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ADR lecture ppt9

The Arbitration Act outlines the procedures for appointing arbitrators, including the number of arbitrators and the qualifications required. It allows parties to determine the appointment process but provides mechanisms for intervention by the Supreme Court or High Court if parties fail to agree. Additionally, it establishes grounds for challenging an arbitrator's independence or impartiality and includes provisions for amending the Fourth Schedule by the Central Government.

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Archita Jha
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6 views

ADR lecture ppt9

The Arbitration Act outlines the procedures for appointing arbitrators, including the number of arbitrators and the qualifications required. It allows parties to determine the appointment process but provides mechanisms for intervention by the Supreme Court or High Court if parties fail to agree. Additionally, it establishes grounds for challenging an arbitrator's independence or impartiality and includes provisions for amending the Fourth Schedule by the Central Government.

Uploaded by

Archita Jha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ARBITRATION ACT

CONT..
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 by 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 an arbitration


with three arbitrators, 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 of 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 of a
party, by the Supreme Court or, as the case may be, the High
Court or any person or institution designated by such Court;
(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 Supreme
Court or, as the case may be, the High Court or any
person or institution designated by such Court.
(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 Supreme Court or, as the case may be, the High
Court or any person or institution designated by such Court] to
take the necessary measure, unless the agreement on the
appointment procedure provides other means for securing the
(6A) The Supreme Court or, as the case may be, the High Court,
while considering any application under sub-section (4) or sub-
section (5) or sub-section (6), shall, notwithstanding any
judgment, decree or order of any Court, confine to the
examination of the existence of an arbitration agreement.

(6B) The designation of any person or institution by the Supreme


Court or, as the case may be, the High Court, for the purposes of
this section shall not be regarded as a delegation of judicial
power by the Supreme Court or the High Court.
(7) A decision on a matter entrusted by sub-section (4) or sub-section
(5) or sub-section (6) to the Supreme Court or, as the case may be, the
High Court or the person or institution designated by such Court is final
and no appeal including Letters Patent Appeal shall lie against such
decision.

(8) The Supreme Court or, as the case may be, the High Court or the
person or institution designated by such Court, before appointing an
arbitrator, shall seek a disclosure in writing from the prospective
arbitrator in terms of sub-section (1) of section 12, and have due regard
to— (a) any qualifications required for the arbitrator by the agreement
of the parties; and (b) the contents of the disclosure and other
considerations as are likely to secure the appointment of an
● (9) In the case of appointment of sole or third arbitrator in an
international commercial arbitration, 2 [the Supreme Court or the
person or institution designated by that Court] may appoint an
arbitrator of a nationality other than the nationalities of the parties
where the parties belong to different nationalities.
● (10) The Supreme Court or, as the case may be, the High Court,
may make such scheme as the said Court may deem appropriate
for dealing with matters entrusted by sub-section (4) or sub-section
(5) or sub-section (6), to it.
● (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, 4 [different High Courts
or their designates, the High Court or its designate to whom the
request has been first made] under the relevant sub-section shall
● (12) (a) Where the matters referred to in sub-sections (4), (5), (6),
(7), (8) and sub-section (10) arise in an international commercial
arbitration, the reference to the “Supreme Court or, as the case
may be, the High Court” in those sub-sections shall be construed as
a reference to the “Supreme Court”; and
● (b) Where the matters referred to in sub-sections (4), (5), (6), (7),
(8) and sub-section (10) arise in any other arbitration, the reference
to “the Supreme Court or, as the case may be, the High Court” in
those sub-sections shall be construed as a reference to 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 that High
Court.
● (13) An application made under this section for appointment of an arbitrator
or arbitrators shall be disposed of by the Supreme Court or the High Court or
the person or institution designated by such Court, as the case may be, as
expeditiously as possible and an endeavour shall be made to dispose of the
matter within a period of thirty days from the date of service of notice on the
opposite party.

● (14) For the purpose of determination of the fees of the arbitral tribunal and
the manner of its payment to the arbitral tribunal, the High Court may frame
such rules as may be necessary, after taking into consideration the rates
specified in the Fourth Schedule. Explanation.—For the removal of doubts, it
is hereby clarified that this sub-section shall not apply to international
commercial arbitration and in arbitrations (other than international
commercial arbitration) in case where parties have agreed for determination
of fees as per the rules of an arbitral institution.
11A. POWER OF CENTRAL GOVERNMENT TO AMEND FOURTH SCHEDULE

● (1) If the Central Government is satisfied that it is necessary or expedient so


to do, it may, by notification in the Official Gazette, amend the Fourth
Schedule and thereupon the Fourth Schedule shall be deemed to have been
amended accordingly.
● (2) A copy of every notification proposed to be issued under sub-section (1),
shall be laid in draft before each House of Parliament, while it is in session,
for a total period of thirty days which may be comprised in one session or in
two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both
Houses agree in disapproving the issue of the notification or both Houses
agree in making any modification in the notification, the notification shall not
be issued or, as the case may be, shall be issued only in such modified form
as may be agreed upon by the both Houses of Parliament.
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,—
● (a) such as the existence either direct or indirect, of any past or present
relationship with or interest in any of the parties or in relation to the subject-
matter in dispute, whether financial, business, professional or other kind, which is
likely to give rise to justifiable doubts as to his independence or impartiality; and
● (b) which are likely to affect his ability to devote sufficient time to the arbitration
and in particular his ability to complete the entire arbitration within a period of
twelve months.
Explanation 1.—The grounds stated in the Fifth Schedule shall guide in determining
whether circumstances exist which give rise to
justifiable doubts as to the independence or impartiality of an
arbitrator.
Explanation 2.—The disclosure shall be made by such person in the form specified in
the Sixth Schedule.
● (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.

● (5) Notwithstanding any prior agreement to the contrary, any person whose
relationship, with the parties or counsel or the subject-matter of the dispute, falls
under any of the categories specified in the Seventh Schedule shall be ineligible
to be appointed as an arbitrator:
● Provided that parties may, subsequent to disputes having arisen between them,
waive the applicability of this sub-section by an express agreement in writing.]
• End of slides

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