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Virtual Legal Assistant (.)     29 December 2021


How can an arbitration be terminated practically? 


 5 Replies

Shubham Bhardwaj (Advocate)     29 December 2021

Dear Mr Gupta, 

I am not able to understand your query. However, please note that once an Arbitration starts it cannot be termianted unilaterally. The mandate of the Arbitrator ends only if he is for any reason unable to perform his duty as an arbitrator. An arbitration may also terminate where parties terminate his/their mandate. But in this case a substitute will have to be appointed and the Arbitration will begin again. 

Once an Arbitration starts, there will be an award (decree). 



Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Discliamer:- Opinion is only for guidance. 

G.L.N. Prasad (Retired employee.)     29 December 2021

Once the Arbitration is admitted, it can be closed only after the logical conclusion and final orders.

Dr J C Vashista (Advocate)     30 December 2021

I agree with experts, arbitration proceed cannot be terminated till final award.

Virtual Legal Assistant (.)     30 December 2021

Thank you for the speedy response experts.

An arbitration can be closed only after the final orders has been passed. But can the parties terminate the agreement if both the parties consent to it?
What is the interpretation of Section 32(2)(b) & Section 15(1)(b) of the Arbitration Act, the only remedy available to the parties to terminate the arbitration?

Shubham Bhardwaj (Advocate)     30 December 2021

Dear Mr Gupta, 

There is a difference between termination of agreement and termination of arbitration mandate. Parties are free to terminate the mandate of the Arbitrator however if the source of dispute remains, they will again have to contitute the Arbitral Tribunal for resolution of dispute. No court will take cognizance of a suit in case where there is an arbitration clause involved. 

However, in case of termination of agreement, the Arbitration clause goes with the agreement. Once the Arbitration clause goes, there can be no arbitration. However this situation would be beneficial for the parties only when they have resolved their issues amicably. 

I hope you get the point. 



Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Disclaimer:- Opinion is only for guidance.

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