A substitute arbitrator must be appointed according to statutory provisions when the mandate of the previous arbitrator is terminated by mutual consent.

JUDGMENT

Chandra Dhari Singh, J. (Oral)

I.A. No. 20561/2022 (for Exemption)

Subject to the plaintiff filing the clear, original and legible/typed copies of any dim documents on which the plaintiff may seek to place reliance, within four weeks from today, exemption is granted for the present.

The application is disposed of.

O.M.P.(T) 11/2022

1. The instant petition has been filed under under Section 15(2) read with Section 11(6) of the Arbitration & Conciliation Act, 1996 seeking the appointment of a substitute Arbitrator.

2. Learned counsel for the petitioner submitted that an Employment Agreement was signed and executed between the Petitioner and the Respondent on 21.10.2019. Disputes arose between the Petitioner and the Respondent with respect to the terms and conditions mentioned in the Employment Agreement. The parties failed to resolve the disputes by amicable negotiations within twenty business days as stipulated under Clause 18(c) of the Employment Agreement, failing which the parties were mandated to submit any dispute arising out of the Employment Agreement before a Sole Arbitrator for its adjudication. Accordingly, the Petitioner issued a notice dated 20.06.2022 to the Respondent invoking the Arbitration clause and nominated Ms. Anindita Mitra as the Sole Arbitrator. The Respondent vide its reply dated 01.07.2022, disputed the Petitioner's claims and refused to consent to the appointment of the Sole Arbitrator and also failed to nominate any other individual as Sole Arbitrator.

3. It is submitted that since the parties failed to mutually appoint an Arbitrator as per the procedure prescribed by the Arbitration clause, the Petitioner had approached this Court to appoint an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

4. The Co-ordinate Bench of this Court vide order dated 7.10.2022 in ARB. P. 870/2022 appointed Mr. Siddhartha Shankar Ray, Advocate as the sole Arbitrator to adjudicate the disputes between the parties.

5. Learned counsel appearing on behalf of the petitioner submitted that a Statement of Claim has already been filed by the petitioner before the learned Arbitrator and the Arbitral Tribunal appointed by the Co-ordinate Bench of this court has not settled the disputes between the parties.

6. It is further submitted on behalf of the petitioner that an email dated 18.11.2022 was sent by the petitioner informing the Arbitral Tribunal that the parties, in accordance with Section 15(1)(b) of the Arbitration & Conciliation Act, 1996, have mutually agreed to terminate the mandate of the Arbitral Tribunal and to seek the appointment of a substitute Arbitrator.

7. Learned counsel for the petitioner further submitted that as per the provisions of Section 15 (2) of the Arbitration and Conciliation Act, 1996, where the mandate of an arbitrator terminates, a substitute arbitrator has to be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced. Since the arbitrator being replaced was appointed by this Court vide its order dated 07.10.2022 in accordance with Section 11(6) of the Arbitration and Conciliation Act, 1996, it is prayed that a substitute arbitrator be appointed.

8. The learned counsel appearing on behalf of the respondent on advance notice stated that there is no objection to the appointment of a substitute arbitrator.

9. Heard both the parties.

10. As agreed on behalf of the parties, it is evident that both the parties have mutually agreed to terminate the mandate of the sole arbitrator and are requesting this Court to appoint a substituted arbitrator. In view of the request made by the parti