An arbitrator’s recusal terminates the mandate and warrants appointment of a substitute arbitrator.

The parties entered into a Definitive Supply Agreement dated 30.03.2023 containing an arbitration clause.

In ARB.P. 1755/2024, the High Court appointed Hon’ble Mr. Justice Ali Mohd Magrey, Former Chief Justice of the High Court of Jammu & Kashmir and Ladakh, as the Sole Arbitrator under the aegis of the Delhi International Arbitration Centre (“DIAC”).

The arbitral proceedings had progressed to the recording and cross-examination of the Petitioner’s witness, CW-1.

The Petitioner claimed approximately ₹3 crores towards outstanding dues, while the Respondent disputed any liability.

The parties made competing allegations concerning delay, adjournments, dilatory tactics, bias, and the conduct of the arbitral proceedings.

The learned Sole Arbitrator subsequently recused himself by communication dated 02.04.2026.

The Petitioner therefore sought termination of his mandate and appointment of a substitute arbitrator under Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 (“the Act”).

The Respondent also filed an application under Section 151 read with Order VI Rule 16 CPC seeking expunging of scandalous and prejudicial remarks made against it and its counsel.

Whether the mandate of the learned Sole Arbitrator stood terminated upon his recusal, requiring appointment of a substitute arbitrator under Sections 14 and 15 of the Act.

Whether a substitute Sole Arbitrator should be appointed to continue the arbitral proceedings from the stage at which the earlier arbitrator recused himself.

Whether the remarks made by the learned Sole Arbitrator against the Respondent and its counsel were liable to be expunged under Section 151 read with Order VI Rule 16 CPC.

The Court applied Sections 14 and 15 of the Arbitration and Conciliation Act, 1996, which govern termination of an arbitrator’s mandate and appointment of a substitute arbitrator.

The Court also referred to Section 12(2) of the Act concerning the arbitrator’s requisite disclosures and directed compliance therewith.

The arbitration was directed to continue under the rules and aegis of DIAC, with fees payable under the DIAC Schedule of Fees.

The Court further applied Section 151 CPC read with Order VI Rule 16 CPC to expunge scandalous, unsubstantiated, and prejudicial pleadings or observations.

The Court preserved the parties’ right to raise objections concerning arbitrability and jurisdiction before the substitute tribunal.

The Court found that the learned Sole Arbitrator’s communication dated 02.04.2026 constituted a recusal from the arbitral proceedings.

Consequently, the Court held that his mandate stood terminated and that appointment of a substitute arbitrator was necessary.

Since both parties agreed that a substitute arbitrator was required, the Court appointed Mr. Justice Dilip Gupta, Former Senior Judge of the Allahabad High Court, as the substitute Sole Arbitrator.

To preserve procedural continuity, the substitute arbitrator was directed to proceed from the stage of cross-examination of CW-1, subject to any appropriate procedural directions.

The Court expressly declined to adjudicate the underlying monetary dispute or the parties’ competing allegations, leaving all substantive and jurisdictional issues open for determination by the arbitral tribunal.

Separately, finding the Respondent’s application justified, the Court expunged the impugned observations from the letter dated 02.04.2026.

It allowed the petition under Sections 14 and 15 of the Act to the extent necessary and appointed Mr. Justice Dilip Gupta as the substitute Sole Arbitrator.

The substitute arbitrator was directed to enter upon the reference within two weeks, furnish the requisite disclosure under Section 12(2), and conduct the arbitration under DIAC’s rules and aegis.

The proceedings were to continue from the stage of cross-examination of CW-1, with all substantive, arbitrability, and jurisdictional issues left open.

The petition and pending applications were accordingly disposed of.