The Indian Supreme Court finding on the 'group of companies' doctrine: What this means for energy sector arbitrations
In Cox and Kings Ltd. v. SAP India Pvt. Ltd., the Indian Supreme Court upheld the 'Group of Companies' doctrine, allowing arbitration agreements to bind non-signatory affiliates. We consider this from the perspective of energy sector project contracts and any arbitrations which might arise. There are unavoidable realities when it comes to negotiating these contracts and performing them, typically involving different entities from a single company group, with the expectation that only the signatory to the contract will be party to any arbitration. In this update we assess balancing these realities against what the Indian Supreme Court has expressed unequivocally as the Indian law position.