{"id":375543,"date":"2026-02-12T15:00:15","date_gmt":"2026-02-12T09:30:15","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=375543"},"modified":"2026-02-17T16:26:11","modified_gmt":"2026-02-17T10:56:11","slug":"sc-section-29-a-of-arbitration-and-conciliation-act-arbitrator-substitution","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/12\/sc-section-29-a-of-arbitration-and-conciliation-act-arbitrator-substitution\/","title":{"rendered":"Section 29-A doesn\u2019t mandate automatic substitution of Arbitrator; Supreme Court set asides order terminating mandate"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Supreme Court:<\/span> In an appeal arising from the Madhya Pradesh High Court&#8217;s interim order dated 02-12-2025 where in the Court declared the mandate of the existing Arbitrator in the ongoing arbitration proceedings between the parties to be terminated and directed the parties to propose the name of a new Arbitrator for appointment, a Division Bench of Sanjay Kumar and Alok Aradhe, JJ., set aside the impugned order and held that Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544931\" target=\"_blank\">29-A<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration and Conciliation Act, 1996<\/a> (A&amp;C Act) does not mandate automatic substitution of Arbitrator.<\/p>\n<p style=\"margin-bottom: 3%;\">The High Court relied upon <span style=\"font-style: italic;\">Mohan Lal Fatehpuria<\/span> v. <span style=\"font-style: italic;\">Bharat Textiles<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/h9BiA2df\" target=\"_blank\">2025 SCC OnLine SC 2754<\/a>, while interpreting Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544931\" target=\"_blank\">29-A(6)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">A&amp;C Act<\/a> and termination of the Arbitrator&#8217;s mandate and directed substitution of the Arbitrator. Aggrieved by the termination of the Arbitrator&#8217;s mandate and the direction for substitution, the appellant approached the Supreme Court.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court noted that &#8220;the impugned interim order has been passed by the High Court on a misinterpretation of the ratio of the decision of this Court in <span style=\"font-style: italic;\">Mohan Lal Fatehpuria<\/span> (Supra).&#8221; It was noted that in paragraph 13 of <span style=\"font-style: italic;\">Mohan Lal Fatehpuria<\/span> (Supra), while dealing with Section 29-A(6), it was held that the provision &#8220;empowers and obligates the Court to substitute an Arbitrator.&#8221; The High Court construed the word &#8220;obligates&#8221; as mandating substitution in every case where the mandate stands terminated.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court clarified that when the expression &#8220;obligates&#8221; was used, &#8220;it only meant that a substitute Arbitrator would be appointed if the situation so warranted.&#8221; It is &#8220;not an inference which would necessarily follow the mandate of the Arbitrator standing terminated under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544931\" target=\"_blank\">29-A(4)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>.&#8221;<\/p>\n<p style=\"margin-bottom: 3%;\">The Court relied upon <span style=\"font-style: italic;\">C. Velusamy<\/span> v. <span style=\"font-style: italic;\">K. Indhera<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/QG6oX8Hx\" target=\"_blank\">2026 SCC OnLine SC 142<\/a>, wherein it was clarified that <span style=\"font-style: italic;\">Mohan Lal Fatehpuria<\/span> (Supra) <span style=\"font-style: italic;\">&#8220;does not mandate the substitution of an Arbitrator as an inevitable consequence, when the Court is considering the extension of mandate that has already expired.&#8221;<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">The Court further referenced to <span style=\"font-style: italic;\">Jagdeep Chowgule<\/span> v. <span style=\"font-style: italic;\">Sheela Chowgule<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/3XmTQ97l\" target=\"_blank\">2026 SCC OnLine SC 124<\/a>, which held that <span style=\"font-style: italic;\">&#8220;Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544910\" target=\"_blank\">11<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a> will have no bearing on the working of the provisions of Chapter 5 and 6, wherein Section 29-A is located.&#8221;<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">For the aforementioned reasons, the Court held that the application for extension of time under Section 29-A(4) did not lie before the High Court. The Court quashed and set aside the impugned order dated 02-12-2025 passed by the High Court.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court directed the application which had been disposed of by the Commercial Court, Bhopal to &#8220;stand revived&#8221;. It further directed the Commercial Court to decide the application seeking extension of the mandate of the Arbitrator expeditiously.<\/p>\n<p style=\"margin-bottom: 3%;\">However, the Court clarified that it had <span style=\"font-style: italic;\">&#8220;not expressed any opinion on the merits of the application seeking extension of the mandate of the Arbitrator which shall be decided on its own merits and in accordance with law by the Commercial Court.&#8221;<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Viva Highways Ltd. v. M.P. Road Development Corporation Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/U234g1pr\" target=\"_blank\" rel=\"noopener\">2026 SCC OnLine SC 195<\/a>, Decided on 06-02-2026<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\">Mr. Soayib Qureshi, AOR, Mr. Sandeep Bajaj, Ms. Chetna Alagh, and Mr. Mayank Biyani, Counsel for the Petitioner<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;The impugned interim order has been passed by the High Court on a misinterpretation of the ratio of the decision of this Court in Mohan Lal Fatehpuria (supra).&#8221;<\/p>\n","protected":false},"author":67514,"featured_media":375547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[10131,98719,98720,30168,57697,98718,86737,5363,72750],"class_list":["post-375543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-arbitration-and-conciliation-act","tag-extension-of-arbitrator-mandate","tag-interpretation-of-section-29-a","tag-justice-alok-aradhe","tag-justice-sanjay-kumar","tag-section-29-a","tag-substitution-of-arbitrator","tag-supreme-court","tag-termination-of-arbitrator"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SC: Section 29-A of Arbitration and Conciliation Act doesn\u2019t mandate automatic Arbitrator substitution | SCC Times<\/title>\n<meta name=\"description\" content=\"Supreme Court held that Section 29A of Arbitration and Conciliation Act does not mandate automatic substitution of an arbitrator upon termination of mandate.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/12\/sc-section-29-a-of-arbitration-and-conciliation-act-arbitrator-substitution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Section 29-A doesn\u2019t mandate automatic substitution of Arbitrator; 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Ltd. vs. Berger Paints India Ltd.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"application under S.29A","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/application-under-S.29A.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/application-under-S.29A.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/application-under-S.29A.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/application-under-S.29A.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":323372,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/01\/will-arbitration-proceedings-survive-if-mandate-of-arbitrator-is-terminated-dhc-answers-legal-news\/","url_meta":{"origin":375543,"position":1},"title":"Will arbitration proceedings survive if mandate of arbitrator is terminated? 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