Delhi High Court in a matter titled as Power Grid Corporation of India Ltd Vs. Deepak Cables (India) Limited; OMP (T)(COMM) 4/2017 decided on 25th January, 2017 held that under 14 (1)(b) of the Arbitration and Conciliation Act 1996 the mandate of an Arbitral Tribunal may be terminated where the parties so agree and the Arbitrator shall terminate arbitral proceedings by or pursuant to an agreement between the parties. The Tribunal is only required to enquire whether, there was an agreement between the parties. Where is it established that parties have agreed to terminate the proceedings, it is incumbent upon the tribunal to terminate the proceedings.
In this particular case the parties had moved a joint application before the Arbitral Tribunal for the termination of the procedings, however, the Arbitral Tribunal refused to terminate the same. The High Court observed that the Tribunal did not have much choice if the circumstances exists for termination of proceedings. Agreement between the parties is one such condition wherein the Arbitrator is compelled to terminate the proceedings.