However if that fails and an application is filed in court for appointment, the Chief Justice or the person or institution designated by him, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties. 34 (2) (a) (v)) 28), Author Bio: This is clear from clause (b) of Sec. Appointment of Presiding Officer (Umpire). (12) Power to seek Court Assistance in taking Time Line for Appointment of Arbitrator by Director of KLRCA. An arbitrator is appointed under the following means -, (1) Appointment by Parties Qualifications of an Arbitrator- Selection of arbitrators under UNCITRAL. . The procedure in relation to appointment of arbitrator (s) is provided under Section 11 of the Act. 11 challenges were made once the arbitrator had been appointed, with the LCIA continuing with the appointment in seven of those cases. (2) Impartiality The Author may be reached via anil [at] Satyagraha [dot] com, Category The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties. 30) A person of any nationality may be an arbitrator, unless otherwise agreed by the parties. The parties are free to agree on a different procedure for arbitrator appointments, and it is relatively common for the chairperson to be appointed by the parties jointly or by the party-appointed arbitrators. There is no substance in this contention raised by the learned counsel for the Respondent that the matter is not required to be referred to the Arbitrator.. Where the parties fail to appoint arbitrator within 30 days from the request of the party, the Supreme Court or the High Court or person designated by them can appoint the sole arbitrator upon the request of the party. What are the different classifications of law? In case either the parties or the two arbitrators fail to appoint an arbitrator within 30 days, then upon . However, the right to apply does not exist unless there is a clear denial of that right by the respondent. In case of appointment of a sole or third arbitrator in international commercial arbitration, the appointing authority is the Chief Justice of India or a person or institution designated by him. Many predispute arbitration agreements require a panel of three neutral arbitrators. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties. The period of limitation of arbitration starts from the date on which, no cause of action would have accrued, just like the case of actions the claim is not brought after the expiration of a specified number of years from the date on which the cause of action accrued. In the absence of any contrary provision in the arbitration agreement, the presiding arbitrator can adjudicate the whole case if the arbitrators disagree on any particular point, as held in Probodh v. Union of India. Further, section 10(2) states that in case the parties fail to decide the number of arbitrators in accordance with section 10(1), the arbitral tribunal shall consist only of a sole arbitrator. Section 11 (3) provides that failing any agreement . One of the first cases to deal with this question was the matter of Konkan Railways Corporation Ltd. v. Rani Construction Pvt. This chapter discusses an arbitral tribunal's different powers, duties, and jurisdiction during arbitration proceedings. The petitioner made an application for appointment of the third arbitrator by the court under s.11 of the Act. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom. III. 16 to rule on its own jurisdiction including ruling on any objection with respect to the existence or validity of the arbitration agreement and for that purpose, the arbitration clause which forms part of the contract shall be treated as an agreement independent of the other terms of the contract and any decision by the arbitral tribunal that the contract isnullandvoidshall not entailipso jureaffect the validity of the arbitration clause. Retrieved from. Section 12 (3) of the Arbitration and Conciliation (Amendment) Act, 2015 states the circumstances in which an arbitrator may be challenged. We are team members of Law Times Journal. (5) Determination of Rules of Procedure (Sec. 11 (6) (c) of the Act to say that the matter is not to be referred to arbitration at all. Lohia vs. Nikunj Kumar Lohia [AIR 2002 SC 1139], [4]Malaysian Airlines Systems vs. Stic travels Ltd. [(2011) 1 CompLJ 217 (SC)], [5]Iron and Steel Co. Ltd. vs. Tiwari Road Lines [(2007) 5 SCC 703], [6]Union of India vs. D.N. Panel of three neutral arbitrators. An application under section 11 of the Act for appointment of arbitrator is dependent on Article 137 of the schedule to the Limitation Act, 1963 and has to be made within 3 years from the date when the right to apply initiates. 32) If however, the arbitration agreement between the parties does not contain any provision for the same, then the provisions of 13(2) shall come into play. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties. [1] One of the best examples to illustrate this principle concerns the selection and appointment of arbitrators by the parties. Ltd. v. Rani Construction (P) Ltd2000(8) SCC 159, [vi]S.B.P & Co. v. Patel Engineering2005 8 SCC 618, [vii]Arbitration and Conciliation Act, 1996,Section 11(4), Hello. Parties may request from the SCC a list of candidates that meet certain criteria; they may also consider searching for information on potential arbitrators through Arbitrator Intelligence, GAR ART, Jus Mundi, ArbiLex or other relevant sources. An arbitration agreement as defined under Section 7 of the Act is a condition precedent in order to exercise the power to appoint an arbitrator or an Arbitral Tribunal, according to Section 11 of the Act by the Chief Justice or his designate. 4. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. (7) Language (Sec. The decision made by the tribunal will be final and not subject to any review by the courts. (x) Where District Judges had been designated by the Chief Justice of the High Court under Section 11(6) of the Act, the appointment orders thus far made by them will be treated as valid; but applications if any pending before them as on this date will stand transferred, to be dealt with by the Chief Justice of the High Court concerned or a Judge of that Court designated by the Chief Justice.[vi], For the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, two things have to be taken care of:(i) That there is a dispute between the parties to the agreement and it is alive. ARBITRATION. In such appointment, two considerations are to be made , a) Required qualifications of the arbitrator as provided in the agreement of the parties, and. Court in this context means the Principal Civil Court of original jurisdiction in a district and includes the High Court. How do I get appointed as an arbitrator by the SCC?The SCC does not have a list or a roster of approved arbitrators, but it is a high priority to have knowledge of and contact with demonstrably experienced and skilled arbitrators - with expertise from different industries, areas of business and legal issues. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held. 18) Once the other party has filed the application in the court, the right to make the appointment is lost and the chosen procedure is abandoned. The parties should ideally follow an agreed procedure for appointing the arbitrators. 16), Section 16 is derived fromofUNCITRAL Model Arbitration Law. In case of appointment of sole arbitrator, section 11(5) provides that subject to the provisions of subsection (2), the parties have to appoint the arbitrator within 30 days from the receipt of request by one party. Further, the act has accorded liberty to the parties to prescribe their own procedure, which will prevail over the provisions of the act. As and from this date, the position as adopted in this judgment will govern even pending applications under Section 11(6) of the Act. The question for the appointment of Presiding Officer arises only when there is a conflict of opinion between an even number of arbitrators. 17); The procedure for the appointment of the tribunal is typically set forth in the . Call us at- 8006553304, 2014-2022 Law Times Journal | All Rights Reserved. These will be his own jurisdiction to entertain the request, the existence of a valid arbitration agreement, the existence or otherwise of a live claim, the existence of the condition for the exercise of his power and on the qualifications of the arbitrator or arbitrators. Arbitrators can be non-lawyer experts in areas relevant to the dispute, but in practice, the vast majority of arbitrators are lawyers, law professors or scholars, judges and other dispute resolution professionals. Further, section 11(13) made it incumbent upon the Supreme Court or the High Court or person designated by them to dispute of the application for appointment of arbitrator within 60 days from the date of service of notice on the opposite party. That the appointment of any officer nominated by RESPONDENT as the Arbitrator in the present dispute matter is a clear ground to challenge the appointment of the arbitrator. Arbitrator challenges were only mounted in 1.5% of arbitrations commenced in 2020 (six), with one challenge upheld. 25); Section 11 only confers power on the High Court to appoint an arbitrator or presiding arbitrator only when the following conditions are fulfilled: b) the agreement contains for the appointment of one or more arbitrators; c) the appointment of the arbitrator is to be made by mutual consent of all the parties to the dispute. When the challenge is rejected, the arbitration proceedings shall continue and the tribunal shall make an award. If a party fails or declines to appoint an arbitrator, the SCC Board will make the appointment on behalf of that party. Method of Appointment of the Arbitrators. Section 11(3) provides that in case there are three arbitrators, each party shall appoint one arbitrator and the two appointed arbitrators shall then appoint a third arbitrator. The Arbitration Institute of the Stockholm Chamber of Commerce, Information from the SCC relating to Covid-19, SCC Practice Notes on Arbitrator Challenges 2016-2018, SCC statistics on who appoints the arbitrators, The composition of the arbitral tribunal is covered by Articles 16-18 of the, The standards for impartiality and independence are discussed in the. 3. The scope of functions of an umpire and those of the presiding arbitrator in a three member arbitral tribunal may be different. (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 . We need money to operate the site, and almost all of it comes from our online advertising. (iv) Designation of a District Judge as the authority under Section 11(6) of the Act by the Chief Justice of the High Court is not warranted on the scheme of the Act. All institutional rules state that an arbitrator may be removed from a tribunal if he/she is . 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