Arbitration is based on the Arbitration and Conciliation Act 1996.
SEC 2 (1):
- "Arbitration" is any litigation conducted or not by a permanent arbitral
- Arbitration Agreement means an agreement referred to in Section 7
- Arbitral tribunal means a single arbitrator or panel of arbitrators
- Party means a party to a litigation agreement
So generally arbitration proceedings are between parties who have entered the
arbitration agreement, a third party cannot enter proceedings expect as per the
conditions given in case of MTNL Vs Canara Bank.
This article is about power of
arbitrator to implead third party in proceedings.
Powers of Arbitrator:
Power to take interim action
Pursuant to Section 17 of this Act, interim action may be sought before the
Arbitration Tribunal at any time during the arbitration proceedings or after the
arbitral award has been made.
The Arbitration Tribunal has the power to take an
interim action in this regard:
- The appointment of a parent to a minor or mentally ill person;
- Interim custody and sale of goods subject to arbitration;
- Securing the disputed amount in litigation;
- Withholding, restraining or inspection of any property or objects subject to
- Appointment of receiver;
- Such other interim measures are required in the eyes of the court.
Cases Regarding Power Of Arbitrator To Implead Third Party.
Madras High Court
Mr.V.G.Santhosam vs Mrs.Shanthi Gnanasekaran on 24 February, 2020
101. There are no clear provisions in the Arbitration Act for the enforcement of
a third party. There is not even a provision that can be found by law. Following
the judgment of the Supreme Court in the case of Chloro Controls India (P) Ltd.,
CMANos.4465, 4467 to 4469 2019, if the Arbitrator requests an individual to
effectively resolves disputes under the Arbitration Act.Conclusion
Justice Subramaniam said the court had no hesitation in concluding that the
arbitrator had exercised additional jurisdiction beyond the provisions of the
Arbitration Act and the scope of the contractual proceedings. Prejudice refers
to a person involved in a dispute under the Arbitration Act, 1996 and the
Arbitration Agreement under the jurisdiction of the Arbitration Tribunal "shall
have no application."
The impact of the application of this theory will lead to the exercise of the
inherent powers of the court. Therefore, the rights of a third party to the
Arbitration Agreement cannot be judged at the subsequent or final hearing of
- C.M.A.Nos.4465, 4467 to 4469 of 2019