29)

Indian Contract Act, 1872 - Section 62- The absence of cross-references or language of substitution makes it impossible to infer novation under Section 62. (Para 29)

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