Section 15
Termination of mandate and substitution of arbitrator.
This section outlines the circumstances under which the mandate of Arbitrator terminates and how a substitute Arbitrator is appointed on his behalf to conduct the Arbitration Proceedings.
In addition to the conditions referred to in the Section 13 & 14, the mandate of the Arbitrator shall terminate:
- When he withdraws from his office for any reason, their mandate is terminated.
- and the mandate is terminated if the parties to the Arbitration agree to it.
When an original Arbitrator’s mandate terminates, a substitute arbitrator is appointed using the same rules that were applied to the appointment of the original arbitrator.
Unless the parties agree otherwise, if an arbitrator is replaced, any hearings that were previously conducted may be repeated at the discretion of the arbitral tribunal. This ensures that the new arbitrator is fully informed of the case and that all evidence and arguments are properly considered.
Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal made prior to the replacement of an arbitrator is not invalid solely because there has been a change in the composition of the arbitral tribunal. This provision aims to maintain the continuity and efficiency of the arbitration process, preventing any disruption due to the change in arbitrator.
The Hon’ble Supreme Court in the case of Yashwith Constructions (P) Ltd. Vs. Simplex Concrete Piles India Ltd. and Anr held that when an arbitrator withdraws, a substitute arbitrator should be appointed according to the rules applicable to the original appointment, as stipulated in Section 15(2). The Court emphasized that the term “rules” refers to the provisions in the arbitration agreement or any institutional rules under which the disputes were referred to arbitration.
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