X, an eminent arbitration practitioner having substantial knowledge and experience in institutional arbitration, both domestic and international, has been nominated as a member of the Arbitration Council of India by the

CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2025
X, an eminent arbitration practitioner having substantial knowledge and experience in institutional arbitration, both domestic and international, has been nominated as a member of the Arbitration Council of India by the Central Government. Subsequently, it was found that X has acquired such financial interest as is likely to affect prejudicially his functions as a Member and hence the Central Government removed X and Y was appointed in his place. Advice X, when a member of the council can be removed.

Answer & Explanation:

Removal of Member Section 43G(1) of Arbitration and Conciliation Act, 1996 provides that the Central Government may, remove a Member from his office if he (a) is an un-discharged insolvent; or (b) has engaged at any time (except Part-time Member), during his term of office, in any paid employment; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest; or (f) has become physically or mentally incapable of acting as a Member. Further according to Section 43G(2) notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed. In view of the above provision, it may be said that Mr. X cannot be removed without referring the matter to Supreme Court.

Topics: Arbitration and Conciliation Act, 1996

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