Non-signatory cannot be impleaded in arbitration absent conduct showing consent via participation in contract's negotiation, performance or termination; substantial financial interest alone insufficient.

JUDGMENT :

Ajay Mohan Goel, J.

By way of this petition, the petitioner has challenged order dated 18.04.2025, passed by learned Arbitrator, in terms whereof, an application filed by it for its impleadment as respondent in the arbitral proceedings, presently going on between M/s Supreme Infrastructure India Limited and Central Public Works Department, stands dismissed.

2. Brief facts necessary for the adjudication of the present petition are that a Memorandum of Understanding has been entered into between the petitioner and respondent/CPWD on 25.08.2011 (Annexure P-1), in terms whereof, respondent No.1, i.e. Central Public Works Department (hereinafter to be referred as “CPWD”) has agreed to undertake the execution of construction work of academic and residential complex along with necessary infrastructure for the petitioner, that is, IIT Mandi at Kamand, in Himachal Pradesh as a deposit work. The terms and conditions of the Memorandum of Understanding, inter alia, provide that CPWD shall ensure quality construction, keeping in view the concern of the petitioner regarding global standard of the building and design specified by the Consultant and CPWD has also agreed to put up an exclusive zone headed by a Chief Engineer, in due course of time, to man and monitor the work of IIT Mandi. The responsibilities of CPWD have been spelled out in Clause-6 of the Memorandum of Understanding, which read as under:-

“6. Responsibilities of CPWD-
6.1 The prequalification and tendering will be carried out by CPWD in consultation with IIT Mandi from the experienced Agencies/ Empanelled Agencies/Contractors depending on value of tender and work experience as prescribed in the tender and as per the norms described in the updated CPWD Works Manual 2010.
6.2 The tenders shall be scrutinized and accepted by the CPWD authorities in accordance with the relevant provisions of CPWD works Manual 2010. Prior concurrence of IIT Mandi would be obtained before acceptance of the tender if the tendered amount is more than the corresponding provisions in the sanctioned preliminary estimate.
6.3 Preparation of tender documents invitation and opening of tenders and award of work etc. based on the details given by the consultant(s) appointed by IIT Mandi in accordance with CPWD Manual 2010 as amended from time to time.
6.4 Execution of Work and Project Management including day to day supervision of work.
6.5 Completing the project as per the broad specifications given by the consultant, duly approved by IIT Mandi.
6.6 Intimating IIT Mandi about any excess over the projected cost or possibility of time over run as soon as it comes to its knowledge.
6.7 IIT Mandi or their representative can inspect the work from time to time to assess the progress and quality in the presence of CPWD Engineers with prior intimation. The day-to-day problems, including the granting of any extension of time will be dealt with by CPWD. Monthly physical and financial progress reports should be forwarded to IIT Mandi in order to enable them to monitor the progress of the work. Further, a joint committee with members and Chairman nominated by Director of IIT Mandi consisting of representatives of IIT Mandi and CPWD shall monitor the progress of work at frequent intervals, preferably once a week, by holding regular site/co-ordination meetings and will take decisions accordingly.
6.8 CPWD shall ensure necessary Quality Assurance and Quality Control in the execution of this project strictly in accordance with procedures described in CPWD Man