Arbitration and Conciliation Act, 1996 – s.29A(6) – Substitution of a sole arbitrator – On facts, the sole arbitrator issued directions requiring the parties to deposit the administrative expenses – Appellants sought time, in an arbitral proceeding, to move an application before the High Court u/s.29A(4) – Thereupon, the sole arbitrator adjourned the proceeding sine die – Appellants then filed petitions u/s. 29A(6) seeking substitution of the sole arbitrator and extension of tenure for the substitute arbitrator – High Court declined substitution of a sole arbitrator, however extended his mandate u/s.29A(6) for a further period – Correctness:
Held: Substitution of a sole arbitrator is warranted, when his mandate ceases to exist, to effectuate the object of the Act, which mandates expeditious resolution of the dispute – In view of mandate contained in s.29A(1), the sole Arbitrator was under an obligation to pass an award within a period of one year from 01.03.2022, i.e. on or before 28.02.2023 – However, the sole Arbitrator failed to do so – Parties did not apply for extension of period to pass an award – Sole arbitrator in view of mandate contained in s.29A(4) became functus officio – Mandate of the sole Arbitrator terminated on 28.02.2023 – When mandate of arbitrator has expired, his continuation is impermissible – s.29A(6) empowers and obligates the Court to substitute the Arbitrator – In view thereof, the case warranted the exercise of jurisdiction u/s.29A(6) – High Court erred in granting an extension when the mandate of the sole arbitrator had ceased to exist – Impugned order quashed and set aside – Mandate of sole arbitrator terminated by operation of law – Former Judge of the High Court appointed as the substituted sole arbitrator. [Paras 11, 13, 14]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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