India’s tryst with the group of companies doctrine: the end or the beginning of a new dawn?

Abstract

Recently, in Cox & Kings Ltd. v. SAP India (P) Ltd (2022), the Supreme Court of India called into question the doctrinal ingredients and applicability of the group of companies doctrine in India. The Apex Court doubted the correctness of its consistent line of earlier decisions, wherein the group of companies doctrine had been strongly embraced as a tool to bind non-signatories to arbitration. Holding that the group of companies doctrine appears to have been based more on economics and convenience rather than law, the Supreme Court has referred several questions regarding the validity and applicability of the doctrine in India to a larger bench for consideration. The purpose of this case note is to summarize and comment on the judgment of the Supreme Court. The case note critically analyses the concerns and questions raised by the Supreme Court. In doing so, the case note concludes that there is sufficient basis for the existence and application of the group of companies doctrine under the [Indian] Arbitration and Conciliation Act, 1996.