The court emphasized that the requirements of Section 14 of the Arbitration Act must be satisfied for the termination of the Arbitral Tribunal's mandate and that the court does not have the power to expunge any part of the order of the Arbitral Tribunal.

JUDGMENT :

Sanjeev Sachdeva, J.

1. Petitioner has filed this petition under Section 14(2) read with Section 15 of the Arbitration and Conciliation Act 1996 (hereinafter referred to as the Arbitration Act), seeking termination of the mandate of the Arbitral Tribunal and also for expunging the adverse and prejudicial remarks contained in order dated 05.10.2021 of the Arbitral Tribunal.

2. After some arguments, learned counsel appearing for the petitioner seeks to leave to withdraw the petition.

3. However, keeping in view of the averments made in the petition and also the written submissions, this court is not inclined to accede to the request of the petitioner.

4. It would be expedient to refer to the factual matrix which led to the passing of the subject order by the Arbitral Tribunal.

5. Respondent has filed the subject claim before the Arbitral Tribunal on 23.03.2021 of the value of approximately Rs. 248 cores besides interest.

6. In the year another creditor of the petitioners CBRE, South Asia Private Limited had approached the National Company Law Tribunal (NCLT for short) seeking winding up of the Petitioner under the Insolvency and Bankruptcy Code.

7. By order 23.08.2021, NCLT issued a moratorium and appointed an Interim Resolution Professional (IRP for short).

8. Petitioner settled with the said creditor on 28.08.2021. Thereafter, on 02.09.2021, petitioner approached the National Company Law Appellate Tribunal (NCLAT for short) and informed the NCLAT that the disputes had been settled with the creditor CBRE, South Asia Private Limited and sought stay of the further proceedings by the Interim Resolution Professional. By order dated 02.09.2021, NCLAT stayed the proceedings by the IRP.

9. On 27.09.2021, subject Arbitral Tribunal was informed about the moratorium being in place and the Arbitral Tribunal was requested for suspension of the proceedings.

10. Thereafter, on 04.10.2021, NCLAT was once again informed about the settlement and a statement was made before the NCLAT that proceedings initiated by the said creditor CBRE South Asia Private Limited would be withdrawn pursuant to the settlement.

11. By the subject impugned order dated 05.10.2021, the Arbitral Tribunal, noticing the conduct of the petitioner held and directed as under :-

“14. Thus, this Arbitral Tribunal must stay its hands till the order passed by NCLT on 23.08.2021 continues to remain in force. However, the Tribunal cannot resist noting that the respondents have displayed dilatory tactics in the present proceedings, and the Tribunal finds lack of due diligence on the part of the respondents in not filing an application before NCLT, if CSRE South Asia Private Limited has not filed an application before NCLT to withdraw its petition despite having received INR. 1,62,62,338.00,the stated debt due to it from respondent No. 4. The Tribunal sniffs a sinister motive on the part of the respondents in allowing the proceedings instituted by CSRE South Asia Private Limited to remain on the board of NCLT because the order dated 23.08.2021 passed by the NCLT affords a protective umbrella to respondent No. 4 vis-a-vis the present, proceedings, for the reason the order dated 02.09.2021 passed by NCLAT only directs the Interim Resolution Professional not to proceed further in the matter. The order passed by NCLT has not been stayed and hence the moratorium continues.

15. Staying the present proceedings, the Tribunal directs the respondents to file, within 4 days, an application before NCLT, if CSRE South Asia Private Limited does not file an application to withdraw the proceedings initiated by it for insolvency of respondent No.4.”

12. Subject order passed by the Arbitral Tribunal clearly records the conduct of the petitioner and in that light makes certain observations.

13. The factual narration does not end with the subject order. It may be further noticed that though the Arbitral Tribunal by its order dated 05.10.2021 directed the petitioner to approach the NCLT within four days to