#Veritable Party Doctrine

The Supreme Court held that a non-signatory may be joined as a veritable party in arbitration when a nexus with the arbitration agreement exists, upholding the referral court’s jurisdiction under Section 11 of the ACA, 1996 and clarifying doctrine scope.

Even without signing the MoS, a shareholder named in its schedule is deemed a veritable party and can be forced into arbitration under the Arbitration Act. The decision widens arbitration’s reach to parties whose performance is essential to a deal. It affects buyers, sellers and related stakeholders in corporate share-purchase transactions.