arbitration proceeding

Supreme Court affirms arbitrators’ power to implead non-signatories: Another pro-arbitration ruling or a step too far?

In Adavya Projects Pvt. Ltd. v M/s Vishal Structurals Pvt. Ltd.[1](“Judgment”), the Supreme Court of India (“Court”) has held that the arbitral tribunal has the power to implead parties to arbitration proceedings even where the said parties were neither issued an arbitration notice nor made party to court proceedings seeking appointment of arbitrators. The Judgment is significant because it holds that even if the claimant issues an arbitration notice to only one counterparty initially, it can subsequently include additional counterparties when filing its statement of claim before the arbitral tribunal. The Judgment reconciles the divergent views taken by the Delhi High Court[2] and the Bombay High Court[3] on the issue, but the implications for additional counterparties, who may be joined after the arbitral tribunal has been constituted, could be significant.Continue Reading Supreme Court affirms arbitrators’ power to implead non-signatories: Another pro-arbitration ruling or a step too far?

INTRODUCTION

The evolution of arbitration in India has been marked by a steadfast judicial commitment to enhancing its merits, particularly its efficiency, speed, and limited judicial intervention. This development offers a credible alternative to the overburdened judicial system. However, courts have remained the cornerstone of supervisory jurisdiction, ensuring that arbitral awards adhere to the principles enshrined in Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”).[2] Among the grounds for challenging awards, “patent illegality” under Section 34(2A) of the Act, initially conceived as a subset of “public policy”, was introduced as a distinct ground to address blatant legal errors visible on the face of an award by way of Arbitration and Conciliation (Amendment) Act, 2015.[3] Today, patent illegality stands as one of the widely employed grounds for challenge, yet its contours remain vague.Continue Reading DMRC V. DAMEPL and the 2024 Amendment Bill: Where Patent illegality stands in Arbitration?