Arbitrator – No powers to implead non-signatory third party to arbitration proceedings without consent
Excellent analysis of the distinguished authors on the Judgment of the High Court of Delhi that there is no provision of the Arbitration Act to implead third parties to the arbitration proceedings, its implications and salutary requirement of the procedure on the lines of Hong Kon & London Arbitration Rules for joinder of non-signatory parties to the arbitration proceedings.
M/s. Arupri Logistics Pvt Ltd Vs. Shri Vilas Gupta and others ( Arb.A. No.5 of 2022 with connected matters decided on 24.7.2023)
In the judgment of 134 pages, the Delhi High Court made detailed analysis of the provisions of the AA on the powers of the Arbitrator to implead non-signatories to the arbitration proceedings.
The appellants are not parties to the Memorandum of Family Settlement between the respondents inter-se but will be affected by the Award that may be passed by the Arbitrator on the disputes between the parties referred to arbitration by the Court.
On the application of the respondent no.1, the appellants M/s. Arupuri Logistics Pvt Ltd and M/s. Taurus India Ltd (who are not signatories to the MFS) were impleaded in the arbitration proceedings vide Order dated 23.12.2021 of the Arbitrator on the ground that they will have vital interest in the matter and any order or award will have consequences on them.
