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CS Professional · Arbitration, Mediation and Conciliation · Challenge to Award and Appeals

Arbitrator Ms. Iyer withdrew from office after a challenge by Bhatia Steel alleging doubts about her independence. Bhatia Steel then argued that her withdrawal proves the doubts were justified. Which statement is correct under the Act?

Withdrawal does not imply that the ground alleged was valid. Section 14(3) expressly says that an arbitrator's withdrawal, or a party's agreement to termination, is not an acceptance of the validity of any ground under Section 14 or Section 12(3).

  1. AWithdrawal implies acceptance of the validity of the ground alleged
  2. BWithdrawal implies acceptance only if the other party also agrees
  3. CWithdrawal does not imply acceptance of the validity of any such groundCorrect
  4. DWithdrawal makes the earlier proceedings invalid

Explanation

Section 14(3) states that where an arbitrator withdraws or a party agrees to termination under Section 14 or Section 13(3), it does not imply acceptance of the validity of any ground referred to in Section 14 or Section 12(3). So the argument fails.

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