Qualification for Arbitrator and Arbitration Tribunal (Section 12 of Arbitration Act)

Nationality Doesn't matter!

Arbitrator could be of any nationality. This is important in case of international arbitration, wherein there are chances of bias if arbitrator of any nationality of parties is selected. If Nirav and Andrew have dispute, if Indian arbitrator is chosen there could be bias. So some arbitrator from Rwanda or Uganda would make whole arbitration process bit fair.

Capacity to contract

Arbitrator should have capacity to contract. Arbitration is private adjudication and arbitrator have some duties as well as obligation. Therefore it's necessary that he is able to carry duties and obligation and hence must be capable to contract.

Lack of Bias

Arbitrator shouldn't have prejudices towards any party. Repercussion of this is huge, as arbitral award could be challenged if it proved that arbitrator was biased.

Section 12-Grounds for challenge

When person is approached by parties to act as an arbitrator, section 12 provides that such person should disclose in writing few things.

  • Existence of past or present, direct or indirect relationship with any parties, or if his interests are related to subject matter in dispute. This relation could be financial, professional, business related etc
  • Any other things, because of which there are chances that he cannot devote sufficient time for this dispute, or of chances that he may not be able to adjudicate on matter withing 12 months
Bias could be in any particular manner, for example money related, business related. 

Supreme court in Ranjit Thakur V Union of India, said that if it appears to any prudent person of bias given the information and dispute, then this could be ground to challenge the appointment of an arbitrator.

Independence and Impartiality

Arbitrator should be not be favoring one party. Similarly he should exercise independent discretion on his own.

Parties can proceed with appointment of partial arbitrator. But later they cannot raise an objection on this ground. However challenge can be raised on new ground.

Here are examples of bias, dependence and partiality

  1. Arbitrator is employer, creditor or adviser of any party
  2. Arbitrator is lawyer of any of the parties.
  3. Arbitrator is relatives of any of the parties


In such cases appointment can be challenged.



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