Substitute Arbitrator Appointment: resignation of a nominee did not stop section 11 appointment despite arbitration and writ objections.

Resignation of a nominee arbitrator created a vacancy requiring substitution under the Arbitration and Conciliation Act, 1996, and the Act's scheme favours continuity of the reference and expeditious progress of the proceedings. The court directed appointment of a substitute nominee arbitrator, with a fallback appointment if the respondent did not act within time. Objections based on the existence or validity of the arbitration agreement, and the pendency of writ proceedings, did not bar appointment under section 11 because such issues are ordinarily for the arbitral tribunal under section 16 and the limited writ stay did not the continuation of the arbitration.

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Issues: (i) Whether a substitute arbitrator should be directed to be appointed after the nominee arbitrator resigned. (ii) Whether objections regarding the existence of the arbitration agreement and the pending writ proceedings should prevent appointment under section 11.

Issue (i): Whether a substitute arbitrator should be directed to be appointed after the nominee arbitrator resigned.

Analysis: The arbitral tribunal was already seized of the reference and the nominee arbitrator's resignation created a vacancy requiring replacement. Section 15 of the Arbitration and Conciliation Act, 1996 contemplates substitution of an arbitrator whose mandate terminates on resignation, and the scheme of the Act favours continuity and expeditious progress of arbitral proceedings.

Conclusion: A direction to appoint a substitute nominee arbitrator was warranted, with a fallback appointment to operate if the respondent failed to act within the stipulated time.

Issue (ii): Whether objections regarding the existence of the arbitration agreement and the pending writ proceedings should prevent appointment under section 11.

Analysis: The Act contains a policy of minimal court intervention under section 5, and questions touching the existence or validity of the arbitration agreement are ordinarily to be left to the arbitral tribunal under section 16. The limited stay in the connected writ matter was only against the final award, not the continuation of proceedings, and therefore did not justify stalling the replacement of the resigned arbitrator.

Conclusion: The objections did not bar appointment under section 11, and the court directed replacement of the resigned nominee arbitrator.

Final Conclusion: The petition succeeded to the extent of securing substitution of the resigned nominee arbitrator so that the arbitral proceedings could continue without interruption.

Ratio Decidendi: Under the Arbitration and Conciliation Act, 1996, the court should not obstruct arbitral proceedings on contested questions of arbitrability at the appointment stage, and a resigned arbitrator must be replaced in accordance with the Act to preserve continuity of the reference.

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