Non - Signatories and Their Role in Arbitration Proceedings in India : Explained by Supreme Court

Non Signatories and Their Role in Arbitration Proceedings in India : Explained by Supreme Court 

It has been held in Kamal Gupta v. L.R. Builders Pvt Ltd [2025] GCtR 1418 (SC) that the provisions of Section 35 of the Arbitration and Conciliation Act, 1996 are clear inasmuch as an award passed would only bind parties to the arbitration and persons claiming under them. The expression ‘party’ has been defined by Section 2(h) of the Act to mean a party to an arbitration agreement.

The arbitration proceedings can take place only between parties to an arbitration agreement and Section 35 of the Act does not make the arbitral award to be passed binding on non-signatories to such agreement.

Permitting a stranger to remain present in the arbitration proceedings especially when the award to be passed would not be binding on such stranger would be charting a course unknown to law. The remedy, if any, to a party who is not a signatory to the agreement is available under Section 36 of the Act if such award is sought to be enforced against him.