SC Clarifies Non-Signatories in Arbitral Proceedings and Limits of Judicial Intervention Post-Appointment of Arbitrator

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Sep 30, 2025

SC Clarifies Non-Signatories in Arbitral Proceedings and Limits of Judicial Intervention Post-Appointment of Arbitrator

The Supreme Court of India (‘SC’), in Kamal Gupta v. L.R. Builders Pvt. Ltd,^[1] held that non-signatories to an arbitration agreement cannot attend arbitration hearing proceedings, as permitting a stranger to do so would result in a breach of the statutory confidentiality obligations. The SC further held that once an arbitrator is appointed under a Section 11 application (under the Arbitration and Conciliation Act, 1996), the referring Court becomes functus officio and cannot pass any further ancillary directions concerning the arbitration proceedings.

[1] Kamal Gupta v. L.R. Builders (P) Ltd., 2025 SCC OnLine SC 1691.

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