ADAVYA PROJECTS PVT. LTD. versus M/S VISHAL STRUCTURALS PVT. LTD. & ORS

ADAVYA PROJECTS PVT. LTD. versus M/S VISHAL STRUCTURALS PVT. LTD. & ORS

While a s.21 notice is mandatory to fix commencement of arbitration for limitation and related purposes and s.11 proceedings require a prima facie examination of an arbitration agreement, neither non-service of s.21 nor non-joinder in s.11 conclusively deprives an arbitral tribunal of jurisdiction to implead a person; the tribunal’s jurisdiction rests on consent evidenced in the arbitration agreement (s.7) and under s.16 (kompetenz-kompetenz) the tribunal must determine whether a non-signatory is a party to the arbitration agreement; on the facts respondent nos.2 and 3 had by conduct and role under the LLP Agreement consented to be bound and must be impleaded, and the High Court order...

Parties
Appellant: Adavya Projects Pvt. Ltd.; Respondent: M/s Vishal Structurals Pvt. Ltd.; Respondent: Vishal Capricorn Energy Services LLP; Respondent: Kishore Krishnamoorthy
Jurisdiction
India
Judgment Date
16 April 2025
Procedural Posture
Civil Appeal
Outcome
Appeal allowed
Legal Topics
Section 21 Notice, Section 11 Appointment of Arbitrator, Section 16 Kompetenz Kompetenz, Joinder of Parties, Non Signatories to Arbitration Agreement, Arbitral Tribunal Jurisdiction, Limitation, Impleading Parties
Arbitration Civil Procedure Contract Law Company/llp Law Limitation Law Section 21 Notice Section 11 Appointment of Arbitrator Section 16 Kompetenz Kompetenz +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 22 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Adavya Projects Pvt. Ltd.

Appellant

M/s Vishal Structurals Pvt. Ltd.

Respondent

Vishal Capricorn Energy Services LLP

Respondent

Kishore Krishnamoorthy

Respondent

Procedural Posture

Civil Appeal

Legal Issues

  1. 1 Whether service of a Section 21 notice and joinder in a Section 11 application are prerequisites to implead a person/entity as a party to the arbitral proceedings
  2. 2 What is the source of jurisdiction of an arbitral tribunal over a person/entity sought to be impleaded as a party to arbitral proceedings and the relevant inquiry under Section 16
  3. 3 Whether respondent nos. 2 and 3 are parties to the arbitration agreement and can be impleaded

Ratio Decidendi

While a s.21 notice is mandatory to fix commencement of arbitration for limitation and related purposes and s.11 proceedings require a prima facie examination of an arbitration agreement, neither non-service of s.21 nor non-joinder in s.11 conclusively deprives an arbitral tribunal of jurisdiction to implead a person; the tribunal’s jurisdiction rests on consent evidenced in the arbitration agreement (s.7) and under s.16 (kompetenz-kompetenz) the tribunal must determine whether a non-signatory is a party to the arbitration agreement; on the facts respondent nos.2 and 3 had by conduct and role under the LLP Agreement consented to be bound and must be impleaded, and the High Court order...

Court Disposition

Appeal allowed

Orders

  • Impugned High Court judgment and order dated 08.07.2024 in ARB.A.(COMM.) No. 24 of 2024 set aside
  • Respondent nos. 2 and 3 to be impleaded as parties before the arbitral tribunal