Sections 43E explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 43E, 43F and 43G deal with the life of the Arbitration Council of India's membership. Section 43E says that a vacancy or a defect in constitution does not invalidate the Council's acts. Section 43F lets the Chairperson or a Member resign by written notice, with a three-month continuation rule for some offices. Section 43G sets out six grounds on which the Central Government may remove a Member, and requires a Supreme Court inquiry for two of them. This article reads them as per the India Code consolidated text consulted.
No act or proceeding of the Council is invalid merely by reason of a vacancy, a defect in constitution or appointment, or an irregularity in procedure not affecting the merits (section 43E). A Chairperson or Member may resign by written notice to the Central Government (section 43F); the Chairperson or the "Full-time Member" continues for up to three months unless permitted to leave sooner. The Central Government may remove a Member on six grounds (section 43G), but for the grounds in clauses (d) and (e) only after a Supreme Court inquiry and report.
Where these sections sit
All three are in Part IA, which the footnote shows as inserted by Act 33 of 2019, section 10, with effect from 12-10-2023. For establishment see our article on sections 43A and 43B, for composition see section 43C and for duties section 43D. The text consulted does not say who sits on the Council, and nothing in this article suggests any person has been removed or has resigned. A person concerned about their own position can take a legal consultation.
Section 43E: vacancies do not invalidate proceedings
"No act or proceeding of the Council shall be invalid merely by reason of—
(a) any vacancy or any defect, in the constitution of the Council; (b) any defect in the appointment of a person acting as a Member of the Council; or (c) any irregularity in the procedure of the Council not affecting the merits of the case."
Clause (c) carries a limit: the irregularity must be one "not affecting the merits of the case". Clauses (a) and (b) have no such limit as printed. The section protects the Council's acts from being treated as invalid on those grounds alone; it does not say what remedy exists for the defect itself.
Section 43F: resignation
"The Chairperson or the Full-time or Part-time Member may, by notice in writing, under his hand addressed to the Central Government, resign his office."
The proviso: "the Chairperson or the Full-time Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier."
A point to flag. Section 43F speaks of "the Full-time or Part-time Member", but section 43C names a Part-time Member in clause (f) and no "Full-time Member". The text consulted prints the section as it stands, and this article does not decide who the Full-time Member is. Section 43G(1)(b) also refers to "Part-time Member" in a parenthesis.
Reading only the words of the proviso:
| Situation | Position under the proviso |
|---|---|
| Chairperson or Full-time Member gives notice | Continues until the earliest of three months from receipt, a successor entering upon office, or expiry of the term |
| Permission by the Central Government to leave sooner | Office may be relinquished sooner |
| Part-time Member gives notice | The proviso does not name the Part-time Member; the text consulted states no notice period for that Member |
| Other Members | The proviso does not name them; the text is silent |
Section 43G: removal
Sub-section (1): the grounds
The Central Government may remove a Member from his office if he:
| Clause | Ground as printed |
|---|---|
| (a) | is an undischarged insolvent |
| (b) | has engaged at any time (except Part-time Member), during his term of office, in any paid employment |
| (c) | has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude |
| (d) | has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member |
| (e) | has so abused his position as to render his continuance in office prejudicial to the public interest |
| (f) | has become physically or mentally incapable of acting as a Member |
Two details matter. First, "Member" in section 43A includes the Chairperson, so these grounds reach the Chairperson. Second, the exception "(except Part-time Member)" in clause (b) means the paid-employment ground does not apply to the Part-time Member.
Sub-section (2): Supreme Court inquiry
"Notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed."
In steps:
- The Central Government must make a reference to the Supreme Court.
- The Supreme Court holds an inquiry "in accordance with such procedure as may be prescribed in this behalf by the Supreme Court". That procedure is not in the source.
- The Supreme Court must report that the Member "ought on such ground or grounds to be removed".
- Only then can the Member be removed on ground (d) or (e).
For the other four grounds, (a), (b), (c) and (f), sub-section (2) does not require an inquiry. The text consulted adds no procedure for them, such as notice or hearing; this article states none.
Comparison with the Mediation Council
The Mediation Act, 2023 has a separate set of provisions for its own Council's members, including resignation and removal; see our post on sections 33–37 of that Act. It is a separate body under another Act, and none of its provisions apply to the Arbitration Council of India.
An example
A Member of the Council who is not the Part-time Member takes up a salaried post with a private company during her term. Under section 43G(1)(b), that is a ground on which the Central Government "may" remove her, because she "has engaged at any time ... during his term of office, in any paid employment". The Part-time Member would not be caught by that clause. If the ground alleged were instead an interest affecting her functions (clause (d)), sub-section (2) would require a Supreme Court inquiry and report before removal.
Now take the Chairperson, who gives written notice of resignation to the Central Government. Under the proviso to section 43F, he continues to hold office until the earliest of three months from receipt, a duly appointed successor entering upon office, or the end of his term, unless the Central Government permits him to leave sooner.
Need help with a Council or appointment question?
Questions about who may sit on a statutory body, and for how long, turn on the text of the Act and on rules and notifications that are outside the source for this article. Our legal consultation team can review them with you.
Key takeaways
- Section 43E protects the Council's acts from invalidity merely because of a vacancy, a defect in constitution or appointment, or a procedural irregularity not affecting the merits.
- Section 43F lets the Chairperson or a Member resign by written notice to the Central Government; the Chairperson or Full-time Member continues until the earliest of three months, a successor's entry or the end of the term, unless permitted to leave sooner.
- Section 43F speaks of a "Full-time Member", a term that section 43C does not use.
- Section 43G lists six grounds for removal; clauses (d) and (e) require a Supreme Court inquiry and report first.
- The procedure for the Supreme Court inquiry is "as may be prescribed" by the Supreme Court; it is not in the source.
Read next
- Sections 43-I, 43J and 43K: grading, accreditation and depository of awards
- Sections 43H, 43L and 43M: experts, regulations and Chief Executive Officer
- Section 43D: duties and functions of the Council
- Arbitration and Conciliation Act 2019 amendment: key changes
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.