Arbitration and Conciliation Act, 1996
Section 15 of the Arbitration Act: Termination of Mandate and Substitution of Arbitrator
Section 15 of the Arbitration and Conciliation Act, 1996 deals with additional circumstances in which an arbitrator's mandate terminates and explains how a substitute arbitrator is appointed. It also addresses whether earlier hearings may be repeated and whether orders or rulings made before replacement remain valid.
Meaning and purpose of Section 15
Section 15 supplements Sections 13 and 14. It identifies further circumstances in which an arbitrator's mandate ends and provides continuity rules when a replacement arbitrator is appointed.
- Section 15(1): the mandate also terminates where the arbitrator withdraws for any reason or by or pursuant to agreement of the parties.
- Section 15(2): the substitute arbitrator must be appointed according to the rules applicable to the original appointment.
- Section 15(3): unless the parties agree otherwise, earlier hearings may be repeated at the discretion of the arbitral tribunal.
- Section 15(4): unless the parties agree otherwise, earlier orders or rulings are not invalid merely because the tribunal's composition has changed.
Section 15 - Termination of mandate and substitution of arbitrator
(1) 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.
(2) 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.
(3) 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.
(4) 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.
When does an arbitrator's mandate terminate under Section 15?
Section 15(1) applies in addition to the circumstances already dealt with by Section 13 - Challenge procedure and Section 14 - Failure or impossibility to act.
Under Section 15(1), the mandate terminates where the arbitrator withdraws from office for any reason, or where termination occurs by or pursuant to agreement of the parties.
How is a substitute arbitrator appointed?
Section 15(2) provides a continuity rule for the appointment process. The substitute arbitrator is to be appointed according to the rules that applied to the appointment of the arbitrator who is being replaced.
This means the relevant contractual appointment mechanism, statutory appointment procedure or applicable institutional rules continue to govern the replacement appointment, subject to the Arbitration and Conciliation Act, 1996.
| Issue | Section 15 rule |
|---|---|
| Original mandate terminates | A substitute arbitrator is required where the mandate ends and replacement is necessary. |
| Appointment method | The same rules applicable to the appointment of the replaced arbitrator govern the substitute appointment. |
| Earlier hearings | They may be repeated at the tribunal's discretion unless the parties agree otherwise. |
| Earlier orders or rulings | They remain valid and are not invalid merely because the tribunal composition changes, unless the parties agree otherwise. |
Can hearings held before substitution be repeated?
Yes. Under Section 15(3), unless the parties have agreed otherwise, hearings held before the replacement may be repeated at the discretion of the arbitral tribunal.
The provision does not make repetition automatic. It allows the reconstituted tribunal to determine whether repeating any earlier hearing is appropriate in the circumstances.
Do earlier orders or rulings remain valid after replacement?
Section 15(4) protects continuity of the proceedings. Unless the parties agree otherwise, an order or ruling made before the replacement does not become invalid solely because the composition of the arbitral tribunal has changed.
This rule avoids unnecessary loss of procedural work already completed before the substitute arbitrator joins the tribunal.