The composition of an arbitral tribunal under the Arbitration and

Conciliation Act, 1996,

1. Number of Arbitrators (Section 10)
What the Act Says:
The parties are free to decide the number of arbitrators.
The law prohibits an even number of arbitrators to avoid a deadlock during decision-making.
If the parties do not agree on the number of arbitrators, the tribunal will consist of a sole
arbitrator by default.
Key Takeaway:
This provision reflects the principle of party autonomy, allowing the parties to structure the
tribunal according to their needs. However, in the absence of an agreement, a single arbitrator
ensures efficiency and simplicity in resolving disputes.

2. Appointment of Arbitrators (Section 11)

Party-Determined Procedure:
Parties have the freedom to decide how arbitrators will be appointed.
For example:
They can specify the qualifications of arbitrators (e.g., legal expertise, industry knowledge).
They may also agree on appointing a specific institution (e.g., Indian Council of Arbitration)
to handle the appointment process.
Default Procedure if No Agreement:
Sole Arbitrator:
If one arbitrator is to be appointed, both parties must agree on the appointment.
If a party fails to cooperate, the court can step in to appoint the arbitrator.
Three Arbitrators:
Each party appoints one arbitrator.
The two arbitrators then select a third arbitrator, who acts as the presiding arbitrator.
If any party or the two arbitrators fail to make the required appointments, the court will
intervene.
Role of the Courts:
When a party fails to appoint an arbitrator, the Supreme Court (for international arbitration) or
the High Court (for domestic arbitration) can appoint one.
Courts are required to dispose of such applications within 60 days to prevent delays.
Why This Provision Matters:
This ensures a balance between allowing parties to decide freely and providing a mechanism
to resolve deadlocks or non-cooperation, ensuring that arbitration proceeds without undue
delay.
3. Grounds for Challenging Arbitrators (Section 12)
When Can an Arbitrator Be Challenged?
An arbitrator’s appointment can be questioned if:
Doubts About Impartiality or Independence:
If there are circumstances that could raise justifiable doubts about the arbitrator’s ability to act
impartially.
The Act refers to Schedule V (potential conflicts of interest) and Schedule VII (absolute
ineligibility) for guidance.
Example: If the arbitrator has a financial interest in the dispute or has a close relationship with
one party.
Failure to Meet Qualifications:
If the arbitrator does not meet the specific qualifications agreed upon by the parties (e.g., having
expertise in construction law).
4. Challenge Procedure (Section 13)
How to Challenge an Arbitrator?
Agreed Procedure: If the parties have agreed on a method to challenge arbitrators, that
procedure must be followed.
Default Rule:
The challenging party must file a written statement explaining the grounds for the challenge to
the arbitral tribunal.
The tribunal will decide on the challenge.
If the challenge is unsuccessful, the tribunal continues, but the challenging party can raise the
issue later when contesting the final award.
Why This Is Important:
This provision ensures that disputes over the arbitrator’s impartiality or qualifications are
addressed promptly, without derailing the entire arbitration process.
5. Termination of Arbitrator’s Mandate (Section 14)
When Does an Arbitrator’s Mandate End?
De Jure or De Facto Inability:
If the arbitrator is legally disqualified (e.g., they fall under Schedule VII) or unable to perform
their duties (e.g., due to illness).
Withdrawal or Agreement:
The arbitrator withdraws voluntarily, or both parties agree to terminate the mandate.
Significance:
This section ensures that an arbitrator who cannot perform their duties does not continue to
hold up the arbitration process.
6. Substitution of Arbitrators (Section 15)
What Happens When an Arbitrator’s Mandate Terminates?
A substitute arbitrator must be appointed following the same procedure used to appoint the
original arbitrator.
The arbitral tribunal decides whether to:
Repeat earlier proceedings, or
Resume from the point of termination (depending on the circumstances).
Why It Matters:
This provision ensures that arbitration remains efficient and flexible, even if an arbitrator has
to be replaced.
Schedules Related to Arbitrators
Schedule V:
Lists circumstances that may give rise to doubts about the impartiality or independence of
arbitrators (e.g., past business relationships with a party).
Schedule VII:
Enumerates situations where an arbitrator is absolutely ineligible (e.g., being an employee of
one of the parties).
Conclusion
The provisions for the composition of the arbitral tribunal under the Arbitration and
Conciliation Act, 1996, emphasize party autonomy, impartiality, and efficiency. While allowing
parties to structure their arbitration process freely, the Act also provides robust safeguards to
ensure fairness and resolve deadlocks. By balancing flexibility and procedural safeguards, the
Act aims to create a fair and effective dispute resolution mechanism.
Recourse Against Arbitral Award: Section 34 of the Arbitration and
Conciliation Act, 1996
Section 34 of the Arbitration and Conciliation Act, 1996 (ACA) provides the mechanism for
challenging an arbitral award in India. This section reflects a balance between party autonomy
and judicial oversight, allowing limited grounds for setting aside an arbitral award while
promoting arbitration as a final and binding dispute resolution mechanism.
Key Features of Section 34
1. Application to Set Aside an Award
A party seeking to challenge an arbitral award must file an application to the appropriate court.
The application must be made within three months from the date the party received the award.
This period can be extended by 30 days at the court’s discretion if sufficient cause for the delay
is shown, but no further extension is allowed.

