Supreme Court’s Landmark Ruling on Impleadment of Parties in Arbitration
By Abhishek Jat, Advocate In a significant judgment delivered in Civil Appeal No. 5297 of 2025, the Supreme Court of India has clarified the legal framework concerning the addition of parties to arbitral proceedings under the Arbitration and Conciliation Act, 1996 (ACA). The decision addresses whether the service of a notice invoking arbitration under Section 21 and the inclusion of a party in a Section 11 application are indispensable prerequisites for an arbitral tribunal to assume jurisdiction over that party. Factual Matrix The dispute originated from a Limited Liability Partnership (LLP) agreement between Adavya Projects Pvt. Ltd. and M/s Vishal Structurals Pvt. Ltd., executed for the purpose of undertaking oil and gas sector projects. While only the appellant and respondent no. 1 were signatories to the LLP agreement, the agreement itself designated respondent no. 3 as the Chief Executive Officer of the LLP (respondent no. 2), and provided a broad arbitration clause encompa...