Thread by @LawBeatInd

#SupremeCourt Constitution Bench to consider if 'group of companies' doctrine should be read into Section 8 of the Arbitration Act or whether it can exist independent of any statutory provision

Bench assembles, hearing begins.
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SG Tushar Mehta: If we can begin with the questions formulated in the reference orders as it may have ramifications..
Senior Advocate Kapil Sibal, appearing for intervenors: We would need some time to prepare for this.
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Senior Advocate Hiroo Advani makes submission on behalf of the petitioner.
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Advani takes court through the facts of the case.
CJI: Let us see the referral order.
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Advani: Agreement was in relation to a single particular contract.
Advani refers to Section 35 of the Arbitration Act which deals with finality of arbitral awards.
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Advani: Parties must have a natural relation with the contract and not be a part of any group.
CJI: Justice Kant held that it was not enough to be a part of the economic reality, you have to be part of the contract in some way.
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Bench discusses.
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Advani: There are 20 countries following the UNCITRAL law has accepted the 'group of companies doctrine'. The observation made by Justice Ramana, that only two countries have accepted, is factually incorrect.
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Advani refers to the case of Sukanya Holdings vs. Jagdish Pandya.
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Advani: This applies to family run companies, and is not just limited to India, there are many international companies which follow this principle.
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SC: We will come back at 2 PM post lunch. Bench rises.
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CJI: No requirement under law that a contract whose performance is sought has to be a specific performance contract.
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Sr Adv AM Singhvi: We are not prepared for appearing before a Constitution bench, also this reference is not needed at all.
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CJI asks Singhvi: How do we iron out the issues flagged by Justice Kant?
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#SupremeCourtOfIndia to resume hearing tomorrow at 10:30 am

#CJI : It is good that SG is intervening since it's a central legislation, it will impact the arbitration scenario.