Arbitration and Conciliation Act Section 14 — Failure or impossibility to act
CHAPTER III — Composition of arbitral tribunal
Civil
Summary
Sub-section (1) sets out the two conditions under which an arbitrator's mandate ends and a replacement arbitrator is appointed. First, the arbitrator must have become unable to perform their duties, either in law or in fact, or must have failed to act without undue delay for other reasons. Second, the arbitrator must either withdraw from the position, or the parties must agree to end the mandate. Both conditions must be met for the mandate to terminate under this provision.
Sub-section (2) deals with disputes over the grounds mentioned in clause (a) of sub-section (1). If there is a disagreement about whether the arbitrator is unable to act or has failed to act without undue delay, a party can apply to the Court to decide whether the mandate should be terminated, unless the parties have agreed otherwise.
Sub-section (3) clarifies that when an arbitrator withdraws from office or a party agrees to end the mandate under this section or under sub-section (3) of section 13, this does not mean that the grounds mentioned in this section or in sub-section (3) of section 12 are accepted as valid. In other words, the withdrawal or agreement does not amount to an admission that the arbitrator was at fault or that the stated reasons were true.
Official Text
(1) 2[The mandate of an arbitrator shall terminate and he shall be substituted by another arbitrator, if]—
(a) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay; and
(b) he withdraws from his office or the parties agree to the termination of his mandate.
(2) If a controversy remains concerning any of the grounds referred to in clause (a) of sub-section (1), a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the mandate.
(3) If, under this section or sub-section (3) of section 13, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12.