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Non-signatory/third party has direct relationship with the signatory to arbitration agreement. The transaction amongst parties (signatory and non-signatory) is a composite transaction. There exists commonality of the subject matter under the agreements governing relationship between a parties.
Under Indian law, the kinds of disputes that can't be resolved by arbitration include: Criminal offences. Matrimonial disputes. Guardianship matters. Insolvency petitions.
First, any valid arbitration agreement must reflect the conscious, mutual and free will of the parties to resort to arbitration and not to other means of dispute resolution, including State courts. The consent of both parties to submit their dispute to arbitration is the cornerstone of arbitration.
While you technically have the choice not to sign an arbitration agreement that appears to be skewed more to your employer's benefit, the employer can simply rescind its offer of employment if you refuse to sign.
Superior Court, provides another example of how California courts scrutinize what may otherwise appear to be reasonable arbitration rules. Parties that are not signatories to an arbitration agreement may still, in certain circumstances, enforce the agreement to compel arbitration when litigation arises.
Generally, disputes in rem which are regarding a thing or property can't be resolved through arbitration, while disputes in personam regarding a selected person are often.
Section 7 of the Arbitration and Conciliation Act, 1996 talks about arbitration agreement and its ingredients. It also makes it mandatory to have the agreement in writing. It has to be signed by both the parties.
The Madras High Court has ruled that non-signatories to arbitration agreement can be referred to arbitration by invoking the 'doctrine of alter ego' only in exceptional cases where there is convincing evidence that the non-signatory is the 'alter ego' of the signatory.