Bombay High CourtArbitration and MediationCivil Procedure and Evidence

Prolonged, unexplained inactivity in arbitral proceedings constitutes implied abandonment, resulting in termination under Section 32(2)(c).

Supama Realtors Llp And Orsv.Mulchand Kaluchand Ranka

Prolonged, unexplained inactivity in arbitral proceedings constitutes implied abandonment, resulting in termination under Section 32(2)(c).. Supama Realtors Llp And Ors vs Mulchand Kaluchand Ranka. Bombay High Court. LawLens
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In brief

The question

1. Whether the mandate of the arbitral proceedings stood automatically terminated due to the nine-month "endeavour" period stipulated in the 2014 recruitment order.

The court held

The Court held that the arbitral proceedings were abandoned by the Applicants and therefore stood terminated under Section 32(2)(c) of the Arbitration Act.

It also directed

The Court ruled it had no power to substitute the arbitrator under Section 11 or Section 14 because the proceedings were no longer alive; the application was dismissed.

01Facts

The High Court referred disputes concerning a partnership firm to a sole arbitrator via orders dated 17 September 2014 and 17 March 2015.

¶ 2-3

The 2014 order directed the arbitrator to "endeavour" to pass an award within nine months.

¶ 16

Arbitration commenced, pleadings were filed, and evidence was submitted, but the last meeting occurred on 25 July 2017.

¶ 4

For nearly nine years thereafter, no meetings were held; the Applicants claimed settlement talks were ongoing, though no evidence of such meetings was provided.

¶ 4, 31

In January 2026, a legal heir of a deceased respondent (not a party to the proceedings) emailed the arbitrator to resume proceedings.

¶ 6, 33

Receiving no response and learning of the arbitrator's advanced age, the Applicants filed this application under Section 11 r/w Section 14 to terminate the current mandate and appoint a substitute arbitrator.

¶ 7, 9

02Issues

i.1. Whether the mandate of the arbitral proceedings stood automatically terminated due to the nine-month "endeavour" period stipulated in the 2014 recruitment order.

¶ 15

ii.2. Whether the arbitral proceedings were abandoned by the parties through their conduct, leading to termination under Section 32(2)(c) of the Act.

¶ 15

iii.3. Whether the Court can appoint a substitute arbitrator under Sections 11 and 14 if the proceedings themselves have terminated.

¶ 15

03Law Applied

The Court applied Section 14 and 15 of the Arbitration and Conciliation Act, 1996 regarding the termination of an arbitrator's mandate and substitution.

¶ 23

The Court maintained the distinction between Section 14/15 and Section 32, which governs the termination of the arbitral proceedings themselves.

¶ 24

Board of Control for Cricket in India v. Kochi Cricket Private Limited: Section 29A (time limits) applies prospectively and does not govern arbitrations commenced before 23 October 2015.

¶ 17

Tata Sons Pvt. Ltd. v. Siva Industries and Holdings Ltd.: The word "endeavour" in time-limit clauses is directory, not mandatory.

¶ 19

Dani Wooltex Corporation v. Sheil Properties Pvt. Ltd.: Abandonment is a ground for termination under Section 32(2)(c) but must be clinching and lead to an inevitable inference.

¶ 29

Provisions in the judgment · 12 · Linked ones open on LawLens

Arbitration and Conciliation Act, 1996 12 provisionsSection 9Section 11Section 12Section 13Section 14Section 15Section 21Section 23Section 25Section 32Section 33Section 34

04Reasoning

The Court first clarified that the nine-month "endeavour" period in the original order was directory and did not automatically extinguish the mandate, especially since parties continued meetings past that date.

¶ 19, 21

The Court observed a nine-year hiatus (2017–2026) with zero progress and scrutinized the Applicants' claim of "settlement talks," finding it "incomprehensible" that such talks would last nine years without a single communication to the arbitrator or documented meeting.

¶ 22, 31

The Court reasoned that while Sections 14 and 15 allow substitution when a vacancy occurs in a subsisting reference, they cannot be invoked if the proceedings are terminated under Section 32.

¶ 25-26

The "clinching" conduct of the parties over nearly a decade led to the sole conclusion of abandonment, distinguishing this case from others where specific reasons for delays existed.

¶ 32, 34

05Holding

The Court held that the arbitral proceedings were abandoned by the Applicants and therefore stood terminated under Section 32(2)(c) of the Arbitration Act.

¶ 34

The Court ruled it had no power to substitute the arbitrator under Section 11 or Section 14 because the proceedings were no longer alive; the application was dismissed.

¶ 35
Bombay High Court

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Supama Realtors Llp And OrsvsMulchand Kaluchand Ranka

Bombay High Court · May 08, 2026

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