Are arbitrator fees capped by the Fourth Schedule?

Not automatically. The Fourth Schedule guides fee fixation, often through court-notified rules or party agreement, rather than acting as a universal cap.

Can an arbitrator’s mandate be ended due to high fees?

Only if there is an inability to act under Section 14. A fee dispute, by itself, usually does not meet that threshold.

What should parties do to avoid fee disputes?

Fix fees in the arbitration clause or at the appointment stage, or rely on court rules framed with reference to the Fourth Schedule.

What role does Section 11(4) play in fees?

It empowers High Courts to frame rules for arbitrator fees with reference to the Fourth Schedule, providing a structured basis for determination.

ENTERTAINMENT CITY LTD V. ASPEK MEDIA PRIVATE LTD

Delhi High Court 2020 2020 SCC OnLine Del 2648 Arbitration Costs 6–8 min read Bench: Not specified

CASE_TITLE: Entertainment City Ltd v Aspek Media (P) Ltd PRIMARY_KEYWORDS: arbitrator fees Fourth Schedule, Section 14, mandate termination SECONDARY_KEYWORDS: Section 11, fee fixation, Delhi High Court, arbitration clause Author: Gulzar Hashmi India Published: 02 Nov 2025

Quick Summary

Core Point: Arbitrator fees are not automatically capped by the Fourth Schedule. In this case, the Delhi High Court refused to end the arbitrator’s mandate on fees alone.

The parties did not fix any fee at appointment. The Court said: Section 14 ends a mandate only when the arbitrator cannot act de jure/de facto. Fee disputes, by themselves, did not justify termination here.

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Issues

Are arbitrator fees bound by the Fourth Schedule fee limits?
Can the arbitrator’s mandate be terminated under Section 14 for charging higher fees?
What role does Section 11(4) play in fee fixation?

Rules

Section 14

Mandate ends if the arbitrator is unable to act (de jure/de facto). Fee disagreement alone is not such inability.

Section 11(4) & Fourth Schedule

Court can frame rules for fees with reference to Fourth Schedule. The Schedule is a guide; not necessarily binding by itself in every case.

Facts (Timeline)

View Timeline Image

14 Aug 2014: Contract with arbitration clause; no fee fixed.

21 Dec 2018: Retired Judge appointed as Sole Arbitrator; appointment order also did not fix fees.

Claims filed: Respondent claimed ₹71,76,11,202 @18% p.a.; Petitioner counter-claimed ₹64,34,20,140.

Award passed: After hearings, an award was made. Petitioner moved under Section 14 to terminate mandate citing fees.

Delhi High Court: Considered whether Fourth Schedule bound the arbitrator and whether mandate could be ended.

Arguments

Petitioner (Entertainment City)

Arbitrator charged excessive fees beyond Fourth Schedule.
Sought termination of mandate under Section 14.

Respondent (Aspek Media)

Fees were not fixed earlier; petitioner never insisted at appointment stage.
Fourth Schedule is a guide, not a strict cap here.

Judgment

The Delhi High Court held that Section 14 addresses an arbitrator’s inability to act. A fee dispute did not, by itself, show such inability. Also, Fourth Schedule rates are not per se binding in this context. Since the petitioner did not press for fee fixation at appointment, it could not later seek termination on that ground.

Result: Mandate not terminated; Fourth Schedule treated as guidance, not a strict ceiling here.

Ratio Decidendi

Section 14 is for inability to act—not for fee disagreements.
Fourth Schedule is a reference framework; not a universal cap in all cases.
Parties should seek fee fixation upfront or via court rules under Section 11(4).

Why It Matters

This case guides drafting and appointments: agree fees early or rely on court-notified rules. Do not expect automatic Fourth Schedule caps or mandate termination for fee disputes.

Key Takeaways

Fix fees upfront—in the clause or at appointment.
Fourth Schedule = guide, not always a cap.
Section 14 is not a shortcut for fee grievances.

Mnemonic + 3-Step Hook

Mnemonic: “Fee First, Fight Later” — Set the fee early; don’t try Section 14 for fee fights.

Agree: Put fee terms at appointment.
Align: Use court rules or Fourth Schedule as reference.
Avoid: Don’t seek mandate termination for mere fee disputes.

IRAC Outline

Issue

Do Fourth Schedule fee limits bind the arbitrator? Can mandate be ended under Section 14 due to fees?

Rule

Section 14 deals with inability to act. Section 11(4) lets courts frame fee rules with Fourth Schedule as a reference.

Application

No fee fixed earlier; petitioner did not insist then. Fee disagreement alone did not prove inability to act.

Conclusion

Fourth Schedule not binding here; mandate not terminated. Petition failed on fees ground.

Glossary

Fourth Schedule: A fee table in the Arbitration Act used by courts as a reference to frame fee rules.
Section 14: Provision to end an arbitrator’s mandate when they are unable to perform their duties.
Mandate Termination: Ending the authority of the arbitrator to act in the case.