Arbitration Tribunal and Arbitrators, Number of Arbitrators

Introduction

After parties decide to submit their dispute to arbitration, Who will give judgement on their dispute ? Of course Arbitrator. How these arbitrators are appointed ? What procedures are followed for appointment of these arbitrators ? If any of the arbitrator is not acting impartially can he be removed ?

Chapter 3, Part 1 of Arbitration and Conciliation act from section 10-15 deals with all of these question.

Arbitration Tribunal

First, Arbitration Tribunal and Arbitrator are same terms. They can be used interchangeably.

Section 2(1)(d) of the act defines as a sole arbitrator or a panel of arbitrators.

Arbitration tribunal is nothing but a adjudicating body deciding upon the disputes submitted to them. They have certain powers and act in quasi judicial capacity.

These tribunals are not courts. Many  a times government establishes a statutory bodies like National Green Tribunal who decides cases related to environment.

Who is Arbitrator ?

In layman terms, Arbitrator is private judge who gives judgement on matter referred to him. (Khap Panchayat uncle is one example!) 

He is person
  • who is chosen by Parties by consent
  • In some case is appointed by Court when parties fail to appoint
  • He does not sit in public
  • He is paid by the parties
  • His jurisdiction, authorities, powers are granted by parties.
  • Capable of entering into contracts
  • Unbiased. Not like biased journalist who takes political sides 
 Parties have autonomy to appoint anybody as an arbitrator. But some procedure is provided in the act and also there is a provision related to number of arbitrators.

How many arbitrators should be appointed ?

If you appoint only one arbitrator 
  • There would be quick decision
  • Less cost
  • However, there is chance of decision could not be of holistic or well thought as there is lack of diversity. That's why we have benches in court. 2 is better than 1, and 3 is better than 2
  • In complex matter where multiple stream of knowledge is required, one arbitrator won't be able to decide award
If you appoint more arbitrators
  • Better decision
  • Decision on complex matter 
  • More cost
  • Co-ordination between multiple arbitrator is difficult and proceeding can take more time 

Section 10 deals with number of arbitrator.it doesn't recommend any number. It states that number of arbitrators should be odd. Because majority can be decided when there are odd number of arbitrators.


Conclusion

Arbitration Act gives flexibility and autonomy to parties to appoint arbitrators. Section 10 deals with number of arbitrators. Arbitrator is appointed by consent of parties. What if there is no consensus reached by parties in appointment of parties ? Who will appoint then ? What is the procedure of appointment of arbitrators. This question will be dealt in this blog





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