Cheran Properties Limited vs Kasturi and Sons Limited and Ors

Bench: 3 — D.Y. Chandrachud

In Brief

Cheran Properties Limited, which holds shares as a nominee of KC Palanisamy (KCP) under a 2004 share purchase agreement, challenged an arbitral tribunal award directing share transmission to the opposing party. The award became final after all appeals failed. The NCLT rectified the share register as required to effectuate the award's transmission mandate. The Supreme Court dismissed Cheran's appeals, holding that as a nominee claiming under KCP (a signatory), Cheran is bound by the arbitration agreement and award under Section 35 of the Arbitration Act. The Court applied the group of companies doctrine, finding the parties' conduct and written correspondence demonstrated mutual intent to bind both KCP and his nominee companies to the agreement's terms, including its arbitration clause.

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Arbitration and Conciliation Non-signatory Parties to Arbitration Group of Companies Doctrine Share Transfer and Company Law Arbitral Award Enforcement NCLT Jurisdiction Corporate Nominee Doctrine

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