Note: Group of Companies Doctrine: The "Group of Companies" doctrine stipulates that an arbitration agreement may bind a non-signatory if it belongs to the same corporate group and there is mutual intent among the parties to include it.

Facts & Background:

• Mahanagar Telephone Nigam Ltd, a telecommunication company, was the Appellant.
• Canara Bank was the Respondent No. 1 and Can Bank Financial Services Ltd (CANFINA), the wholly owned subsidiary of the Canara Bank, was the Respondent No.2.
• In 1992, MTNL issued bonds worth ₹425 crores, placing ₹200 crores with CANFINA under an MOU. CANFINA failed to pay ₹150 crores of the deposit. MTNL did not service the interest on bonds, leading to a dispute about registration and cancellation of bonds.
• Canara Bank, a wholly-owned subsidiary of CANFINA, purchased bonds worth ₹80 crores and requested their registration. MTNL refused, citing CANFINA's non-payment, and later canceled the bonds.
• Canara Bank, in W.P. (Civil) No. 560 of 1995, challenged the cancellation of bonds before the Delhi High Court. The Writ Petition was dismissed on the ground of the availability of an alternative remedy, and the matter was referred to the Company Law Board under Section 111 of the Companies Act, 1956.
• The matter was referred to the Committee on Disputes and subsequently for arbitration. Justice A.P. Shah (Retd.) was appointed as the sole arbitrator.
• The arbitrator excluded CANFINA as a party, leading to objections from MTNL. Despite further applications and clarifications, the arbitration proceeded without CANFINA.
• Aggrieved by the Delhi High Court’s orders, MTNL filed a Special Leave Petition on 08.05.2014, issuing notice to all Respondents, including CANFINA.
  

Main Issue:

• Whether there was a valid arbitration agreement between MTNL, Canara Bank, and CANFINA?
• Can CANFINA, not a party to the arbitration agreement between Canara Bank and MTNL, be impleaded in the arbitration proceedings? (Paragraph 8)