Fresh arbitral tribunal upheld where exchange bye-laws allowed substitution after the original mandate expired

Exchange bye-laws and the Arbitration and Conciliation Act, 1996 together permitted constitution of a fresh tribunal after the first tribunal's mandate expired. Section 14 did not bar the exchange from appointing a substitute tribunal, and Section 15, read with the applicable bye-laws, supported replacement through the prescribed mechanism. The challenge under Sections 14 and 15 therefore failed because the earlier mandate had terminated and the arbitration process could continue under the governing rules. The party could pursue objections through the Sections 12 and 13 challenge procedure, but could not bypass arbitration altogether.

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Issues: Whether, after the mandate of the first arbitral tribunal expired under the exchange bye-laws, the exchange could constitute a fresh tribunal and whether the petition under Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 could succeed on the footing that no further arbitration was permissible.

Analysis: The petitioner's case was founded on the expiry of the contractual timetable for completion of arbitration and the assertion that the earlier tribunal had become unable to act. The governing arbitration framework, however, comprised both the Arbitration and Conciliation Act, 1996 and the exchange bye-laws binding on the parties. Once the initial tribunal's mandate stood terminated, the bye-laws expressly permitted the appointment of a substitute or fresh tribunal through the prescribed mechanism. The Court held that Section 14 did not apply to prevent the exchange from constituting another tribunal, and Section 15, read with the applicable bye-laws, supported substitution in accordance with the rules governing the original appointment. The petitioner could also have invoked the challenge procedure under Sections 12 and 13, but could not sidestep the arbitral process altogether.

Conclusion: The petition under Sections 14 and 15 was untenable. The fresh tribunal was validly constituted, the earlier mandate having terminated, and the challenge to continuation of arbitration failed.

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