Third parties permitted to challenge the award

Chennai Container Terminal Pvt. Ltd. v. Union of India, 2007 SCC OnLine Mad 253 : (2007) 3 Arb LR 218 : (2007) 3 Mad LJ 1 at page 228

16. To sum up the findings, though Government of India was not a signatory to the arbitration agreement, it was a party non-signatory. Therefore, not only a party to the arbitration agreement but a party non-signatory also can challenge the impugned award passed by the learned arbitrator. Further, the scheme of the Code of Civil Procedure applies to the proceedings under Section 34 of the Arbitration and Conciliation Act, 1996. Therefore, the proposition of law that an aggrieved party can challenge the judgment will have to be applied to the facts and circumstances of this case. The contextual facts and circumstances warrant expansion of the definition found under Section 2(1)(h) of the Arbitration and Conciliation Act, 1996 to include the Government of India who is a party non-signatory for the purpose of challenging the award under Section 34 of the said Act. In view of the above, sustaining the order passed by this court granting leave to Union of India to prefer the original petition challenging the award passed by the learned arbitrators, Application No. 169 of 2007 filed by Chennai Container Terminal Private Limited seeking to recall and set aside the order dated 09.01.2007 stands dismissed.