Arbitration clause survives death of named arbitrators, with substitute appointment permitted under the Act

An arbitration clause naming specific individuals as arbitrators was held to survive their death because the parties' intention, read from the clause and surrounding circumstances, did not tie the agreement to the named arbitrators' lifetime. The phrase "at any time" was construed as referring to when disputes arise, not as limiting the clause to those individuals personally. Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 permit termination of an arbitrator's mandate and appointment of a substitute under the original procedure, so vacancy caused by death or non-availability can be filled unless replacement is expressly barred. The court therefore upheld appointment of a substitute sole arbitrator.

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Issues: Whether an arbitration clause naming specific individuals as arbitrators survives on the death of those named arbitrators, and whether a substitute arbitrator can be appointed under the Arbitration and Conciliation Act, 1996.

Analysis: Clause 21 was an arbitration agreement within Section 7 of the Arbitration and Conciliation Act, 1996. The decisive question was the intention of the parties, gathered from the language of the clause and the surrounding circumstances. The expression "at any time" was read as relating to the time when disputes arise, not as tying the clause to the lifetime of the named arbitrators. Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 recognise termination of an arbitrator's mandate and provide for appointment of a substitute arbitrator according to the original appointment procedure. Unless the agreement clearly prohibits replacement or excludes court intervention, the vacancy caused by death or non-availability of the named arbitrators can be filled so that the policy of promoting arbitration is preserved.

Conclusion: The arbitration clause did survive the death of the named arbitrators, and the court could appoint a substitute arbitrator under the Act. The High Court's appointment of a sole arbitrator was upheld.

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