Section 14

Failure or impossibility to act

This section deals with the termination of an Arbitrator’s mandate due to failure or impossibility to act and he will be substituted by another Arbitrator if:

• The arbitrator becomes de jure or de facto unable to perform their functions.
• The arbitrator fails to act without undue delay which addresses the situation where the Arbitrator is not actively participating in the process, leading to delays.
• The arbitrator withdraws from office, or the parties agree to terminate their mandate.

If any dispute persists regarding any of the grounds, a party may, unless the parties have agreed otherwise, seek the Court’s decision on terminating the mandate of an Arbitrator.

An arbitrator’s mandate will also be terminated if they withdraw from their office or if the parties agree to terminate the mandate of the Arbitrator.

The Courts in which the application under Section 14 of the Arbitration & Conciliation Act, 1996 are High Courts or the Supreme Court. This same has been explained in Section 2(1)(e) of the Act, as it was considered that only the higher Courts has the power to oversee the appointments or substitutions of an Arbitrator.

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice. Readers should seek expert legal counsel before taking any action based on the content.