Shanmughasundaram And Ors vs Diravia Nadar (D) By Lrs. And Anr

The Supreme Court held that under the Arbitration Act, 1940, the High Court erred in setting aside the order of the subordinate judge allowing the substitution of a deceased arbitrator. The Court emphasized that the principles of natural justice must be adhered to in arbitration proceedings, and the absence of participation from all parties, including the sisters who had a share in the property, rendered the original award invalid. The Court reinstated the subordinate judge's order, allowing the substitution of the arbitrator and affirming the validity of the arbitration agreement.