Delhi High Court Re-Affirms Discretion Of Arbitral Tribunal To Implead 'Non-Signatory' As 'Necessary Party' In Arbitration Proceedings
The Delhi High Court bench of Justice Subramonium Prasad has reaffirmed that an Arbitral Tribunal has the authority to implead non-signatories to an arbitration, provided they are deemed 'necessary parties' to the proceedings. The court was hearing an application u/s. 11(6) of the Arbitration and Conciliation Act for the appointment of Arbitrator to adjudicate disputes arising under...
The Delhi High Court bench of Justice Subramonium Prasad has reaffirmed that an Arbitral Tribunal has the authority to implead non-signatories to an arbitration, provided they are deemed 'necessary parties' to the proceedings.
The court was hearing an application u/s. 11(6) of the Arbitration and Conciliation Act for the appointment of Arbitrator to adjudicate disputes arising under a Standard Transportation agreement and Customs Clearing Agent agreement. The petitioner had impleaded Respondent no.2, a non-signatory to the agreements.
The court permitted the Petitioner to delete Respondent No. 2 from the array of parties with the liberty to move an application under Order I Rule 10 of the CPC before the Arbitrator, seeking impleadment of Respondent No.2 as a 'necessary party'. The court appointed an Arbitrator.
Case Title: Dixon Technologies (India) Limited vs. M/s Jaiico & Anr.
Citation: 2025 LiveLaw (Del) 194
Case Number: ARB.P. 224/2025
For Petitioner: Mr. Tushar Kumar, Mr. Ishan Sehgal, Ms. Varnika Bajaj, Mr. Junaid Qureshi, Ms. Sonal Gupta, Advs.
For Respondents: Ms. Pallavi Singhal, Mr. Vibhu Nandan and Mr. Divyansh Singh, Advocates for R-2.
Date of Order: 06.02.2025