#privity of contract

The NCDRC held that the master group personal accident policy, which ceased in August 2008 with no premiums paid thereafter, could not be invoked for a 2010 accident. Consequently, the insurer was relieved of liability, underscoring that policy termination extinguishes coverage for future claims. This ruling affects all holders of terminated group policies and insurers facing post-termination claims.

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.

Bombay High Court dismisses 31 interim applications by non-parties to an arbitration agreement, holding that Section 9 jurisdiction is strictly limited to signatories. The ruling reinforces contractual privity in arbitration, impacting commercial disputes where third parties seek court intervention without being bound by the arbitration clause.

The Punjab & Haryana High Court ruled that a mortgagee who disclaims interest in prior litigation is estopped from later claiming insurance proceeds, reinforcing that judicial admissions bind parties even against contractual rights. This decision underscores the irrevocable nature of admissions in legal proceedings, impacting mortgagees and insurers in similar disputes.

Punjab & Haryana HC rules that employees acting under service rules cannot be made defendants in a termination suit unless they are personally liable or in breach of official duty. The court reinforces that privity of contract is a threshold requirement for joinder, protecting employees from being unnecessarily dragged into disputes where no direct contractual relationship exists with the plaintiff.

Bombay High Court rules that defendants seeking leave to defend in a summary suit must deposit the outstanding principal amount as a precondition, even if triable issues like stamping or damages exist. This sets a precedent for stricter financial security requirements in summary proceedings under Order XXXVII CPC, impacting commercial litigation strategy.

Bombay High Court sets aside arbitral award against directors lacking privity of contract or statutory liability under MSCS Act, reinforcing party autonomy in arbitration.

Delhi High Court rules that possession without lawful title is unauthorized, and termination of tenancy extends to sub-lessees even without privity of contract.

Bombay High Court holds that a non-contracting party may be sued for tortious interference with contractual obligations, rejecting threshold rejection of plaint under Order VII Rule 11 CPC.

Bombay High Court holds that prosecution under Section 138 NI Act against partners requires clear allegation of involvement and privity of contract; mere designation insufficient.