SC Holds that Non-Signatory Can Be Treated as ‘Veritable Party’ to Arbitration Agreement Where Its Obligations Are Integral to Underlying Transaction

Oct 27, 2026

SC Holds that Non-Signatory Can Be Treated as ‘Veritable Party’ to Arbitration Agreement Where Its Obligations Are Integral to Underlying Transaction

The Supreme Court (‘SC’) in KKH Finvest (P) Ltd. v. Ashiesh Shukla^[1] held that a non-signatory could be treated as a ‘veritable party’ to an arbitration agreement where its obligations under a separate agreement formed an integral part of the underlying composite transaction and the surrounding circumstances demonstrated an intention to be bound by such agreement. The SC further observed that the intention of a non-signatory to be bound by an arbitration agreement could be gauged from the circumstances that surround the participation of such non-signatory party in the negotiation, performance and termination of the underlying contract.

[1] KKH Finvest (P) Ltd. v. Ashiesh Shukla, 2026 SCC OnLine SC 1498.

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