Petition for Arbitrator Substitution Deemed Misconceived; Parties Opt for Mediation to Resolve Issues and Avoid Costs
In a significant decision, the Bombay High Court has directed parties involved in an arbitration dispute to explore mediation as a means of resolution, dismissing a petition for substitution of the arbitrator. The case, Amit Chaursia v. ICICI Bank Limited, was presided over by Justice Somasekhar Sundaresan, who concluded that the petition for substitution was misconceived due to the pre-agreed terms of arbitration between the parties.
The petitioner, Amit Chaursia, had filed the petition seeking the substitution of the arbitrator on grounds of lack of consensus. However, the court noted that the parties had previously agreed to arbitration facilitated by a named Online Dispute Resolution Agency, which provided opportunities for conciliation before moving to arbitration. The petitioner did not dispute receiving these intimations, and the court found no lack of consensus as claimed.
Justice Sundaresan observed that the terms and conditions of the contract, which included arbitration clauses, were accessible to both parties and governed by the Online Dispute Resolution Agency. Consequently, the court determined that the petition for substitution of the arbitrator was not justified.
Despite the dismissal of the petition, the court acknowledged the willingness of both parties to seek mediation as a potential solution to avoid the expenses associated with arbitration. The court directed the parties to present themselves at the Main Mediation Centre of the Bombay High Court by 4:00 p.m. on December 12, 2025. The mediation centre will issue further instructions on proceeding with the matter, and the parties are required to inform the arbitrator about the mediation exercise.
The court's decision underscores the importance of adhering to pre-agreed dispute resolution mechanisms and highlights the potential for mediation to serve as a cost-effective alternative to arbitration. This judgment reflects the judiciary's inclination towards fostering amicable resolutions and minimizing litigation costs for parties involved in disputes.
Bottom Line:
Arbitration - Substitution of arbitrator - Parties had pre-agreed to an Online Dispute Resolution Agency for arbitration - Petition for substitution of arbitrator misconceived in the absence of any lack of consensus as per the agreement terms - Parties agree to mediation to explore resolution and avoid arbitration expenses.
Statutory provision(s): Arbitration and Conciliation Act, 1996
Amit Chaursia v. ICICI Bank Limited, (Bombay) : Law Finder Doc Id # 2824217
