Section 13 Arbitration Act: Challenge procedure

Section 13 of Arbitration and Conciliation Act, 1996: Challenge procedure

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Subject to sub-section (4), the parties are free to agree on a procedure for challenging an arbitrator.

(2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstances referred to in sub-section (3) of section 12, send a written statement of the reasons for the challenge to the arbitral tribunal.

(3) Unless the arbitrator challenged under sub-section (2) withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.

(4) If a challenge under any procedure agreed upon by the parties or under the procedure under sub-section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award.

(5) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34.

(6) Where an arbitral award is set aside on an application made under sub-section (5), the Court may decide as to whether the arbitrator who is challenged is entitled to any fees.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Arbitration Sec 2(1)(a) Arbitral Tribunal Sec 2(1)(d)

Legal Commentary & Landmark Judgments: Section 13

Section 13 of the Arbitration and Conciliation Act, 1996 establishes the challenge procedure against an arbitrator on grounds of lack of independence, impartiality, or qualifications, requiring the challenge to be made within fifteen days of becoming aware of the circumstances.

Party Autonomy in Challenge Procedure: Parties are free to agree on a procedure for challenging an arbitrator.
Default Fifteen-Day Timeline: Failing agreement, a party must send a written statement of reasons for challenge to the arbitral tribunal within fifteen days after becoming aware of the constitution of the tribunal or circumstances under Section 12(3).
Tribunal Decides on Challenge: Unless the arbitrator withdraws or the other party agrees, the arbitral tribunal itself decides on the challenge.
Continuation of Proceedings upon Rejection: If the challenge is rejected, the tribunal continues proceedings and passes an award; the aggrieved party can challenge the arbitrator's bias only after the final award under Section 34.

Key Landmark Precedents:

HRD Corporation v. GAIL (India) Ltd., (2018) 12 SCC 471: The Supreme Court settled that challenges based on Fifth Schedule doubts must be raised before the arbitrator under Section 13; however, if the arbitrator falls under the Seventh Schedule (Section 12(5)), the arbitrator is de jure disqualified and the court can terminate the mandate under Section 14 directly.
Perkins Eastman Architects DPC v. HSCC (India) Ltd., (2020) 20 SCC 760: The Supreme Court held that a party having an interest in the dispute cannot unilaterally appoint a sole arbitrator; such appointment is void ab initio under Section 12(5).

Courtroom Practice & Strategic Litigation Guidance:

If challenging an arbitrator for justifiable doubts (Fifth Schedule), file the written challenge within 15 days under Section 13; if the ground falls under the Seventh Schedule (ineligibility), move the High Court directly under Section 14 to terminate the mandate.

Section 13: Challenge procedure

Section 13 of Arbitration and Conciliation Act, 1996: Challenge procedure

Legal Commentary & Landmark Judgments: Section 13