Cheran Properties Limited vs Kasturi and Sons Limited and Ors

Bench: 3 — D.Y. Chandrachud

In Brief

Cheran Properties Limited, a nominee of KCP, acquired shares in Sporting Pastime India Limited under a share purchase agreement dated 19 July 2004 that contained an arbitration clause. After disputes arose, the arbitral tribunal awarded shares to Kasturi & Sons Limited. The NCLT granted rectification of the share register. Cheran Properties challenged this, arguing it was not bound by the arbitration agreement as a non-signatory. The Supreme Court dismissed the appeal, holding that as a person claiming under KCP (a signatory), the appellant was bound by the award under Section 35 of the Arbitration and Conciliation Act. The group of companies doctrine applied, and the NCLT had competent jurisdiction to rectify the register to enforce the award.

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Arbitration and Conciliation Non-signatories to arbitration agreements Group of companies doctrine Companies Act Share transfers and rectification of register Enforcement of arbitral awards

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