The Supreme Court in a recent judgment delivered on June 11,2012:
"We have carefully gone through the arbitration clause in the
Agreement dated 16.12.1989 and, in our view, the words “at any time” which
appear in Clause 21, is of considerable importance. “At any time”
expresses a time when an event takes place expressing a particular state or
condition that is when the dispute or difference arises. The arbitration
clause 21 has no nexus with the life time of the named arbitrator. The
expression “at any time” used in the arbitration clause has nexus only to
the time frame within which the question or dispute or difference arises
between the parties be resolved. Those disputes and differences could be
resolved during the life time of the named arbitrators or beyond their life
time. The incident of the death of the named arbitrators has no nexus or
linkage with the expression “at any time” used in clause 21 of the
Agreement. The time factor mentioned therein is the time within which the
question or dispute or difference between the parties is resolved as per
the Agreement. Arbitration clause would have life -
so long as any question or dispute or difference between the parties exists
unless the language of the clause clearly expresses an intention to the
contrary. The question may also arise in a given case that the named
arbitrators may refuse to arbitrate disputes, in such a situation also, it
is possible for the parties to appoint a substitute arbitrator unless the
clause provides to the contrary. Objection can be raised by the parties
only if there is a clear prohibition or debarment in resolving the question
or dispute or difference between the parties in case of death of the named
arbitrator or their non-availability, by a substitute arbitrator."
