Section 32(2) in The Arbitration And Conciliation Act, 1996
(2)The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where(a)the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute,(b)the parties agree on the termination of the proceedings, or(c)the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.
