LI Network
Published on: January 20, 2024 at 11:56 IST
The High Court of Delhi has ruled that the limitation period for the appointment of a substitute arbitrator is three years from the date when the right to apply for such an appointment accrues.
Justice Pratibha M. Singh’s bench determined that, as the law does not explicitly prescribe a time frame for the appointment of a substitute arbitrator, the residual provision in Article 137 of the Limitation Act applies, setting a three-year limitation period from the date when the right to apply arises.
The case involved parties engaged in the business ‘Lahore Timber House,’ with an agreement to resolve disputes through arbitration. Following a dispute, the petitioners filed an application under Section 11(6) of the Arbitration and Conciliation Act.
While the arbitrator was appointed, mutual settlement attempts were made, leading to mediation. However, before formal arbitral proceedings could commence, the arbitrator passed away due to Covid-19 in March 2022, and the original respondent also succumbed to the virus in July 2021.
The petitioners then filed applications seeking the appointment of a substitute arbitrator under Sections 11, 14, and 15 of the Arbitration and Conciliation Act, along with an application under Section 9 seeking an injunction against third-party interests in the property.
The Court held that the limitation period for the appointment of a substitute arbitrator begins three years from the date when the right to apply for such an appointment accrues.
Considering the circumstances, including the death of the arbitrator and the original respondent, the court found that the petitioners moved the application for the substitution of the arbitrator within the permissible time frame.
Additionally, the Court emphasized that, since the initial arbitrator was appointed under Section 11(6) of the Act, the appointment of the substitute arbitrator would also be governed by the same provision. Consequently, the court allowed the petition and appointed Justice R.S. Endlaw (Retd.) as the substitute arbitrator.
Case Title: Jatinder Kaur & Ors v. Late Jagjit Singh & Ors, ARB.P. 1167 of 2022