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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Sacheerome Advanced Technologies - Appellant
Versus
NEC Technologies India Pvt. Ltd. (NECI) - Respondent
O.M.P. (T) (COMM.) 74 of 2021
Decided On : 09-08-2021




The court allows appointment of a substituted Arbitrator without restarting proceedings, ensuring continuity after the original Arbitrator's demise.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 14(1)(A) and 15 - Appointment of a substituted Arbitrator - Following the demise of the appointed Arbitrator during proceedings, the court directed the continuation of arbitration without starting afresh - The substitution was permitted with the consent of both parties. (Paras 4, 8, 9)

(B) Legal principles - Arbitration proceedings may not be restarted upon the death of an arbitrator if pleadings are in mid-way and both parties acknowledge the need for a substituted Arbitrator. (Para 8)

Facts of the case:
The petitioner sought the appointment of a new Arbitrator due to the unfortunate demise of the originally appointed Arbitrator, ensuring ongoing dispute resolution without fresh proceedings.

Findings of Court:
The petition was allowed, and a new Sole Arbitrator was appointed to continue the arbitration process.

Issues: The primary issue was the appointment of a new Arbitrator following the demise of the previous one during ongoing arbitration proceedings.

Ratio Decidendi: The court emphasized that a procedural continuity in arbitration is essential and allows for a new Arbitrator to be appointed without restarting the entire process, ensuring effective resolution of disputes.

Result: Petition allowed.

Table of Content
1. petitioner seeks appointment of a substituted arbitrator. (Para 4)
2. parties do not dispute the appointment of a new arbitrator. (Para 5 , 7)
3. court allows petition for substituted arbitrator. (Para 6 , 8 , 10 , 11 , 12)
4. ms. radhika biswajit dubey appointed as sole arbitrator. (Para 9)
5. petition disposed of with directions. (Para 14)

JUDGMENT (Oral)

The hearing has been conducted through video conferencing.

I.A. 9852/2021 (exemption)

1. Allowed subject to all just exceptions.

2. The application is disposed of.

I.A. 9853/2021 (exemption)

3. The application is disposed of with direction to file necessary affidavits within four days of this Court resuming normal functioning.

O.M.P. (T) (COMM.) 74/2021

4. The present petition has been preferred by the petitioner under the provisions of Section 14 (1) (A) read with Section 15 of the Arbitration and Conciliation Act, 1996 seeking appointment of substituted Arbitrator, to adjudicate the dispute between the parties.

5. Learned senior counsel appearing on behalf of petitioner submits that parties had entered into an agreement dated 11.06.2019 consisting of an arbitration clause/arbitration agreement. Thereafter, disputes had arisen between the parties and in a petition [Arb. Pet. 702 of 2020] preferred by the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996, Mr. Rajiv Bansal, Senior Advocate, was appointed as Arbitrator. However, during pendency of the pleadings/proceedings, the learned Arbitrator met with his unfortunate demise on 17.05.2021 and so, another Arbitrator has to be appointed in this case. Learned senior counsel for petitioner further submits that arbitration proceedings were in progress and pleadings were in mid-way, therefore, the entire proceedings be not conducted afresh and the proceedings may continue further.

6. Notice issued.

7. Ms. Satya Jha, Advocate, accepts notice on behalf of respondent and submits that the present petition seeking appointment of another Arbitrator is not disputed.

8. Keeping in view that after demise of Mr.Rajiv Bansal, Senior Advocate, appointment of a substituted Arbitrator is not disputed, the present petition is allowed.

9. Accordingly, Ms. Radhika Biswajit Dubey, Advocate (Mobile: 9810982927) is appointed Sole Arbitrator to adjudicate the dispute between the parties.

10. The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

11. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.

12. Needless to say the pleadings/proceedings before the Arbitral Tribunal shall resume where it were left.

13. A copy of this order be transmitted/sent to the learned Arbitrator for information.

14. With aforesaid directions, the present petition is accordingly disposed of.

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