Is there a statutory deadline for an Israeli arbitrator to issue an award?
Section 22 of the Arbitration Law 5728-1968 empowers the arbitrator to regulate proceedings and fix timetables, but the statute itself imposes no maximum period for completing an arbitration or delivering the award. The concept of "reasonable time" depends on the specific circumstances: a simple two-party commercial dispute with a single straightforward issue may be expected to yield an award within months, whereas a complex construction or technology dispute with multiple witnesses and expert evidence may legitimately take several years. Where the parties have expressly agreed on a deadline — such as "the award shall be issued within 12 months of the arbitrator's appointment" — the arbitrator is contractually bound by that term. Failure to meet an agreed deadline without the parties' consent to an extension could constitute a breach of the arbitration agreement and expose the arbitrator to an application for removal. For international commercial arbitrations seated in Israel under the ICA Law 2024, Article 27 directs the tribunal to proceed without unnecessary delay, but similarly sets no fixed number.
Ad hoc domestic arbitrations under the Arbitration Law 1968 are particularly susceptible to delay because there is no institutional body providing oversight or enforcement. When parties agree on an arbitrator privately — without using an institution such as the Israeli Center for Commercial Arbitration (ICCA) — there is no mechanism to push the arbitrator toward timely delivery other than the threat of a Section 11 removal application. ICCA and other Israeli arbitration institutions fill this gap through their own published rules, which typically require the award within 6 months of the final hearing, extendable by the institution's secretariat on reasoned request. Drafting a specific timeframe directly into the original arbitration clause — for example, "the award shall be delivered no later than nine months from the arbitrator's formal appointment" — is the most practical safeguard available to parties who want to avoid indefinite delay. A Section 11 removal application itself takes several months to process through the District Court, so it is a remedy of last resort rather than a quick fix.
- Governing law: Sections 11 and 22, Arbitration Law 5728-1968; Article 27, ICA Law 2024 (international arbitrations)
- Default rule: "reasonable time" — no fixed statutory deadline in days or months
- ICCA institutional rule: generally requires the award within 6 months of the last hearing, extendable by the secretariat
- Removal mechanism: Section 11 application to the President of the District Court — the process itself takes approximately 3–6 months
- Best practice: include a specific deadline in the arbitration agreement, e.g., "award within 9 months of arbitrator's appointment"
From the full guide: The Arbitration Process in Israel: A Step-by-Step Guide
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