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2026 Supreme(Del) 6

IN THE HIGH COURT OF DELHI AT NEW DELHI
HARISH VAIDYANATHAN SHANKAR, J.
M/S Ramacivil India Construction Pvt Ltd Through Its Authorized Representative Director Sh R N Gupta – Petitioner
Versus
Central Public Works Department Through Its Addl Director General – Respondent
ARB.P. 1787 of 2025
Decided On : 19-02-2026

Advocates appeared:
For the Petitioner: Mr. Anurag Ahluwalia, Sr. Adv. with Mr. Avinash Trivedi, Ms. Ritika Trivedi, Mr. Anurag Kaushik, Mr. Rhythem Nagpal, Mr. Jatin Arora, Mr. Rahul Aggarwal, Mr. Rishank Gola & Mr. Aryan Sangwan, Advs.
For the Respondent: Mr. Vikram Jetly, CGSC with Ms. Laavanya Kaushik, Ms. Shreya Jetly & Ms. Khyaati Bansal, Advs. Mr. Sandeep Sharma, Sr. Adv. with Mr. Praveen Kumar Jain, Ms. Rashmi Kumari, Mr. Yash Chauhan, Ms. Anchal Yadav & Mr. Aditya Rathi, Advs. alongwith Cmdr. Kesavan Baskkaran, CAO, IIM Jammu for R-2

Impleadment of non-signatories in arbitration proceedings is impermissible unless a direct contractual relationship exists, underscoring the importance of party autonomy.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 9 and 11 - Impleadment of non-signatories - Court ruled that an entity that is not a party to the arbitration agreement cannot be impleaded merely based on indirect benefits or supervisory roles; contractual relationships must be respected as per privity of contract. (Paras 14, 15, 31)

(B) The principle of party autonomy in arbitration - The court emphasized that every arbitration agreement operates within the confines of the specific contract between the parties, highlighting the necessity for clear contractual boundaries. (Paras 23, 26)

(C) Jurisdiction of the referral court - Clarification that the court’s jurisdiction at the stage of arbitration appointment is limited to examining the existence of an arbitration agreement specifically among the parties to that contract. (Paras 20, 24)

Facts of the case:
The case involved a petitioner challenging the impleadment of IIM Jammu, asserting no contractual relationship exists between them and claiming the arbitrable disputes arise solely from their agreement with CPWD.

Findings of Court:
The court concluded that the impleadment of IIM Jammu is unsustainable due to the lack of privity of contract and that its inclusion would disrupt the consensual nature of arbitration.

Issues: Whether IIM Jammu constitutes a necessary party to the arbitration proceedings despite being a non-signatory to the agreement.

Ratio Decidendi: The judgment reinforced that arbitration is founded on consent and that a party can only be bound by terms of agreements they are a party to, rejecting the premise of broadening access based on indirect involvement.

Result: Chamber appeals allowed; impugned orders set aside.

Table of Content
1. chamber appeals filed under c.p.c. (Para 1 , 2 , 3)
2. issue of privity of contract highlighted. (Para 4 , 5)
3. arguments presented for and against iim jammu's impleadment. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. court's analysis on parties' involvement in arbitration. (Para 12 , 13 , 14 , 15 , 16)
5. discussion on the nature of arbitration agreements. (Para 17 , 18 , 19 , 20)
6. emphasis on the significance of contract privity. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27)
7. judgment outlines the flaws in the joint registrar's order. (Para 28 , 29 , 30 , 31 , 32 , 33)
8. concluding orders and further proceedings. (Para 35 , 36 , 37)

JUDGEMENT (ORAL)

HARISH VAIDYANATHAN SHANKAR, J.

O.A. 42/2026 (Seeking setting aside of the order dt. 23.01.2026 passed by the Ld. Joint Registrar (Judicial)) in ARB.P. 1787/2025

O.A. 41/2026 (Seeking setting aside of the order dt. 23.01.2026 passed by the Ld. Joint Registrar (Judicial)) in O.M.P.(I) (COMM.) 447/2025

O.A. 40/2026 (Seeking setting aside of the order dt. 23.01.2026 passed by the Ld. Joint Registrar (Judicial)) in O.M.P.(I) (COMM.) 484/2025

1. The present Chamber Appeals, being O.A. 42/2026, O.A. 41/2026 and O.A. 40/2026, have been preferred under Rule 5, Chapter II of the Delhi High Court (Original Side) Rules, 2018 read with Section 151 of the Code of Civil Procedure, 1908.

2. The prayers in all the aforesaid Chamber Appeals are similarly worded and, in substance, assail the separate Orders dated 23.01.2025, Impugned Order(s) passed by the learned Joint Registrar (Judicial) of this Court, Joint Registrar, whereby I.A. 30458/2025, I.A. 30390/2025 and I.A. 29997/2025 were allowed, resulting in the impleadment of the Applicant therein, namely Indian Institute of Management, Jammu, IIM Jammu, as a party to the proceedings under Sections 9 and 11 of the Arbitration and Conciliation Act, 1996, Act

3. It is an undisputed position that the underlying reasoning adopted by the learned Joint Registrar in the separate Impugned Orders, while allowing the respective IAs for adjudication, is substantially identical.

4. Since the present batch of matters arises out of Orders of a similar nature and raises common issues for consideration, for the sake of convenience, brevity, and consistency, reference shall hereinafter be made to the facts and particulars in O.A. 42/2026 in ARB.P. 1787/2025, unless the context otherwise requires.

5. The challenge before this Court is founded on the premise that no privity of contract exists between IIM Jammu and the Petitioner herein.

6. Learned counsel appearing on behalf of the Petitioner submits that although IIM Jammu may be the principal entity, it is the Central Public Works Department, CPWD that issued the tender in question, pursuant to which the tender agreement came to be executed exclusively between the Petitioner and CPWD. It is, therefore, urged that no contractual privity exists between the Petitioner and IIM Jammu so as to warrant its impleadment in the present proceedings.

7. Per contra, learned counsel appearing on behalf of IIM Jammu, which stands impleaded by virtue of the Impugned Order, submits that IIM Jammu constitutes a necessary and proper party to the present Petition.

8. It is submitted that IIM Jammu is the principal entity in relation to the project and that all payments towards the works executed by the Petitioner emanate from IIM Jammu.

9. Learned Counsel for the IIM Jammu further submits that IIM Jammu remains the ultimate beneficiary of the works executed and plays a substantive role in the decision-making process governing the execution of the project.

10. In support of the aforesaid contentions, attention of this Court is drawn to the minutes of various meetings, which reflect that the said meetings were chaired by the Director of IIM Jammu, thereby seeking to demonstrate that a predominant role was played by IIM Jammu in the overall execution of the project justifying its impleadment in the present proceedings.

11. Reliance is also placed by

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