Consent and Third Parties Revisited: When Arbitration Binds the Unbound

The Indian Contract Act, 1872, establishes the fundamental nature of consent in any contractual agreement, a principle that also extends to arbitration. The establishment of arbitration, as opposed to judicial remedy, is due to its consensual nature. Traditionally, only those parties who consented could participate in arbitration. Third parties or non-signatories could not participate, as they were rendered to be in contravention of the principles of the privity of contract or party autonomy. However, there is an increasing need to redefine the understanding of consent within the arbitrational framework to reflect the complexities of modern economic dynamics, contracts involving multiple parties, and the integration of global economies.