Gujarat HC Looks at How Changing an Arbitrator Affects Arbitration Timelines
The Gujarat High Court is discussing whether changing an arbitrator means that the timeline for an ongoing arbitration process needs to be restarted. This question comes up because bringing in a new arbitrator could affect how long the arbitration takes.
Main Points
The court is trying to figure out if replacing an arbitrator resets the timeline for the arbitration or if the original timeline should still apply.
Impact on Ongoing Cases
The court’s decision could greatly affect people involved in arbitration. If they decide that timelines need to be recalculated, it might lead to longer arbitration processes, which could increase both time and costs.
As the court continues to think about this issue, those involved in arbitration cases are paying close attention to see how this ruling might change future arbitration practices in Gujarat.
This issue came up in a petition questioning the validity of an arbitral award, with Senior Advocate Kapil Sibal representing the appellant. He pointed out that an arbitration reference made on February 1, 2018, had a deadline of January 31, 2019, but the process continued past this date despite objections.
Chief Justice Sunita Agarwal led the Court, noting that several arbitrators had resigned during the proceedings. The main question was whether the timeline for completing the arbitration resets with a new arbitrator. Chief Justice Agarwal stated that the mandate of a resigning arbitrator ends, but the arbitration process continues with the new panel. Sibal argued that this change does not extend the arbitration deadline, as per Section 29A of the Arbitration and Conciliation Act. The court plans to hear the matter again on September 30.
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