Arbitration
& Conciliation Act, 1996
CHAPTER III: COMPOSITION
OF ARBITRAL TRIBUNAL
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.
11. Appointment of arbitrators
(1)
A person of any nationality may be an arbitrator, unless otherwise agreed
the parties.
(2)
Subject to sub-section (6) the parties are free to agree on a procedure
for appointing the arbitrator or arbitrators.
(3)
Failing any agreement referred to in sub-section (2), in a arbitration
with three arbitrator, each party shall appoint one arbitrator, and the
two appointed arbitrators shall appoint the third arbitrator who shall
act as the presiding arbitrator.
(4)
If the appointment procedure in sub-section (3) applies and-
(a)
a party fails to appoint an arbitrator within thirty days from the receipt
or a request to do so from the other party; or
(b)
the two appointed arbitrators fail to agree on the third arbitrator within
thirty days from the date of their appointment,
the
appointment shall be made, upon request to a party, by the Chief Justice
or any person or institution designated by him.
(5)
Failing any agreement referred to in sub-section (2), in an arbitration
with a sole arbitrator, if the parties fail to agree on the arbitrator
within thirty days from receipt of a request by one party from the other
party to so agree the appointment shall be made, upon request of a party,
by the Chief Justice or any person or institution designated by him.
(6)
Where, under an appointment procedure agreed upon by the parties-
(a)
a party fails to act as required under that procedure; or
(b)
the parties, or the two appointed arbitrators, fail to reach an agreement
expected of them under that procedure; or
(c)
a person, including an institution, fails to perform any function entrusted
to him or it under that procedure,
a party
may request the Chief Justice or any person or institution designated
by him to take a necessary measure, unless the agreement on the appointment
procedure provides other means for securing the appointment.
(7)
A decision on a matter entrusted by sub-section (4) or sub-section (5)
or sub-section (6) to the Chief Justice or the person or institution designated
by him is final.
(8)
The Chief Justice or the person or institution designated by him, in appointing
an arbitrator, shall have due regard to-
(a)
any qualifications required of the arbitrator by the agreement of the
parties; and
(b)
other considerations as are likely to secure the appointment of an independent
and impartial arbitrator.
(9)
In the case of appointment of sole or third arbitrator in an international
commercial arbitration, the Chief Justice of India or the person or institution
designated by him may appoint an arbitrator of a nationality other than
the nationalities of the parties where the parties belong to different
nationalities.
(10)
The Chief Justice may make such scheme as he may deem appropriate for
dealing with matters entrusted by sub-section (4) or sub-section (5) or
sub-section (6) to him.
(11)
Where more than one request has been made under sub-section (4) or sub-section
(5) or sub-section (6) to the Chief Justices of different High Courts
or their designates, the Chief Justice or his designate to whom the request
has been first made under the relevant sub-section shall alone be competent
to decide on the request.
(12)(a)
Where the matters referred to in sub-section (4), (5), (6), (7), (8) and
(10) arise in an international commercial arbitration, the reference to
"Chief Justice" in those sub-sections shall be construed as
a reference to the "Chief Justice of India".
(b)
Where the matters referred to in sub-section (4), (5), (6), (7), (8) and
(10) arise in any other arbitration, the reference to "Chief Justice"
in those sub-sections shall be construed as a reference to the Chief Justice
of the High Court within whose local limits the principal civil court
referred to in clause (e) of sub-section (1) of section 2 is situate and,
where the High Court itself is the court referred to in that clause, to
the Chief Justice of that High Court.
12. Grounds for challenge
(1)
When a person is approached in connection with his possible appointment
as an arbitrator, he shall disclose in writing any circumstances likely
to give rise to justifiable doubts as to his independence or impartiality.
(2)
An arbitrator, from the time of his appointment and throughout the arbitral
proceedings, shall, without delay, disclose to the parties in writing
any circumstances referred to in sub-section (1) unless they have already
been informed of them by him.
(3)
An arbitrator may be challenged only if-
(a)
circumstances exist that give rise to justifiable doubts as to his independence
or impartiality, or
(b)
he does not possess the qualifications agreed to by the parties.
(4)
A party may challenge an arbitrator appointed by him, or in whose appointment
he has participated, only for reasons of which he becomes aware after
the appointment has been made.
13. Challenge procedure
(1)
Subject to sub-section (4), the parties are free to agree on a procedure
for challenging an arbitrator.
(2)
Failing any agreement referred to in sub-section (1), a party who intends
to challenge an arbitrator shall, within fifteen days after becoming aware
of the constitution of the arbitral tribunal or after becoming aware of
any circumstances referred to in sub-section (3) of section 12, send a
written statement of the reason for the challenge to the arbitral tribunal.
(3)
Unless the arbitrator challenged under sub-section (2) withdraws from
his office or the other party agrees to the challenge, the arbitral tribunal
shall decide on the challenge.
(4)
If a challenge under any procedure agreed upon by the parties or under
the procedure under sub-section (2) is not successful, the arbitral tribunal
shall continue the arbitral proceedings and make an arbitral award.
(5)
Where an arbitral award is made under sub-section (4), the party challenging
the arbitrator may make an application for setting aside such an arbitral
award in accordance with section 34.
(6)
Where an arbitral award is set aside on an application made under sub-section
(5), the court may decide as to whether the arbitrator who is challenged
is entitled to any fees.
14. Failure or impossibility to act
(1)
The mandate of an arbitrator shall terminate if-
(a)
he becomes de jure or de facto unable to perform his functions or for
other reasons fails to act without undue delay; and
(b)
he withdraws from his office or the parties agree to the termination of
his mandate.
(2)
If a controversy remains concerning any of the grounds referred to in
clause (a) of sub-section (1), a party may, unless otherwise agreed by
the parties, apply to the court to decide on the termination of the mandate.
(3)
If, under this section or sub-section (3) of section 13, an arbitrator
withdraws from his office or a party agrees to the termination of the
mandate of an arbitrator, it shall not imply acceptance of the validity
of any ground referred to in this section or sub-section (3) of section
12.
15. Termination of mandate and substitution of arbitrator
(1)
In addition to the circumstances referred to in section 13 or section
14, the mandate of an arbitrator shall terminate -
(a)
where he withdraws from office for any reason; or
(b)
by or pursuant to agreement of the parties.
(2)
Where the mandate of an arbitrator terminates, as substitute arbitrator
shall be appointed according to the rules that were applicable to the
appointment of the arbitrator being replaced.
(3)
Unless otherwise agreed by the parties, where an arbitrator is replaced
under sub-section (2), any hearings previously held may be repeated at
the discretion of the arbitral tribunal.
(4)
Unless otherwise agreed by the parties, an order or ruling of the arbitral
tribunal made prior to the replacement of an arbitrator under this section
shall not be invalid solely because there has been a change in the composition
of the arbitral tribunal.
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