I. Procedure for Appointment of Arbitrator
1. Parties’ Agreement (Section 11(2)):
- Parties are free to decide the procedure for appointing arbitrators.
- It can be a single arbitrator or a panel of three.
- In case of three: each party appoints one arbitrator; the two then appoint the third (presiding arbitrator).
2. Default Procedure (Section 11(4) to 11(6)):
If there’s no agreement or failure in appointment:
- A party may request the High Court (for domestic arbitration) or Supreme Court (for international arbitration) to appoint an arbitrator.
- The process is expected to be time-bound to avoid delays.
3. Qualifications and Disclosures (Section 12):
- The arbitrator must disclose any circumstances likely to give rise to doubts about their independence or impartiality.
- Schedule V and Schedule VII specify grounds for disqualification.
4. Time Limit (As per 2015 Amendment):
- The appointment process should be completed within 30 days of notice/request.
II. Procedure for Removal of Arbitrator
1. Grounds for Challenge (Section 12(3)):
An arbitrator may be challenged if:
- Circumstances give rise to justifiable doubts about their impartiality or independence.
- The arbitrator does not possess the qualifications agreed to by the parties.
2. Challenge Procedure (Section 13):
- A party must send a written statement of reasons to challenge the arbitrator.
- If the arbitrator refuses to withdraw and the other party disagrees, the arbitral tribunal continues the proceedings.
- A party can challenge the arbitrator after the award is passed under Section 34 (to set aside the award).
3. Termination of Mandate (Section 14):
- The mandate of the arbitrator may be terminated if they are de jure or de facto unable to perform their functions or fail to act without undue delay.
- A substitute arbitrator is then appointed under Section 15.
Summary Table — Memory Code: “APPOINT”
| Code | Meaning |
|---|---|
| A | Agreement of Parties (Section 11(2)) |
| P | Petition to Court (High Court or Supreme Court) if default (Sec 11) |
| P | Presiding Arbitrator in case of 3 arbitrators |
| O | Objection through challenge (Section 13) |
| I | Impartiality and Independence (Section 12) |
| N | Non-performance → Termination (Section 14) |
| T | Time-bound Appointment (30 days rule) |