Arbitrator’s Continuation Impermissible After Mandate Ends – Rules Supreme Court

Judgment dated 10.12.2025 of the Supreme Court of India in SLP (Civil) No.13759 of 2025 of Mohan Lal Fatehpuria  Vs.  M/s. Bharat Textiles and others with connected matter

The appellants and respondent nos.2 to 4 are the partners of the respondent no.1 partnership firm.

By the order dated 13.3.2020, the Sole Arbitrator was appointed.  By various orders, the Arbitrators asked the parties to deposit various amounts of administrative expenses.  The respondent nos.2 and 3 had questioned the same.  However, their sections 14 and 15 application was dismissed on 28.1.2022 of the High Court.

Thereafter, the Sole Arbitrator issued directions on various dates requiring the parties to deposit administrative expenses. 

This was challenged in section 29A(6) petitions for substitution of the sole Arbitrator and extension of tenure.  

The mandate of the Sole Arbitrator had expired on 28.2.2023.  When the mandate of arbitrator has expired, the continuation is impermissible.  Section 29A(6) of the Arbitration Act  empowers and obligates the Court to substitute the Arbitrator.  The substitution of a sole arbitrator is warranted when his mandate ceases to exist, to effectuate the object of the Act, which mandates expeditious resolution of the dispute.