How to become an Arbitrator

Any person who is of major in age and is of sound mind can be appointed as an Arbitrator in India

Arbitrator as a term is not defined under The Arbitration and Conciliation Act, 1996, while other related terms like Arbitration, Arbitration Agreement, Arbitration Award, Arbitral Tribunal and Arbitration Institution stands defined.

Section 11 of The Arbitration and Conciliation Act, 1996 provides that a Person of any Nationality can become an Arbitrator, unless agreed otherwise by the Parties. 

The parties to an Arbitration agreement can agree to refer their disputes to a specific person by either name such person or give his designation in the Arbitration agreement or by agreeing over the name of an Arbitration Institution, who in turn can appoint an Arbitrator out of its inhouse Panel.

When does Court have jurisdiction to appoint Arbitrator

In cases where the name or designation of the Arbitrator is not agreed upon amicably between the parties, in that event the Court will have jurisdiction to appoint Arbitrator.

When the procedure for appointment of Arbitrator, as agreed between the parties fails and an application is filed in court for appointment, the court cannot ignore provisions contained in Clause (a) of Sub-section (8) of section 11 of the Act wherein it is specifically provided that 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.

Consequently, the Legal position as on date is that the Law in India does not prescribe any specific qualifications for becoming an Arbitrators.

Institutional Panel of Arbitrators

Institutional Arbitration Centres like IDRC have included wide range of experts in their panel after drawing them from Judiciary including Former Chief Justice of India, Supreme Court Judges, High Court Chief Justices, High Court Judges and Judges of District Courts.

Also, Domain Experts from various other professions, trade and business are empanelled including CAs, Doctors, Corporate Leaders, Public Sector Executives and Engineers. The Panel of persons are prepared on the basis of their proven track-record of impartiality, for their domain knowledge, experience and integrity.

Eighth Schedule of Arbitration and Conciliation Act, 1996

(Now Omitted)

A person shall not be qualified to be an arbitrator unless he -
(i) is an advocate within the meaning of the Advocates Act, 1961 (25 of 1961) having ten years of practice experience as an advocate; or

(ii) is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (61 of 1949) having ten years of practice experience as a chartered accountant; or

(iii) is a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959) having ten years of practice experience as a cost accountant; or

(iv) is a company secretary within the meaning of the Company Secretaries Act, 1980 (56 of 1980) having ten years of practice experience as a company secretary; or

(v) has been an officer of the Indian Legal Service; or

(vi) has been an officer with law degree having ten years of experience in the legal matters in the Government, Autonomous Body, Public Sector Undertaking or at a senior level managerial position in private sector; or

(vii) has been an officer with engineering degree having ten years of experience as an engineer in the Government, Autonomous Body, Public Sector Undertaking or at a senior level managerial position in private sector or self-employed; or

(viii) has been an officer having senior level experience of administration in the Central Government or State Government or having experience of senior level management of a Public Sector Undertaking or a Government company or a private company of repute;

(ix) is a person, in any other case, having educational qualification at degree level with ten years of experience in scientific or technical stream in the fields of telecom, information technology, Intellectual Property Rights or other specialised areas in the Government, Autonomous Body, Public Sector Undertaking or a senior level managerial position in a private sector, as the case may be.

General norms applicable to Arbitrator

(i) The arbitrator shall be a person of general reputation of fairness, integrity and capable to apply objectivity in arriving at settlement of disputes;

(ii) the arbitrator must be impartial and neutral and avoid entering into any financial business or other relationship that is likely to affect impartiality or might reasonably create an appearance of partiality or bias amongst the parties;

(iii) the arbitrator should not involve in any legal proceeding and avoid any potential conflict connected with any dispute to be arbitrated by him;

(iv) the arbitrator should not have been convicted of an offence involving moral turpitude or economic offence;

(v) the arbitrator shall be conversant with the Constitution of India, principles of natural justice, equity, common and customary laws, commercial laws, labour laws, law of torts, making and enforcing the arbitral awards;

(vi) the arbitrator should possess robust understanding of the domestic and international legal system on arbitration and international best practices in regard thereto;

(vii) the arbitrator should be able to understand key elements of contractual obligations in civil and commercial disputes and be able to apply legal principles to a situation under dispute and also to apply judicial decisions on a given matter relating to arbitration; and

(viii) the arbitrator should be capable of suggesting, recommending or writing a reasoned and enforceable arbitral award in any dispute which comes before him for adjudication.

Special Training Courses for Arbitrators

Special Courses are also being organised these days in India for Training of Professionals as Arbitrators.

These Courses are being organised by leading institutes like  Indian Institute of Arbitration – IIArb and NLU Delhi.

       Eligibility

• Senior Secondary School Examination (10+2 System) or Equivalent Examination with 55% marks.

       Who may apply

• Students doing LL.B., LL.M., B.Com., M.Com., M.B.A., C.A., C.S., Lawyers, etc.

       Course Objectives

• To understand the limitations of courts as a system of dispute resolution in respect of few disputes
• To understand effective resolution of dispute
• To familiarize with domestic and international commercial arbitration
• To know about various legal and regulatory framework governing arbitration
• To learn the latest development in the field of arbitration

       Learning Outcomes

After successful completion of the course, the participants will -

• Develop a thorough understanding of the arbitration as a method of dispute resolution
• Understand the legal and regulatory framework governing both domestic and International Commercial Arbitration Agreements
• Understand the legal framework for enforcement of Arbitral Awards
• Acquire theoretical and practical understanding of arbitration process