COMPOSITION

OF ARBITRAL
TRIBUNAL
 Group 4
 Aditya Jain –A322151
 Ananya Singh-A322151
 Junaid khan-A3221519214
 Sukirti Jain-A322151
 Shivranjini Sinha-A322151
 What is the Procedure for appointment of
arbitrators?
 The procedure and appointment of arbitrators under the arbitral tribunal are specified under Section 11 of the
Arbitration and Conciliation Act. It states the following:
1. Nationality- The parties to the dispute may, on the agreement, appoint an arbitrator belonging to any nationality.
2. Appointment by Parties- The procedure to appoint one or more arbitrators can be decided by the parties. If the
parties fail to do so, they may individually appoint an arbitrator each, and the two arbitrators, mutually decide
the third one.
3. Appointment by Court- if the parties do not appoint an arbitrator within 30 days from the receipt of the
request, the Supreme Court, the High Court, or any other official designated by the Court may appoint an
arbitrator.
4. Payment of fees- the High Court has the authority to frame rules concerning the determination of fees of the
arbitral tribunal and the manner of its payment.
 The Rules of Arbitration also provide the manner of the appointment of a sole arbitrator or
three arbitrators under Rule 23. According to this rule, on receipt of the application, the
Registrar of the Arbitration Committee may ask the parties to the dispute to select an arbitrator
from among the Panel of Arbitrators within 30 days. In case of failure, the Registrar himself
appoints a sole arbitrator to resolve the dispute between parties. Similarly, the Registrar can
also appoint three arbitrators if the parties to the dispute do not arrive at an agreement.
 In Oriental Insurance Company v M/S Narbheram Power and Steel Pvt,[4] it was held that the
arbitration clause under an agreement is to be strictly interpreted. It expresses the intention of
the parties to appoint an arbitrator for the settlement of any dispute. This clause cannot be
waived off in normal circumstances.
 What is an Arbitration Tribunal?

 Arbitral tribunals refer to panels of one or more arbitrators responsible for

adjudicating disputes between parties through arbitration.

 According to Rule 2 of ‘Rules of Arbitration’, Arbitral Tribunal is defined as “an

arbitrator or arbitrators appointed for determining a particular dispute or difference”

 Section 2(d) of the Arbitration and Conciliation Act, 1996 also defines an arbitral
tribunal as a sole arbitrator or panel of arbitrators.
 Composition of an Arbitration Tribunal

 Chapter III of the Arbitration and Conciliation Act, 1996, lays down the provisions for the Composition of an Arbitral Tribunal. 

 Section 10: Number of Arbitrators

1. The parties are free to determine the number of arbitrators, provided that such number shall not be an even number.

2. Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole arbitrator.

 Case Law: Narayan Prasad Lohia VS. Nikunj Kumar Lohia(2002)

 Rule 22 of the Rules of Arbitration provides that if the value of the claim made under arbitration is One Crore or less, a single arbitrator
can resolve the dispute if the parties agree to it. In cases where the claim to the dispute exceeds one Crore, the arbitral tribunal shall be
composed of three arbitrators with the agreement of the parties.
 What are the grounds for challenging the
appointment of arbitrators and its procedure
 When a person is nominated as an arbitrator, he is required to disclose his past or present
connection to either party or parties, whether direct or indirect. Also, he shall disclose if he has
a financial, business, professional or any other interest in any of the parties or in the subject
matter of the dispute, which may prevent him from adjudicating in an impartial manner.
 Therefore, as per Section12 of the Act, either party to the dispute may challenge the
appointment of an arbitrator on the following grounds:
 If there is a sufficient doubt that the arbitrator may act in a partial or biased manner.
 If the nominated arbitrator does not possess the qualifications required by the parties to the
dispute.
 PROCEDURE
 The appointment of an arbitrator can be challenged in accordance with the procedure
mentioned in Section 13 of the Arbitration and Conciliation Act, 1996. Either party can
challenge the appointment within 15 days after receiving the knowledge of the constitution
of the arbitral tribunal or after the knowledge of circumstances mentioned above. The
authority to decide on the challenge is vested in the hands of the arbitral tribunal.

 In Antrix Corp. Ltd. v Devas Multimedia Pvt. Ltd, the Court held that if any party to the
dispute disagrees or is dissatisfied with the composition of the arbitral tribunal, it can
approach the Court to challenge the appointment of the arbitrator by way of application.
 How can an arbitrator be terminated?
 not only the appointment of the arbitrator can be challenged but also his mandate can be terminated under
Section 14 and 15 of the Act in the following cases:
 If the arbitrator is unable to carry out his functions in an effective manner or there is an undue delay in the
performance of his duties.
 If the arbitrator himself withdraws from his office or the parties agree to his termination.
 Rule 27 of the Rules of Arbitration also states that an arbitrator can be terminated from his mandate on account
of his resignation or death, if he is negligent in performing his duties or fails to act in an expeditious manner,
and does not declare the arbitral award within a prescribed time.
 In National Highways Authority of India vs Gammon Engineers and Contract , the Delhi High Court held that
the Arbitral Tribunal is bound by the Arbitration agreement between parties. The Arbitration agreement cannot
be rewritten and neither can the tribunal accept an appointment in part.
 Substitution of an arbitrator
 If an arbitrator is terminated from his mandate, another arbitrator may be appointed
as a substitute by following the appointment procedure. In such a case, the arbitral
hearings can be repeated at the discretion of the arbitral tribunal. The provisions
related to the substitution of an arbitrator are mentioned under Section 15 of the
Arbitration and Conciliation Act, 1996.
 Conclusion
 The Indian Judiciary has recommended time and again that parties should take up arbitration as a
dispute settlement mechanism to reduce the burden on the courts and for a speedy resolution of
disputes. Therefore, several amendments have been proposed in the Arbitration and Conciliation Act,
1996. Sections 10-15 of this Act and Rules 22-27 of the Rules of Arbitration, lays down provisions for
the composition of an Arbitral Tribunal. This is of utmost concern in the adoption of arbitration as a
mechanism for dispute settlement. It is important for the parties to choose the right arbitrator or
arbitrators that constitute the arbitral tribunal so that the award delivered by the tribunal is fair and just
and free of any discrimination or biasness. It also ensures that the dispute is resolved in an effective
and speedy manner.