Delhi High Court

A stranger to an arbitration agreement cannot seek impleadment in Section 9 proceedings to assert independent contractual rights.

Jiostar India Pvt. Ltd. vs Ms Absolute Legends Sports Private Limited & Anr.

Delhi High CourtJUDGMENT: April 22, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection regarding media and commercial rights for the "Legends League Cricket Masters T20"

Source reference: p. 3

On 18.03.2026, the Court granted an ad-interim injunction restraining Respondent No. 1 from creating third-party rights or transferring said media rights

Source reference: para. 4

Subsequently, an applicant, Avro Commercial Company Pvt. Ltd., filed I.A. No. 11046/2026 seeking impleadment

Source reference: para. 1

The Applicant claimed to be a secured creditor of Respondent No. 1 by virtue of a separate Loan and Hypothecation Agreement dated 20.04.2024, asserting that the Court’s stay order materially prejudiced its security interest in the assets and receivables of Respondent No. 1

Source reference: paras. 5-7
02

Issues

1. Whether a third party, who is not a signatory to the arbitration agreement, can be impleaded in proceedings instituted under Section 9 of the Arbitration and Conciliation Act, 1996

Source reference: para. 12/18

2. Whether the presence of a common party and an incidental effect on commercial interests of a stranger are sufficient grounds for impleadment in an interim arbitral relief petition

Source reference: paras. 22/33
03

Law Applied

The Court applied Section 9 of the Arbitration and Conciliation Act, 1996, which governs interim measures by the court, read with the definition of "party" under Section 2(h), which strictly limits the term to a signatory of an arbitration agreement.

Source reference: para. 16, 17

The Court relied on National Highways Authority of India v. China Coal Construction Group Corpn., establishing that a stranger to the contract has no locus standi in Section 9 proceedings.

Source reference: para. 44

It further applied Vijay Arvind Jariwala v. Umang Jatin Gandhi, which holds that Section 9 measures operate only between parties to the arbitration.

Source reference: para. 46

Distinguished Mohammad Ishaq Bhat v. Tariq Ahmad Sofi, noting that impleadment of strangers is only permissible in "exceptional circumstances" involving prior judicial orders.

Source reference: para. 42

The Court noted that Order I Rule 8A of the CPC is intended for public interest questions of law, not private commercial interventions.

Source reference: para. 50
04

Reasoning

The Court reasoned that the statutory architecture of the A&C Act is "fundamentally anchored" to disputes between parties to the arbitration agreement.

Source reference: para. 18

It observed that Section 9 is an "ancillary, preservative, and protective" remedy intended to secure the subject matter of arbitration, not a forum to adjudicate substantive rival claims of third parties.

Source reference: para. 19-20

The Court found that the Applicant’s claims arose from a separate Loan Agreement which contained its own independent arbitration clause; thus, the Applicant should invoke its own contractual remedies rather than intervening in a separate lis.

Source reference: para. 29, 30

Allowing such impleadment would "open the floodgates" to collateral interventions, transforming summary proceedings into complex adjudications of title and priority, thereby defeating the legislative intent of "procedural expedition" and "minimal judicial interference".

Source reference: paras. 21, 31, 48
05

Holding

The Court held that a third party cannot be permitted to "enter the house of arbitration through its window when the doors stand closed both by statute as well as by consensual arrangement" and that the Applicant disclosed no legal basis for intervention as it was not a party to the underlying arbitration agreement.

The Court dismissed the impleadment application (I.A. No. 11046/2026) and connected applications, and issued separate directions to Respondent No. 1 to file disclosure affidavits regarding commercial transactions and receivables as previously undertaken.

Source reference: para. 52, 56-57
Delhi High Court

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Jiostar India Pvt. Ltd.vsMs Absolute Legends Sports Private Limited & Anr.

Delhi High Court · April 22, 2026

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