
Case Law Analysis
|Madhya Pradesh High Court
Arbitration Agreement | Non-Signatories Bound Only by Clear Consent or Veritable Party Status: MP HC
The Madhya Pradesh High Court has ruled that business relationships, invoice references, or assignment of rights alone cannot bind non-signatories to arbitration clauses. Only explicit consent or demonstrable status as a veritable party to the contract can create privity of contract for arbitration purposes, setting a strict threshold for enforcing arbitration against third parties in commercial disputes.