Introduction
In Ankhim Holdings Pvt. Ltd. vs. Zaveri Construction Pvt. Ltd. (2026 INSC 137), the Supreme Court of India examined whether a High Court, while substituting an arbitrator under Section 15(2) of the Arbitration and Conciliation Act, 1996 ("the Act"), can go further and declare prior arbitral proceedings to be a "nullity" on the ground that they were conducted during the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 ("IBC").
The Apex Court held that Section 15(2) of the Act vests a limited power with respect to substitution. It cannot be used to set aside the arbitral tribunal's orders, or to wipe out steps already taken in the arbitration. Accordingly, the Supreme Court set aside the portion of the order passed by the High Court of Bombay that declared the proceedings undertaken by the arbitral tribunal across seven hearings a nullity and reiterated that substitution should preserve continuity and efficiency.
