Arbitration clause survives a sole arbitrator's death, with substitution available under the Act's appointment mechanism.

The Arbitration and Conciliation Act, 1996 distinguishes between termination of an arbitrator's mandate and extinction of the underlying arbitration agreement. Sections 14 and 15 address failure, impossibility, death, termination, and substitution of an arbitrator, and do not by themselves nullify the agreement to arbitrate. Where a sole arbitrator dies, the Act contemplates reconstitution of the tribunal and appointment of a substitute under the original appointment mechanism, including the agreement or institutional rules governing appointment. The contrary view that the arbitration clause is wiped out on the named arbitrator's death is rejected; the clause survives and the vacancy may be filled under Section 11.

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Issues: Whether the death of the named sole arbitrator terminated the arbitration agreement, or whether the arbitration clause survived so that a substitute arbitrator could be appointed under the Act.

Analysis: The scheme of the Arbitration and Conciliation Act, 1996 distinguishes between termination of the arbitrator's mandate and extinction of the arbitration agreement itself. Sections 14 and 15 deal with failure, impossibility, termination of mandate, and substitution of an arbitrator; they do not nullify the underlying agreement to arbitrate. Where the mandate of a sole arbitrator comes to an end by death or otherwise, the Act contemplates reconstitution of the tribunal and appointment of a substitute in accordance with the original appointment mechanism. The reasoning also follows the settled view that the word "rules" in Section 15(2) refers to the agreement or institutional mechanism governing appointment, and that the vacancy can be filled when the named arbitrator is unable or unwilling to act. The contrary view that the arbitration clause is wiped out on the named arbitrator's death was rejected.

Conclusion: The arbitration clause survived the death of the named sole arbitrator, and the vacancy could be filled under Section 11 of the Act. The order refusing relief was set aside and the matter was remanded for decision on merits.

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