Key Concepts

1. Composition of an Arbitral Tribunal

The Arbitration and Conciliation Act, 1996 (India) outlines the structure and composition of an arbitral tribunal as follows:

1. Number of Arbitrators
   • Parties are free to decide the number of arbitrators.
   • If the parties do not specify the number, the default is a sole arbitrator (Section 10).
   • The number must not be an even number, ensuring no tie in decision-making.
2. Qualifications of Arbitrators
   • Parties can agree on specific qualifications or expertise required of arbitrators.
   • Arbitrators must be independent and impartial, adhering to ethical guidelines (Fifth and Seventh Schedules of the Act).
3. Role of Institutions
   • For institutional arbitration, the rules of the institution (e.g., ICC, SIAC) govern the tribunal’s composition.

2. Formation of an Arbitral Tribunal

The process of constituting an arbitral tribunal is detailed in Sections 11-15 of the Arbitration and Conciliation Act.

1. Appointment of Arbitrators (Section 11)
   • Party Agreement: The parties decide the appointment procedure.
   • Default Appointment:
     • For a sole arbitrator: Parties must mutually agree on the arbitrator.
     • For a panel: Each party appoints one arbitrator, and the two arbitrators appoint the third (presiding arbitrator).
   • If parties fail to appoint arbitrators, a court or designated institution steps in to make the appointment.
2. Eligibility and Challenges (Section 12-13)
   • Arbitrators must disclose any circumstances that may raise doubts about their independence or impartiality.
   • Parties can challenge an arbitrator’s appointment based on lack of qualification, bias, or other valid grounds listed in the Act.
3. Replacement of Arbitrators (Section 14-15)
   • If an arbitrator is unable to perform due to incapacity, resignation, or removal (e.g., proven bias), a substitute arbitrator is appointed following the original appointment procedure.
4. Multiplicity of Tribunals
   • For multi-party arbitrations, the tribunal’s composition is adapted to ensure balanced representation.

Key Features of the Tribunal’s Composition Under the Act

1. Neutrality: The tribunal must be impartial, ensuring fairness to all parties.
2. Flexibility: Parties have autonomy in determining the structure and qualifications of the tribunal.
3. Efficiency: The Act provides mechanisms for swift constitution, such as court intervention to prevent delays.
4. Adaptability: Allows for institutional or ad hoc arbitration, tailoring tribunal formation to the specific dispute.

Key Terms

1. Arbitral Tribunal: A panel of one or more arbitrators appointed to resolve disputes under the Arbitration and Conciliation Act.
2. Sole Arbitrator: A single arbitrator appointed to handle the arbitration proceedings.
3. Panel of Arbitrators: A group, typically consisting of three arbitrators, where each party appoints one, and the two select a presiding arbitrator.
4. Section 10: Provision that governs the number of arbitrators, allowing parties to agree, with a default of one if unspecified.
5. Section 11: Rules for the appointment of arbitrators, including court intervention in case of disagreement.
6. Section 12: Requirement for arbitrators to disclose potential conflicts of interest, ensuring impartiality.
7. Section 13: Procedures for challenging the appointment of an arbitrator.
8. Section 14: Conditions under which an arbitrator’s mandate is terminated, such as inability to perform.
9. Section 15: Replacement of an arbitrator if their mandate is terminated or they resign.
10. Impartiality: The requirement for arbitrators to act without bias.
11. Independence: The obligation for arbitrators to avoid conflicts of interest.
12. Default Appointment: A process where courts or institutions appoint arbitrators if parties fail to agree.
13. Party Autonomy: The principle allowing parties to decide the composition and rules governing the tribunal.
14. Institutional Arbitration: Arbitration conducted under the auspices of an organization with predefined rules.
15. Ad Hoc Arbitration: Arbitration conducted independently without institutional oversight.

Review Questions

Conceptual Understanding

1. What is an arbitral tribunal, and how is it constituted under the Arbitration and Conciliation Act, 1996?
2. Describe the role of a sole arbitrator versus a panel of arbitrators in arbitration proceedings.

Appointment Process

1. How are arbitrators appointed when the parties fail to agree on the selection?
2. Explain the difference between institutional arbitration and ad hoc arbitration in tribunal formation.

Legal Framework

1. What is the significance of Section 10 in determining the number of arbitrators?
2. Discuss the key provisions of Section 11 regarding the appointment of arbitrators.

Impartiality and Challenges

1. What is required of arbitrators under Section 12 to ensure independence and impartiality?
2. Under what circumstances can an arbitrator be challenged or removed as per Sections 13 and 14?

Practical Aspects

1. How does the principle of party autonomy influence the composition of an arbitral tribunal?
2. What happens if an arbitrator’s mandate is terminated or they resign during the arbitration process (Section 15)?