Arbitrator mandate termination on expiry of contractual time limit prevents unilateral extension or revival of the reference.

Where an arbitration agreement fixed a mandatory time limit for completion of the reference, the arbitrator's mandate terminated automatically on expiry of that period absent party consent to extend it. Section 14 of the Arbitration and Conciliation Act, 1996 treated failure or inability to act without undue delay as a ground for termination of mandate, and Section 15 permitted substitution only after such termination. The Court rejected waiver and acquiescence, holding that mere participation in later proceedings could not override the contractual time limit or revive a lapsed mandate. The subsequent appointment could not validly continue the reference, and the arbitration was held to have come to an end.

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Issues: Whether the mandate of the arbitrator stood terminated on expiry of the contractual time limit and whether a fresh appointment by the respondent could validly continue the reference.

Analysis: The arbitration clause fixed a definite time for completion of the proceedings and also provided that any substituted arbitrator would continue from the stage reached by the predecessor. The Court held that, once the agreed period expired, there was no scope for unilateral extension of the mandate. Section 14 of the Arbitration and Conciliation Act, 1996 treats failure or inability to act without undue delay as a ground for termination of mandate, and Section 15 contemplates substitution only after such termination. The Court rejected the plea of waiver and acquiescence, holding that mere participation in later proceedings could not override the clear contractual time limit and the legal effect of expiry of mandate.

Conclusion: The mandate of the arbitrator had terminated on expiry of the agreed period, and the subsequent appointment could not revive the arbitration; the petition was therefore allowed.

Ratio Decidendi: Where the arbitration agreement fixes a mandatory time limit for completion of the reference and the parties have not consented to extension, the arbitrator's mandate terminates automatically on expiry of that period, and a substitute arbitrator can be appointed only in accordance with the statutory scheme after such termination.

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