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India Supreme Court: Tribunal can join non-signatories; notice of arbitration (section 21) and section 11 joinder not prerequisites; consent to arbitrate decided by tribunal (Adavya Projects v Vishal Structurals)

Published on: 23 June 2025

Published by a LexisNexis Arbitration expert

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Article summary

Adavya Projects Pvt. Ltd vs M/S Vishal Structurals Pvt. Ltd Civil Appeal No 5297 of 2025

What are the practical implications of this case?

Under section 21 of the A&C Act, a party need not name all parties in the notice of arbitration (NOA), nor in an application under section 11 seeking appointment of an arbitrator (s 11 Application).
The arbitral tribunal may join a party at a subsequent stage; its jurisdiction does not derive from the NOA or the s 11 Application.
The Supreme Court has reiterated the tribunal’s authority to determine whether a party has consented to arbitration.
Where a non-signatory is impleaded in a s 11 Application, the court must take a prima facie view on the existence of an arbitration agreement between the parties to that application; this view is not binding on the arbitral tribunal.
In the end, the arbitral tribunal must resolve the question on the merits, relying on the evidence and the relevant legal principles...

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