INDIA Law and Practice Contributed by: Amit Mishra and Mitakshara Goyal, Svarniti Law Offices
6. Preliminary and Interim Relief 6.1 Types of Relief
If the party seeking referral to arbitration fails to act before filing its first statement of defence in court, it is deemed to have waived its right to object, and the court proceedings will continue. The court will only refuse to refer the matter to arbitration if it finds that no valid arbitration agreement exists or that the dispute is manifestly non-arbitrable. 5.6 Jurisdiction Over Third Parties Indian law is clear that consent is the cornerstone of arbitration: arbitral tribunals ordinarily cannot assume jurisdiction over individuals or entities that are not par - ties to, or signatories of, the arbitration agreement. However, an exception exists under the “group of companies” doctrine, which is now firmly recognised by the Supreme Court and allows arbitral tribunals to bind non-signatory companies within a corporate group to an arbitration agreement, but only in rare and specific circumstances. For the doctrine to apply, it must be established that the parties – through their conduct, the structure of their commercial relationship or other relevant fac - tors – intended for the non-signatory company to be bound by the arbitration agreement. In Cox & Kings Ltd. v SAP India Pvt. Ltd. (2023), the Supreme Court emphasised that this is not a matter of simply piercing the corporate veil or disregarding corporate separate - ness; rather, the focus is on discerning the true inten - tion of the parties involved in complex transactions and group structures. Furthermore, in Ajay Madhu- sudan Patel v Jyotrindra S. Patel (2024), the Supreme Court held that a non-signatory’s inclusion must be decided by the arbitral tribunal and not the court. The doctrine is applied with caution and only where it is clear that the non-signatory’s involvement in the underlying transaction and relationship with the signa - tories demonstrates mutual intent to arbitrate disputes together. Furthermore, in ASF Buildtech Private Lim- ited v Shapoorji Pallonji and Company Private Limited (2025), the Supreme Court held that an arbitral tribu - nal has the authority to implead non-signatories to an arbitration agreement on its own, provided it applies established legal doctrines like the group of compa - nies, alter ego or composite transaction. In this case, ASF entities were impleaded based on their economic unity and involvement in the contract.
Arbitral tribunals in India have the authority to grant interim measures during the course of arbitration pro - ceedings, as provided under Section 17 of the ACA. These interim orders are binding on the parties and are enforceable as if they were orders of the court. The powers of the arbitral tribunal to grant interim relief are on a par with those of the courts, following amend - ments to the ACA. Tribunals can issue a broad range of interim measures that they consider just and convenient, including: • appointing a guardian for a minor or person of unsound mind for the arbitration; • ordering the preservation, interim custody or sale of goods involved in the dispute; • securing the amount in dispute; • requiring the detention, preservation or inspection of property or items relevant to the dispute; • granting interim injunctions; and Indian courts are empowered under Section 9 of the ACA to grant interim relief before, during and even after arbitral proceedings, but before the enforcement of an award. This relief can include a wide range of measures, such as injunctions, the preservation or custody of goods, securing the disputed amount, appointing guardians and appointing receivers. Courts may grant such relief when the arbitral tribunal is not yet constituted, or when relief from the tribunal would be impractical or ineffective, especially in cases involving third parties or situations where the tribunal’s orders cannot be enforced against non-signatories. Interim Relief in Foreign-Seated Arbitrations Indian courts can also grant interim relief in support of arbitrations seated outside India. The scope of relief is similar to that available in domestic arbitrations, including injunctions, the preservation of assets and other protective measures. • appointing receivers. 6.2 Role of Courts Role of Courts in Interim Relief
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