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SC held that the sole arbitrator's mandate had automatically terminated on expiry of the statutory period under Section 29A(1) of the Arbitration and Conciliation Act, 1996, after exclusion of the Covid-19 period. As no application for extension was made before expiry, the arbitrator became functus officio and could not continue. SC ruled that the HC erred in merely extending the mandate instead of substituting the arbitrator under Section 29A(6). The impugned HC order was quashed, the existing arbitrator's mandate was declared terminated by operation of law, and a former HC judge was appointed as substituted sole arbitrator, directed to conclude proceedings within six months. Appeal allowed.
SC held that the sole arbitrator's mandate had automatically terminated on expiry of the statutory period under Section 29A(1) of the Arbitration and Conciliation Act, 1996, after exclusion of the Covid-19 period. As no application for extension was made before expiry, the arbitrator became functus officio and could not continue. SC ruled that the HC erred in merely extending the mandate instead of substituting the arbitrator under Section 29A(6). The impugned HC order was quashed, the existing arbitrator's mandate was declared terminated by operation of law, and a former HC judge was appointed as substituted sole arbitrator, directed to conclude proceedings within six months. Appeal allowed.
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