S.N.Prasad,M/S Hitek ... vs M/S Monnet Finance Ltd.& Ors

The Supreme Court held that a guarantor who is not a party to the loan agreement cannot be compelled to arbitrate disputes arising from that agreement under Section 11 of the Arbitration and Conciliation Act, 1996. The Court emphasized that arbitration agreements are consensual and the absence of the guarantor's consent to the arbitration clause precludes their inclusion in arbitration proceedings. The Court upheld the High Court's dismissal of the appellant's challenge to the arbitration awards, affirming that the appellant, not being a signatory to the agreements, cannot be subjected to the arbitration award.