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Sections 14-15 of the Arbitration and Conciliation Act, 1996: failure to act, termination of mandate and substitute arbitrator

An arbitrator's mandate terminates and he is substituted by another arbitrator if he becomes de jure or de facto unable to perform his functions or fails to act without undue...

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Arbitration
Published
October 2, 2026
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Oct 5, 2026
Reading time
8 min
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Last updated: October 2026Applies to: FY 2026-27 (AY 2027-28)Verified against: Government sources

Sections 14 and 15 deal with an arbitrator who cannot or does not continue. Section 14 says when the mandate terminates and lets a party go to the Court if there is a dispute about it. Section 15 adds other ways a mandate ends and explains how a substitute is appointed and what happens to earlier hearings and orders.

Reading the two sections together

Section 13 covers a challenge on the section 12(3) grounds; see our article on the challenge procedure. Sections 14 and 15 cover what happens when the arbitrator drops out or stops acting. In the India Code consolidated text they are the last two sections of Chapter III of Part I, "Composition of arbitral tribunal". One point of wording in the official text is flagged here and quoted as printed: in section 14(1), clauses (a) and (b) are joined by "; and". Section 15 reads cleanly and carries no footnote. If an arbitrator has gone silent or a party wants to replace one, arbitration support can help you plan the steps before approaching the Court.

Section 14(1): when the mandate terminates and a substitute follows

The footnote shows the opening words as substituted by s. 9 of Act 3 of 2016, with effect from 23-10-2015. The old words were "The mandate of an arbitrator shall terminate if". The substitution added the words "and he shall be substituted by another arbitrator".

The mandate terminates and the arbitrator is substituted if:

ClauseCircumstance
(a)He becomes de jure or de facto unable to perform his functions, or for other reasons fails to act without undue delay
(b)He withdraws from his office, or the parties agree to the termination of his mandate

The official text joins the two with "; and". Read literally that could suggest both are needed together. It reads more naturally as two separate circumstances, but the text itself is not clear on the point, so we quote it as printed and do not resolve it. Sub-section (2), which speaks of "any of the grounds referred to in clause (a)", treats clause (a) as a set of grounds on its own.

"De jure" and "de facto" inability are not defined in the text consulted. In plain terms, one concerns the legal position and the other the actual position.

Section 14(2): when there is a controversy

"If a controversy remains concerning any of the grounds referred to in clause (a) of sub-section (1), a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the mandate."

Points to note:

  • It covers only the clause (a) grounds: inability to perform or failure to act without undue delay.
  • It is a party's application, not the tribunal's.
  • The parties may agree otherwise, for example a clause that sends such questions to an institution.
  • "Court" has the meaning in section 2(1)(e); see section 2. Section 5 allows a court to act only where Part I so provides, and this is such a place; see sections 5 and 6.
  • The text gives no time limit and no procedure for the application, and we state none.

Section 14(3): withdrawal is not an admission

If, under section 14 or section 13(3), an arbitrator withdraws or a party agrees to the termination of the mandate, "it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12." So an arbitrator who steps aside, or a party who agrees to the termination, is not admitting that the alleged ground was valid. This helps a party avoid a long argument and reach a replacement quickly.

Section 15(1): other ways a mandate ends

"In addition to the circumstances referred to in section 13 or section 14, the mandate of an arbitrator shall terminate":

  • (a) where he withdraws from office for any reason; or
  • (b) by or pursuant to agreement of the parties.

Note that withdrawal appears in both sections: in section 14(1)(b) alongside the parties' agreement and in section 15(1)(a) "for any reason". The sections overlap, and the effect for the reader is the same: if he withdraws, the mandate ends.

Section 15(2): who appoints the substitute

"Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced." So the first step is to look at how the original arbitrator came to be appointed. For the appointment provision itself, see our post on section 11.

Section 15(3): hearings already held

"Unless otherwise agreed by the parties, where an arbitrator is replaced under sub-section (2), any hearings previously held may be repeated at the discretion of the arbitral tribunal." The word is "may", and the discretion is with the tribunal, not with a party. A party who wants hearings repeated, or who wants them not repeated, should say so in the agreement or ask the reconstituted tribunal early.

Section 15(4): earlier orders stay

"Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal made prior to the replacement of an arbitrator under this section shall not be invalid solely because there has been a change in the composition of the arbitral tribunal." The word "solely" matters: a change of arbitrator alone is not a ground for invalidity. Another ground may still be raised on its own merits.

A worked example

Joshi Textiles and Verma Dyes are in an arbitration with a sole arbitrator. After the first two hearings, the arbitrator stops responding to the parties for several months. Joshi writes to ask for a date, receives no reply and Verma disputes that the arbitrator has failed to act. Because a controversy remains on the clause (a) ground, Joshi may apply to the Court under section 14(2), unless their agreement says otherwise. If the mandate terminates, a substitute is appointed under the same rules that applied to the first appointment. The new arbitrator may repeat the earlier hearings at the tribunal's discretion, and the earlier interim order is not invalid solely because the arbitrator changed.

How this links to the time limit

If a Court extends the time under section 29A, it may substitute one or all of the arbitrators, and the proceedings then continue from the stage already reached; see section 29A. That is a separate power, in a different section, from the termination rules above.

Need help with an arbitrator who has stopped acting?

If an arbitrator has withdrawn, gone silent or become unable to act, the next steps depend on your agreement and on the rules under which he was appointed. Our arbitration support team can review the clause and help you plan the application or the replacement.

Key takeaways

  • The mandate terminates and a substitute follows if the arbitrator is unable to perform or fails to act without undue delay, or withdraws, or the parties agree.
  • If a controversy remains on inability or failure to act, a party may apply to the Court unless otherwise agreed.
  • Withdrawal or agreement to termination does not imply acceptance of any ground.
  • A substitute is appointed under the rules that applied to the original appointment.
  • Earlier hearings may be repeated at the tribunal's discretion; earlier orders are not invalid solely because of the change.

Read next

Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 14-15

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

When does an arbitrator's mandate terminate?

When he is unable to perform, fails to act without undue delay, withdraws, or the parties agree to terminate, among the circumstances in sections 13, 14 and 15.

Who can apply to the Court under section 14(2)?

A party, where a controversy remains about the clause (a) grounds, unless the parties have agreed otherwise.

Limitation runs quietly — know the last date before you decide to wait.

— TaxClue Legal Desk

Sections 14-15: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

When he is unable to perform, fails to act without undue delay, withdraws, or the parties agree to terminate, among the circumstances in sections 13, 14 and 15.

A party, where a controversy remains about the clause (a) grounds, unless the parties have agreed otherwise.

A substitute is appointed according to the rules that applied to the appointment of the arbitrator being replaced.

Not necessarily. Previously held hearings may be repeated at the tribunal's discretion, unless the parties agree otherwise.

No. They are not invalid solely because of the change in composition, unless the parties agree otherwise.

Section 14(3) says withdrawal, or a party's agreement to termination, does not imply acceptance of the validity of any ground.