The Delhi High Court passed a comprehensive judgment on the 14th November 2017 in the case of GMR Energy Limited v. Doosan Power Systems India Pvt. Ltd which could contribute immensely to the arbitration jurisprudence in India.
The matter regarded the ongoing arbitration between GMR Chhattisgarh Energy Limited (GCEL), GMR Infrastructure Limited (GIL), GMR Energy and Doosan India for development of a 1350 MW Coal Fired Thermal Power Plant at Raikheda in Chhattisgarh.
GMR Energy sought a decree of permanent injunction restraining Doosan India from continuing with the arbitration proceedings before the SIAC, claiming that it was not a signatory to the arbitration agreement entered into by GCEL and GIL with Doosan.
The Delhi High Court had initially granted an ex-parte injunction in favour of GMR Energy. However, in the judgment passed on the 14th November, it referred GMR Energy, a non-signatory to an arbitration agreement, to submit to ongoing arbitration proceedings in Singapore governed by SIAC rules.
The Court applied the doctrine of alter ego while subjecting the non-signatory to the ongoing arbitration.