JUDGMENT :

SANDEEP V. MARNE, J.

1) This is an application under Section 11 r/w Section 14 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) seeking direction for termination of mandate of the previous arbitrator and for appointment of the substitute arbitrator in the reference stated to be pending between the parties.

2) By order dated 17 September 2014 passed in Arbitration Application No. 113 of 2014, this Court made a reference for adjudication of disputes and differences between the parties for arbitration and appointed Mr. E.P. Bharucha, Senior Advocate of this Court to adjudicate the disputes and differences between the parties in relation to affairs, business and assets of the partnership firm M/s. Shree Ranka Kothari Kanugo Realtors.

3) By further order 17 March 2015 passed in Application No. 332 of 2014 filed by Respondents Nos.4 to 8, this Court referred the disputes and differences between the parties to arbitration by appointing Mr. E.P. Bharucha, Senior Advocate of this Court. Before appointment of the arbitrator, Applicants had filed Arbitration Petition No. 402 of 2014 under Section 9 of the Arbitration Act which was disposed of by orders dated 18 February 2016 and 20 December 2016 appointing Court Receiver in respect of the properties of the Partnership Firm. The Court Receiver was subsequently discharged by order dated 22 October 2019.

4) The arbitration proceedings commenced before the learned sole Arbitrator. The Applicants filed statement of claim and the Respondents filed their respective statement of defence and counterclaims. Affidavits of evidence were also filed by the respective parties. The last meeting of arbitration was held on 25 July 2017. According to the Applicant, settlement talks were thereafter held between the parties and parties met on many occasions to resolve the disputes. According to the Applicants, the arbitration proceedings were at the stage of conducting cross-examination of Applicant's witness. However, parties jointly sought adjournments from time to time before the learned Arbitrator on account of settlement talks.

5) The Applicants contend that the settlements talks could not fructify due to noncooperation from Ranka Group and there were also no progress in the Project.

6) In the above background, Mr. Pradeep D. Kanugo (Respondent No.6) on behalf of Kanugo Group addressed email to the learned sole Arbitrator informing him about (i) demise of his father and need to bring his heirs and representatives on record (ii) of continued non-co-operation of Ranka Group in inducting the heirs into partnership firm, (iii) his desire to resume arbitration proceedings (iv) partnership firm losing in various litigations on account of non-contribution of funds by Respondent No.1 (v) his intention of taking out various applications in the arbitral proceedings through fresh advocate and (vi) request for scheduling a meeting by the learned sole arbitrator for deciding the further conduct of arbitral proceedings.

7) Applicants claim that the learned Arbitrator did not give any response to the email of Respondent No. 7. Since no communication is received to the email dated 2 January 2026 from the learned sole Arbitrator, Applicants made inquiries from his office and received verbal intimation that the learned sole Arbitrator is now of advanced age and is not in a position to actively conduct and conclude the arbitration proceedings. In the above background, Applicants have filed the present Application under the provisions of Section 11 r/w Section 14 of the Arbitration Act for appointment of a substitute arbitrator The prayers in the Application read thus:

a) this Hon'ble Court be pleased to terminate the mandate of Mr. E. P. Bharucha, Senior Advocate, as the Sole Arbitrator in the arbitration proceedings arising out of disputes in relation to the affairs, business and assets of the Partnership firm M/s. Shree Ranka Kothari Kanugo Realtors;

b) this Hon'ble Court be pleased to pass appropriate o