Arbitration is a technique for resolving disputes legally. The parties in a conflict are referred to as neutral parties to conclude, and when a judgement is reached, it’s called an arbitral award. It is a very effective method of alternative dispute resolution.
The Arbitration and Conciliation Act of 1996 governs arbitration in India. The Act delineates the laws that govern the implementation of foreign awards, international arbitration, and domestic arbitration in India. Arbitration is considered a cost-efficient resolution without delay, as in regular court procedures.
The arbitrator is the individual designated as the impartial third party. The arbitrator adheres to the procedure selected by both parties. Appointment of the arbitrator is dealt with under Sections 10 and 11 of the Act. Section 10 talks about the number of arbitrators who can be appointed. The law says that the parties can determine the number of arbitrators. The essential rule in this process is that the number of arbitrators shall be manageable. If the parties fail to determine the number of arbitrator/s, the arbitral tribunal shall consist of a sole arbitrator. Section 11 of the Act deals specifically with the appointment of the arbitrators. It is the parties’ discretion to agree on a procedure for appointing the arbitrator/s. If they do not agree to a specific procedure to determine the arbitrators, each party to the dispute shall appoint one arbitrator, which will make two of them. These two appointed arbitrators shall choose another arbitrator, as the arbitrators cannot be in even numbers, according to Section 10. This third arbitrator shall act as the presiding arbitrator.
Suppose the parties cannot reach a consensus on the arbitrator within 30 days in an arbitration proceeding with a sole arbitrator. In that case, the court or a designated individual will appoint the arbitrator. The arbitrators must meet the qualifications outlined in the arbitration agreement and additional criteria, including being over 18 and not being disqualified by law.
Section 26 of the Act allows an expert to provide expert testimony on the matters before the arbitral tribunal. The tribunal is authorised to appoint multiple experts to resolve the dispute. The grounds for challenge are discussed in Section 12 of the Act, which encompasses any direct or indirect relationship with the parties or an interest in the subject matter of the dispute if there is any apprehension regarding his impartiality or independence.
Sections 15, 14, and 12 of the Act address the removal of the arbitrator. It discusses the termination of the mandate and the replacement of the arbitrator. The mandate of an arbitrator will expire upon the arbitrator’s resignation from the office or upon the parties’ agreement. The failure or impossibility to act is the subject of Section 14 of the act. The grounds for challenging the arbitrator are discussed in Section 12(3).
In Oyo Hotels and House Pvt. Ltd. v. Rajan Tewari and Anr, the Delhi High Court held that if neither party confirms the arbitrator, an application u/s 11 can be maintained.
The Arbitration and Conciliation Act 1996 establishes regulations that guarantee a fair process of law. The removal of arbitrators and the capacity to do so are as critical an aspect of arbitration as the other stages. This allows the parties in dispute to have a more significant say in the resolution and ensures that the proceedings are as fair as possible.
Done By: Anoushka Samyuktha, B.A LL.B (Hons), LLM (Criminal Law), Junior Legal Consultant
For Origin Law Labs
