March 27, 2023

Termination of arbitration proceedings

This article has been written by Mr. Suraj Singh, a 1st year. LLB (Hons.) student from Allahabad University.


Making of arbitral award and termination of proceedings is completely addressed with in CHAPTER VI of the Arbitration and Conciliation Act, 1996. From sections 28 to 33 it’s all about “making of arbitral award and termination of proceedings”. This research paper won’t solely justify the important bare provisions however will also lay specific emphasis on Section 32. This section deals with the “Termination of proceedings.

The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal under sub-section (2).

(2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where—

(a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute,

(b) the parties agree on the termination of the proceedings, or

(3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings.


The role of an arbitrator is to resolve disputes that the parties have in agreement to submit to arbitration. The decisions of the arbitrator require a document subject to certain formalities, and referred to as the arbitral award. The content and form of an arbitral award, and also the discretion enjoyed by arbitrators in creating an award can essentially vary according to the procedural law applicable to the arbitral procedure, the powers presented by the parties upon the arbitrator under the applicable arbitration agreement, and also the specific sort of arbitration used.

Arbitral Award under Arbitration and Conciliation Act, 1996

According to the definition given under Section 2© it’s clear that the 1996 Act doesn’t provide a concrete definition of Arbitral awards. It solely affirms that arbitral awards include interim awards too. However, the ultimate call given by the arbitral tribunal [as per Section 2(d)] is the arbitral award.

Termination of Arbitral Proceedings under Arbitration and Conciliation Act, 1996

Section 32 of the Arbitrational and Conciliation Act, 1996 is totally coherent with Article 32 of UNCITRAL Model Law. According to Section 32(1) of the Act termination of Arbitral proceedings takes place once the final award declared by the arbitral tribunal. The other three grounds of termination of arbitral proceedings are given under Sub-section 2 of Section 32.

To terminate the arbitration proceedings arbitral tribunal shall issue an order:

To terminate the arbitration proceedings arbitral tribunal shall issue an order:

The parties themselves agree to terminate the proceedings.

If the arbitral tribunal finds that the continuation of the proceedings is either unnecessary or impossible for any other reason.

The plaintiff withdraws their claim.  It can also be terminated if the respondent objects to the arbitral award. Looking at which the arbitral tribunal come to a conclusion that it has a legitimate interest in obtaining a final settlement.


The termination of proceedings procedure and making an arbitral award laid down is pretty straightforward and simple. The Supreme Court has sometimes come up with suggested amendments and necessary interpretations. It’s interesting to note that the termination of arbitral proceedings is different under Section 32 and Section 25. The conclusiveness of award marks the termination of proceedings under Arbitration and Conciliation Act under Section 32 along with three other grounds. Not several radical judgments are passed with regard to the above subject however Sai Babu v. M/S Clariya Steels Private Limited holds good law.


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