A director of a company cannot be made a party to an arbitration by invoking the ‘Group of Companies’ doctrine: Delhi HC [Vingro Developments Pvt Ltd v. Nitya Shree Developers Pvt Ltd]. The Delhi HC has held that a director of a company is merely an ‘agent’ of the company. Therefore, a director cannot be impleaded as a party to an arbitration by invoking the ‘Group of Companies’ doctrine. The decision is based on Section 230 of the Indian Contract Act, 1872, which says that an agent cannot personally enforce, nor be bound by, contracts on behalf of the principal.
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