ASF Buildtech Private Limited vs Shapoorji Pallonji And Company Private Limited 2025 INSC 616 - Arbitration Act - Impleading Power Of Arbitral Tribunal

Arbitration and Conciliation Act 1996 - Even in the absence of an express provisions in the Act, 1996 empowering the arbitral tribunal to implead or join a party who is otherwise bound by the arbitration agreement, the arbitral tribunal does possess such power by virtue of the doctrine of implied powers, as long as the same is in tandem with the scheme of Act, 1996 i.e., as long as the parties had either expressly or impliedly consented to the arbitration agreement. (Para 127)

Arbitration and Conciliation Act 1996 - Section 21- Mere non-service of a notice of invocation on a party would not nullify the arbitral tribunal’s jurisdiction over such party, and that such party can be impleaded and arrayed in the arbitration proceedings if any claim or counter- claim is made against such party by the claimant in statement of claims or counter-claims, or by even amending the memo of parties of the putative statement of claims counter-claims filed by it, provided that such party is found to be bound by the arbitration agreement either by virtue of it being a signatory, or where such party is a non-signatory. (Para 160)

Arbitration and Conciliation Act 1996 - Applicability of the doctrine of ‘implied power’ - The doctrine may be read into the Act, 1996 for the purpose of effectuating and advancing its object and to avoid hardship - Referred to Gayatri Balasamy vs ISG Novasoft Technologies Limited 2025 INSC 605 - Arbitration Act - Courts' Power To Modify Awards - the recourse to doctrine of implied powers would be permissible, if without it, it is impossible to effectuate a final power, and such exercise of implied power would effectuate and advance the object of the legislation. (Para 120-123)

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