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India: Delhi High Court on substitute arbitrators and continuation of proceedings, Sections 14, 15 and 29A, and unstamped arbitration clauses (Extramarks v Saraswati Shishu Mandir)

Published on: 14 June 2024

Published by a LexisNexis Arbitration expert

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Extramarks Education India Pvt Ltd v Saraswati Shishu Mandi.r O.M.P. (T) (COMM.) 13/2024 and O.M.P. (T) (COMM.) 14/2024a What are the practical implications of this case?

This ruling makes clear that bringing an arbitrator’s mandate to an end does not terminate the arbitration. It simply leads to a substitute being appointed, who may carry on the reference from the point the former arbitrator stopped. Importantly, the decision reiterates that, under Sections 14 and 15 of the 1996 Act, an arbitrator’s mandate can be ended if they become non-responsive or fail to act. As the termination of the arbitrator’s mandate does not extinguish the arbitral proceedings, the replacement may proceed without retracing steps already completed by the predecessor. However, this mechanism for substitution does not operate where the mandate ceases solely because the award-making window under Section 29A of the 1996 Act has expired. In that event, the arbitral proceedings conclude unless the parties extend the period. The case further confirms that the mere absence of stamping on the arbitration agreement is not a valid ground to resist the invocation of arbitration...

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