IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Kcc Buildcon Pvt. Ltd. Through Its Director Shri Shivraj Kundu - Appellant
Versus
Government Of Nct Of Delhi & Ors. - Respondents
Arbitration Petition No. 886 of 2021, Miscellaneous Application No. 11664 of 2021
Decided On : 13-09-2021
Arbitration - Appointment of Substitute Arbitrator - The court appoints a substitute arbitrator to arbitrate on the disputes between the parties following the unfortunate demise of the earlier appointed arbitrator.
Fact of the Case:
The arbitral proceedings before the earlier appointed arbitrator stood concluded and the award was reserved when the arbitrator unfortunately expired. It was necessary to appoint a substitute arbitrator.
Finding of the Court:
The court appointed Hon'ble Mr. Justice Sudershan Kumar Misra as the substitute arbitrator to arbitrate on the disputes between the parties. The substitute arbitrator was requested to furnish the requisite disclosure under Section 12(2) of the Arbitration and Conciliation Act, 1996 within a week of entering on reference.
Issues: Appointment of substitute arbitrator following the demise of the earlier appointed arbitrator.
Ratio Decidendi: In the event of the unfortunate demise of an appointed arbitrator, it is necessary to appoint a substitute arbitrator to continue the arbitral proceedings.
Final Decision: The court appointed Hon'ble Mr. Justice Sudershan Kumar Misra as the substitute arbitrator to arbitrate on the disputes between the parties and directed the substitute arbitrator to furnish the requisite disclosure under Section 12(2) of the Arbitration and Conciliation Act, 1996 within a week of entering on reference.
JUDGMENT
C. Hari Shankar, J. - I.A. 11664/2021
1. Allowed, subject to all just exceptions.
2. The application is disposed of
ARB.P. 886/2021
3. Both sides submit that the arbitral proceedings before Hon’ble Mr. Justice Anil Kumar (retired), the arbitrator earlier appointed to arbitrate on the disputes between the parties, stood concluded and the award was reserved when Hon’ble Mr. Justice Anil Kumar (retired) unfortunately expired.
4. As such, it is necessary that a substitute arbitrator is appointed.
5. In view thereof, this Court appoints Hon'ble Mr Justice Sudershan Kumar Misra (Cell No.: 9810039724), a learned retired Judge of this Court, as the arbitrator to arbitrate on the disputes between the parties. It would be for the arbitrator to decide the stage, from which he would prefer to continue the proceedings.
6. The fees payable to Hon’ble Mr Justice Anil Kumar would continue to apply to Hon’ble Mr Justice Sudershan Kumar Misra.
7. The substitute Arbitrator is requested to furnish the requisite disclosure under Section 12(2) of the Arbitration and Conciliation Act, 1996 within a week of entering on reference.
8. In my view, it would be appropriate for the substitute Arbitrator to call for the record of the arbitration which was earlier being conducted by Hon’ble Mr Justice Anil Kumar.
9. This petition stands disposed of in the aforesaid terms.
In the event of the unfortunate demise of an appointed arbitrator, a substitute arbitrator may be appointed to continue the arbitral proceedings.
The court has the authority to appoint a substitute arbitrator if the original arbitrator passes away, allowing for the continuation of arbitration proceedings.
A substitute arbitrator can be appointed after the demise of the initial arbitrator, and the substitute may charge 40% of the fees based on the Fourth Schedule of the Arbitration and Conciliation Act....
A substituted arbitrator can be appointed under the Arbitration and Conciliation Act, 1996, following the demise of the previous arbitrator without objection from the parties involved.
The main legal point established is the court's authority to appoint a substituted Arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 following the demise of the previous A....
The court allows appointment of a substituted Arbitrator without restarting proceedings, ensuring continuity after the original Arbitrator's demise.
Technical dismissals/withdrawals do not bar Section 15 application for substitute sole arbitrator post prior death; mandate terminates under Act only for specified reasons, courts must facilitate res....
Point of law : Arbitration Agreement – Death of Arbitrator – On death of arbitrator another arbitration appointed.
Upon the demise of an appointed Arbitrator, the court may appoint a substitute, affirming that the right of the opposing party to nominate ceases and statutory compliance is essential before arbitrat....
Neutrality of the arbitrator is essential; a substitute arbitrator can be appointed by mutual consent to maintain fairness in arbitration proceedings.
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