Article
Supreme Court Holds Non-Signatory Shareholder A 'Veritable Party' Where Share Transfer Was Integral To Composite Transaction
In KKH Finvest Pvt. Ltd. & Anr. v. Ashiesh Shukla & Ors., the Supreme Court considered whether a shareholder who had not signed a Memorandum of Settlement containing an arbitration agreement could nevertheless be treated as a "veritable party" to that agreement and be referred to arbitration. The Court held that the absence of a signature was not determinative where the surrounding contractual framework and the non-signatory's performance demonstrated an intention to participate in, and be bound by, the composite transaction.
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