ASLAM ISMAIL KHAN DESHMUKH VERSUS ASAP FLUIDS PVT. LTD. & ANR., ARBITRATION, 2024 (SC) 868

FACTS: The petitioner has filed the present two petitions in terms of Section 11(6) read with Section 11(12)(a) of the Arbitration & Conciliation Act, 1996 (for short “the Act, 1996”), seeking appointment of an arbitrator for the adjudication of disputes and claims in terms of Clause 13.10 of the Shareholders Agreement dated 25.07.2011 entered into between the petitioner and the respondents.
Issue: Whether Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration?
Observation: The Supreme Court held that in the interest of justice, the Arbitral Tribunal may impose costs on the Party who abused the process of law constraining another party to participate in the Arbitral Proceedings by taking advantage of minimal judicial interference at the referral stage. The Court stated that while courts are required to refer issues such as claims being time-barred or the inclusion of non-signatories to arbitration, the Arbitral Tribunal has the authority to

