Arbitration, Mediation and Conciliation · Challenge to Award and Appeals

Failure or Impossibility to Act and Termination of Mandate

Updated 11 October 2026 · Fact-checked

Under Section 14, an arbitrator's mandate terminates and a substitute is appointed if he cannot perform his functions or fails to act without undue delay, and he withdraws or the parties agree to end his mandate. Section 15 adds withdrawal or agreement, and the substitute is appointed by the original rules.

Understand Failure or Impossibility to Act and Termination of Mandate

An arbitrator gets his authority, called the mandate, from the parties' agreement and the Act. That mandate does not last forever. It can end because the arbitrator cannot or will not do the job, or because he steps down, or because the parties agree to end it.

Section 14 deals with failure or impossibility to act. The arbitrator may be unable to perform, in law (de jure) or in fact (de facto). Examples: he is disqualified by law, or he is seriously ill. He may also simply fail to act without undue delay. The section is not satisfied by inability alone. Read the text: clause (a) is the ground, and clause (b) is the step that follows: he withdraws from office, or the parties agree to terminate his mandate. Both must be present for termination under Section 14(1).

If the parties or the arbitrator do not accept the ground, there is a controversy. Then, under Section 14(2), a party may, unless the parties have agreed otherwise, apply to the Court to decide on the termination of the mandate. The court decides only whether the ground in clause (a) exists.

Section 14(3) protects the arbitrator and parties. If an arbitrator withdraws, or a party agrees to termination, under Section 14 or Section 13(3), it does not mean they accept that the ground is valid. This lets people exit without admitting fault.

Section 15 adds two more circumstances: the arbitrator withdraws for any reason, or the parties agree to end the mandate. Once the mandate ends, a substitute arbitrator is appointed under the rules that applied to appointing the arbitrator being replaced. Earlier hearings may be repeated at the tribunal's discretion, and earlier orders are not invalid just because the tribunal's composition changed, unless the parties agree otherwise.

Key rules to remember

Section 14(1): termination and substitution: Ground (a): de jure or de facto unable to perform, or fails to act without undue delay; AND step (b): withdrawal or parties' agreement to terminate; Mandate terminates and he is substituted by another arbitrator. Clause (a) is the ground; clause (b) is the step that follows.
Section 14(2): court decides controversy: Controversy on ground in 14(1)(a) → party may apply to Court, unless otherwise agreed; The application is to the Court, not to the tribunal. The parties can agree on a different mechanism.
Section 14(3): no admission: Withdrawal or agreement to termination ≠ acceptance of validity of the ground; Applies to Section 14 and Section 13(3); it also refers to the grounds in Section 12(3).
Section 15(1): additional grounds: Mandate also terminates on (a) withdrawal for any reason, or (b) agreement of the parties; These apply in addition to Sections 13 and 14.
Section 15(2): substitute: Substitute appointed according to the rules applicable to the appointment of the arbitrator being replaced; If the original was nominated by a party, the same method applies to the replacement.
Section 15(3): earlier hearings: Unless otherwise agreed, previous hearings may be repeated at the tribunal's discretion; Repetition is permitted, not mandatory.
Section 15(4): earlier orders: Unless otherwise agreed, earlier order or ruling is not invalid solely because the tribunal's composition changed; Other grounds of invalidity may still be raised.

How to solve Failure or Impossibility to Act and Termination of Mandate questions

Use this method for any problem on termination of an arbitrator's mandate and substitution.

1Identify what happened to the arbitrator: illness, disqualification, delay, withdrawal, or agreement of the parties.
2Match it to the provision. Inability or undue delay is Section 14(1)(a). Withdrawal or agreed termination is Section 14(1)(b) or Section 15(1).
3Check whether the ground is disputed. If yes, a party may apply to the Court under Section 14(2), unless the parties agreed otherwise.
4State the effect: the mandate terminates and a substitute is appointed.
5Apply Section 15(2): the substitute is appointed under the rules that applied to the original arbitrator's appointment.
6Deal with earlier proceedings: hearings may be repeated at the tribunal's discretion, and earlier orders stay valid solely because of the change, unless the parties agreed otherwise (Section 15(3) and (4)).
7Add Section 14(3): withdrawal or agreement is not an admission of the ground.
8Conclude clearly in one or two lines.

Quickest way: Ground, step, substitute, past proceedings

When to use it: Use it for short-note questions or when time is tight in a case-based question.

Ground: unable or fails to act, or withdrawal or agreement.
Dispute: Court under Section 14(2).
Substitute: same appointment rules, Section 15(2).
Past: hearings may be repeated, orders not invalid solely for the change.
Close with Section 14(3): no admission.

