Composition of an Arbitral Tribunal under Arbitration And Conciliation Act
📘 Composition of Arbitral Tribunal
🔹 What is an Arbitral Tribunal?
The Arbitral Tribunal is the body or person(s) appointed to decide the dispute submitted for arbitration. It may consist of a sole arbitrator or multiple arbitrators (usually three).
🔹 Legal Provisions Governing Composition
The Arbitration and Conciliation Act, 1996 governs the composition primarily through:
Section 10: Number of arbitrators
Section 11: Appointment of arbitrators
Section 12: Grounds for challenge of arbitrators
Section 13: Termination of mandate of arbitrator
🔹 Number of Arbitrators (Section 10)
Parties’ autonomy to decide the number of arbitrators.
Default rules if no agreement:
Sole arbitrator if number not determined.
Three arbitrators if an even number is specified.
🔹 Appointment of Arbitrators (Section 11)
Parties can agree on a procedure for appointment.
In absence of agreement or failure to appoint:
Court or designated authority intervenes to appoint arbitrator(s).
If tribunal consists of multiple arbitrators:
Each party appoints one arbitrator.
The two appointed arbitrators then appoint the presiding arbitrator (third arbitrator).
If parties fail to appoint arbitrators, the court/designated authority appoints them.
🔹 Qualifications of Arbitrators
Parties may agree on qualifications (e.g., technical expertise, legal knowledge).
If no agreement, appointing authority/court may consider suitability.
Arbitrators must be impartial and independent.
🔹 Challenge and Termination
Section 12: Parties can challenge an arbitrator on grounds of bias, conflict of interest, or lack of independence.
Section 13: Mandate of arbitrator ends on death, resignation, or removal by parties or court.
🔹 Who Can Be an Arbitrator?
Any person capable of resolving disputes.
Usually a lawyer, retired judge, expert in the subject matter, or professional arbitrator.
The parties’ choice governs unless challenged or disqualified.
🔹 Practical Composition
| Composition Type | Description |
|---|---|
| Sole Arbitrator | One arbitrator decides the dispute |
| Three Arbitrators | Party A appoints one arbitrator, Party B appoints one, both appoint a presiding arbitrator |
🔹 Relevant Case Law
1. McDermott International Inc. v. Burn Standard Co. Ltd. [(2006) 11 SCC 181]
Court explained the role of the court in appointment under Section 11 when parties fail to agree.
2. S.B.P. & Co. v. Patel Engineering Ltd. [(2005) 8 SCC 618]
Emphasized that arbitrators must be impartial and independent.
✅ Summary
| Aspect | Description |
|---|---|
| Number | Agreed by parties or default (sole or 3) |
| Appointment | By parties or court/designated authority |
| Qualifications | As agreed or appropriate |
| Challenge | For bias, conflict of interest (Section 12) |
| Termination | Death, resignation, or removal (Section 13) |
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