Merely Being Ultimate Beneficiary Not a Ground to be made Party to Arbitration: Delhi High Court

The Delhi High Court said that a person or organisation cannot be forced into arbitration if they did not sign the contract, even if they benefit from the project.

Arbitration is based on agreement between parties, and only those who agreed to it can be included.

The Court clarified that just being the “ultimate beneficiary” of a project is not enough to make someone part of an arbitration case.

In this matter, the Court removed the Indian Institute of Management Jammu from the arbitration proceedings, as it was not a signatory to the contract.

[M/s Ramacivil India Construction Pvt Ltd v. Central Public Works Department & Anr.]