Common mistakes in Failure or Impossibility to Act and Termination of Mandate

Saying inability to act alone ends the mandate under Section 14(1).
Students remember only clause (a) and forget that clause (b) is joined by 'and'.
Fix: Write both: the ground in clause (a), and withdrawal or the parties' agreement in clause (b). If the ground is disputed, go to the Court under Section 14(2).
Saying the tribunal itself decides a dispute on termination.
Students confuse this with Section 13 challenge procedure.
Fix: Section 14(2) says a party may apply to the Court, unless otherwise agreed by the parties.
Saying earlier hearings must be repeated after substitution.
The word 'repeated' sounds compulsory.
Fix: Section 15(3) says hearings may be repeated at the tribunal's discretion, unless the parties agreed otherwise.
Saying earlier orders become invalid when an arbitrator is replaced.
Students assume a new tribunal starts afresh.
Fix: Under Section 15(4), unless otherwise agreed, an earlier order is not invalid solely because the composition changed.
Appointing the substitute by any method the court prefers.
Students skip Section 15(2).
Fix: The substitute is appointed according to the rules applicable to the appointment of the arbitrator being replaced.
Treating withdrawal as an admission that the ground was valid.
Students ignore Section 14(3).
Fix: State that withdrawal or agreement to termination does not imply acceptance of the validity of the ground.

Worked examples

Example 1

Mr Rao, sole arbitrator in a dispute between Kaveri Textiles Ltd and Sahyadri Dyes Ltd, has not held any sitting for many months without explanation. Kaveri Textiles wants him removed, but he refuses to withdraw and Sahyadri Dyes does not agree. Advise Kaveri Textiles.

Show the solution

Provision: Section 14(1)(a) covers an arbitrator who for other reasons fails to act without undue delay.
Facts: months of inaction without explanation fit the failure to act without undue delay.
Controversy: Mr Rao refuses to withdraw and the other party does not agree, so there is a controversy about the ground.
Remedy: Section 14(2) allows a party to apply to the Court to decide on termination, unless the parties agreed otherwise.
Effect: if the Court finds the ground exists and terminates the mandate, a substitute arbitrator is appointed under Section 15(2) by the rules applicable to Mr Rao's original appointment.

Answer: Kaveri Textiles may apply to the Court under Section 14(2), unless the parties agreed on another route. If the Court decides the mandate terminates, a substitute is appointed according to the rules that applied to Mr Rao's appointment.

Example 2

A three-member tribunal heard witnesses for two weeks and passed an interim procedural order. One arbitrator, Ms Iyer, then withdrew from office. A substitute was appointed. The respondent says all hearings must be repeated and the earlier order is void. The parties had no agreement on these points. Examine.

Show the solution

Provision: Section 15(1)(a) says the mandate terminates where an arbitrator withdraws from office for any reason.
Substitute: under Section 15(2), the substitute is appointed by the rules that applied to appointing Ms Iyer.
Hearings: Section 15(3) says that unless the parties agree otherwise, previously held hearings may be repeated at the discretion of the tribunal. Repetition is not compulsory.
Order: Section 15(4) says that unless otherwise agreed, an earlier order is not invalid solely because the composition changed.
Result: both contentions of the respondent fail as stated, since there was no contrary agreement.

Answer: The respondent is wrong on both points. Hearings may be repeated at the tribunal's discretion but need not be, and the procedural order is not invalid merely because the tribunal's composition changed.

Exam tips

Quote Sections 14 and 15 by number and state which clause applies. Examiners reward precise provision-fact-conclusion answers.
Use the words 'de jure', 'de facto' and 'undue delay' from Section 14(1)(a) when facts describe inability or delay.
Always include the phrase 'unless otherwise agreed by the parties' for Section 14(2), 15(3) and 15(4).
In case questions, close with who appoints the substitute and what happens to earlier hearings and orders.
Do not mix this topic with Section 29A, where mandate terminates on the expiry of the time limit. Keep it as a separate ground if the facts show delay in making the award.

Practice questions from Challenge to Award and Appeals

Failure or Impossibility to Act and Termination of Mandate: frequently asked questions

What is the difference between Section 14 and Section 15?

Section 14 deals with an arbitrator who is unable to act or fails to act without undue delay, followed by withdrawal or agreed termination. Section 15 adds that the mandate also ends on withdrawal for any reason or by agreement of the parties, and it sets out how the substitute is appointed and the effect on earlier proceedings.

Who decides if the arbitrator has failed to act?

If there is a controversy about the ground in Section 14(1)(a), a party may apply to the Court to decide on termination of the mandate, unless the parties have otherwise agreed.

How is a substitute arbitrator appointed?

Under Section 15(2), the substitute is appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.

Do earlier hearings have to be repeated after a substitute arbitrator joins?

No. Unless the parties agree otherwise, Section 15(3) lets the tribunal repeat earlier hearings at its discretion. Section 15(4) adds that earlier orders are not invalid solely because the tribunal's composition changed.

Does withdrawing mean the arbitrator admits the ground against him?

No. Section 14(3) says withdrawal or a party's agreement to termination does not imply acceptance of the validity of any ground mentioned in Section 14 or Section 12(3).