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

Mehta Infra Ltd and Sundaram Builders referred a dispute to a sole arbitrator, Mr. Rao. After hearings began, Mr. Rao suffered a serious illness and became physically unable to perform his functions. He then informed both parties in writing that he withdrew from office. What is the effect under the Arbitration and Conciliation Act, 1996?

His mandate terminates and a substitute arbitrator is appointed. Under Section 14(1), inability to perform functions combined with withdrawal from office ends the mandate and requires substitution, so the arbitration itself continues rather than ending or restarting.

  1. AHis mandate terminates and he is substituted by another arbitratorCorrect
  2. BHis mandate continues until the final award is made
  3. CThe arbitral proceedings terminate automatically with no substitution
  4. DThe parties must start fresh arbitration with a new agreement

Explanation

Section 14(1) provides that the mandate terminates and the arbitrator is substituted if he becomes de jure or de facto unable to perform his functions and he withdraws from office or the parties agree to termination. Here both limbs are met. The proceedings do not end; a substitute is appointed.

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