In Brief
MTNL filed claims against Canara Bank and its subsidiary following a dispute involving depository and banking services. The Bank challenged its impleading in arbitral proceedings. The Court held that implied consent to arbitration could be inferred from Canara Bank's consistent participation in all preceding dispute resolution forums—before the Committee on Disputes, Delhi High Court, and before the Sole Arbitrator. Applying the Group of Companies doctrine, the Court ruled both the Bank and its subsidiary should be bound to the arbitration. The matter was remitted to the Sole Arbitrator to continue proceedings, with no determination on the merits.
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