IsraelLawWhat happens in Israeli arbitration if one party refuses to participate or goes silent?
Section 15 of the Arbitration Law 5728-1968 sets out the Israeli framework for handling a non-participating party. The core principle is that arbitration can proceed if the absent party had notice of the proceedings and an adequate opportunity to participate. The tribunal cannot simply assume consent from silence — it must take reasonable steps to confirm the party was properly served and given the chance to respond. Once those conditions are met, the arbitrator can hear evidence from the participating party, examine any documentary record, and issue a reasoned award. Israeli courts have upheld such ex parte awards where the procedural steps were properly documented and followed.
An absent party will often try to challenge the resulting award at the enforcement stage, arguing that they were not properly notified or were denied the opportunity to present their case. These grounds appear in Sections 24(3) and 24(4) of the Arbitration Law and are the most common bases for challenging enforcement of default awards. The arbitrator must therefore keep meticulous records throughout: copies of all notices sent, records of delivery, and documentation of the absent party's failure to respond. Parties facing a counterpart who has gone silent should document all communications, apply formally to the arbitrator for a ruling that the defaulting party is in default, and proceed step by step. Our full guide to the arbitration process in Israel covers procedure from appointment to award enforcement in detail.
- Governing law: Section 15 (default proceedings), Sections 24(3)–(4) (challenge grounds), Arbitration Law 5728-1968 (Hok HaBorrerut)
- Competent authority: The arbitral tribunal for procedural rulings; District Court (Beit Mishpat Mechozi) for enforcement and challenge applications
- Notice requirement: Written notice of all hearing dates by a traceable method — registered post, courier, or email where the arbitration agreement specifically permits it
- Enforcement timeline: An Israeli arbitral award can be filed for enforcement immediately upon issue; a challenge must be brought within 45 days of the award under Section 27 of the Law
- Key risk: If the absent party later proves they were never notified, the court will set aside or refuse enforcement of the award — use traceable service methods and retain proof
From the full guide: The Arbitration Process in Israel: From Clause to Award
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