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Supreme Court Of India

(From : Andhra Pradesh)

Hon'ble Judge(s): R. V. Raveendran, A. K. Patnaik , JJ

Arbitration and Conciliation Act (26 of 1996) , S.11(6)— Petition for appointment of arbitrator - Impleadment as respondent - Construction agreement between developer, owner of land and purchaser - Appellant Bank was not party to that agreement - Agreement between bank and purchaser was separate agreement - Arbitration clause of construction agreement invoked by purchaser - Bank being not party to construction agreement cannot be impleaded as party respondent. The existence of an arbitration agreement between the parties to the petition under S. 11 of the Act and existence of disputes to be referred to arbitration are conditions precedent for appointing an Arbitrator under S. 11 of the Act. A dispute can be said to arise only when one party to the arbitration agreement makes or asserts a claim/demand against the other party to the arbitration agreement and the other party refuses/denies such claim or demand. If a party to an arbitration agreement, files a petition under S. 11 of the Act impleading the other party to the arbitration agreement as also a non-party to the arbitration agreement as respondents, and the Court merely appoints an Arbitrator without deleting or excluding the non-party, the effect would be that all parties to the petition under Section 11 of the Act (including the non-party to arbitration agreement) will be parties to the arbitration. ....