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Third Parties To Arbitration Proceeding Entitled To Appeal If They Are Affected By Arbitrator’s Decision

In Prabhat Steel Traders Pvt. Ltd. vs Excel Metal Processors Pvt. Ltd., the Bombay High Court has held that a third party to an arbitration proceeding has the right to maintain an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, if they are affected by an order passed by an arbitrator under Section 17 of the said Act.

Justice RD Dhanuka heard a batch of 13 petitions filed under section 37 of the Arbitration & Conciliation Act, wherein the petitioners prayed for leave to appeal against the order passed by a sole arbitrator dated December 27, 2016, and an order by the high court dated November 17, 2017, in an arbitration proceeding between Excel Metal Processors Pvt Ltd (Respondent No.1) and Shakti International Pvt Ltd (Respondent No. 2).

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