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The SC held that once a sole arbitrator is appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Court ceases to have jurisdiction to entertain further applications related to the arbitration proceedings, including prayers for non-signatories to intervene or remain present. The applications by non-signatories seeking such permission were deemed misconceived and an abuse of process, as the Act does not provide for observers or intervention by non-parties in arbitration. The impugned order permitting non-signatories to attend the arbitration was set aside for lacking statutory basis. Consequently, the Court allowed the appeal, quashed the interim orders, and confirmed that the parties must proceed in accordance with the arbitration order dated 22.03.2024, thereby affirming the finality of the arbitral appointment and precluding further judicial interference.
The SC held that once a sole arbitrator is appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Court ceases to have jurisdiction to entertain further applications related to the arbitration proceedings, including prayers for non-signatories to intervene or remain present. The applications by non-signatories seeking such permission were deemed misconceived and an abuse of process, as the Act does not provide for observers or intervention by non-parties in arbitration. The impugned order permitting non-signatories to attend the arbitration was set aside for lacking statutory basis. Consequently, the Court allowed the appeal, quashed the interim orders, and confirmed that the parties must proceed in accordance with the arbitration order dated 22.03.2024, thereby affirming the finality of the arbitral appointment and precluding further judicial interference.
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