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2025 Supreme(SC) 2025

SANJAY KUMAR, ALOK ARADHE
Mohan Lal Fatehpuria – Appellant
Versus
Bharat Textiles – Respondent


Advocates appeared:
For the Petitioner(s): Mr. Pradeep Aggarwal, Adv. Mr. Lal Pratap Singh, Adv. Mr. Umesh Pratap Singh, Adv. Mr. Arjun Aggarwal, AOR Mr. Sahil Gupta, Adv. Mr. Vishal Singh, Adv. Mr. Aman Kumar, Adv.
For the Respondent(s): Mr. S.C. Singhal, Adv. Mr. Padam Kant Saxena, Adv. Mr. Parth Mahajan, Adv. Mr. Saideep Kaushik, Adv. Ms. Megha Gaur, Adv. Mr. Vibhav Mishra, Adv. Mr. Vihav Mishra, Adv. Mr. Parmanand Gaur, AOR

Table of Content
1. arbitration process and fee demands. (Para 3 , 4 , 5 , 6)
2. parties' contrasting positions on arbitrator's conduct. (Para 7 , 8)
3. statutory provisions ensuring timely arbitration. (Para 9 , 10)
4. termination of arbitrator's mandate and substitution authority. (Para 11 , 12 , 13)
5. conclusion quashing prior order and appointing a new arbitrator. (Para 14 , 15)

JUDGMENT :

1. Leave granted.

FACTS

4. The sole arbitrator entered the reference on 20.05.2020. He thereafter issued various directions on 03.06.2020, 21.10.2020, 09.01.2021 and on 15.06.2021 and directed the parties to deposit various amounts towards administrative expenses. The respondent nos.2 and 3 questioned the action of the sole arbitrator in demanding administrative expenses, in their applications filed under Sections 14 and 15 of the Act, seeking termination of the mandate of the sole arbitrator. The said applications were dismissed by a common order dated 28.01.2022, passed by the High Court, inter alia on the ground that all the expenses are required to be paid on actuals. It was further held, that, it would be open for respondent nos. 2 and 3 to approach the Arbitral Tribunal, to account for adminis

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