Supreme Court allows ONGC plea, makes Jindal Drilling and Industries party to arbitration with Discovery Enterprises

In a big relief to state-run hydrocarbon explorer ONGC, the Supreme Court asked Jindal Drilling and Industries (JDIL) to participate in an arbitration proceeding even though the original agreement was between ONGC and Discovery Enterprises (DEPL), a DP Jindal Group company. JDIL also belongs to the DP Jindal group of companies.

Invoking the ‘Group of Companies’ doctrine, the court held that a company that is not a signatory to a contract containing an arbitration clause can be still made a party to the arbitration proceedings if it is an alter ego of the party that executed the arbitration agreement.