Critical Analysis of the Position of Law on Joinder

Joinders is the process used in arbitration to add on-signatories to the arbitration agreement and arbitration proceedings. Increasing the scope of the arbitration proceedings should be done only after detailed analysis of the factual position and should be limited to cases where the third party’s inclusion is absolutely necessary to deliver justice. The Arbitration and Conciliation Act, 1996 ("Arbitration Act") does not lay down a procedure for adding non signatory or third parties to the arbitration. The courts first determined its legal footing in the case of Dow chemical v. Isover Saint Gobain. The reason behind allowing joinders was the group of companies doctrine and the presence of mutual intention to be included in the arbitration. Since then, the evolution of joinders has evolved due to case law and the 2015 amendment to the Arbitration Act.