2. Grounds for Challenging an Arbitral Award

An arbitral award can only be set aside on the following specific grounds:
(A) Party-Related Issues (Section 34(2)(a))
Incapacity of a Party: A party was under some legal incapacity (e.g., a minor or mentally
incapacitated person).
Invalid Arbitration Agreement: The arbitration agreement was not valid under the law agreed
upon by the parties or Indian law if no law was specified.
(B) Procedural Irregularities
Lack of Proper Notice: A party was not given proper notice of the appointment of the arbitrator
or the arbitral proceedings, affecting their ability to present their case.
Award Beyond Scope: The award contains decisions on matters beyond the scope of the
arbitration agreement or terms of reference.
Only the part of the award exceeding the scope will be set aside, not the entire award.
(C) Arbitrator's Conduct
Arbitral Procedure Not in Accordance with Agreement: The procedure adopted was
inconsistent with the agreement between the parties or violated the provisions of the Act.
(D) Conflict with Public Policy (Section 34(2)(b))
Contrary to Public Policy of India: This includes:
The award was induced or affected by fraud or corruption.
The award violates the fundamental policy of Indian law.
The award is in conflict with the basic notions of morality or justice.
(E) Patent Illegality (Section 34(2A)) (Introduced by 2015 Amendment):
Patent Illegality: The award suffers from a manifest error in law.
This applies only to domestic arbitrations, not international arbitrations seated in India.
Example: If the arbitrator ignores the explicit provisions of a statute.

3. Exclusions: No Review of Merits

The court cannot review the merits of the case or re-examine the evidence presented before the
arbitrator.
Its role is limited to examining whether the grounds for setting aside, as specified in Section
34, are met.

4. Procedure
The court may adjourn the proceedings to allow the arbitral tribunal to eliminate the grounds
for challenge by taking necessary actions, such as correcting procedural errors or clarifying
issues in the award.

5. Limited Judicial Intervention

Section 34 embodies the principle of minimum judicial intervention to respect the finality of
arbitral awards and ensure quick dispute resolution.

Important Amendments to Section 34

2015 Amendment:
Narrowed the interpretation of "public policy" to prevent excessive challenges to awards.
Introduced "patent illegality" as a ground for setting aside awards in domestic arbitrations.
2019 Amendment:
Introduced a timeline for the courts to dispose of Section 34 applications within one year from
the date of service of notice.
Conclusion
Section 34 is a cornerstone of the Indian arbitration framework, allowing challenges to arbitral
awards only on narrowly defined grounds. This ensures the sanctity and finality of arbitration
while providing a safeguard against procedural irregularities or violations of fundamental
principles. Its evolving interpretation through amendments and judicial rulings demonstrates
India’s commitment to strengthening arbitration as a reliable dispute resolution mechanism.
The Arbitration and Conciliation Act, 1996 (ACA) is a comprehensive legislation enacted to
govern arbitration, conciliation, and related alternative dispute resolution mechanisms in India.
The Act aligns with international standards, particularly the UNCITRAL Model Law on
International Commercial Arbitration (1985) and the UNCITRAL Arbitration Rules
(1976).
Key Features of the ACA, 1996
1. Objectives
The Act aims to:
• Provide an efficient and fair framework for resolving disputes outside the traditional
court system.
• Minimize judicial intervention in arbitration proceedings.
• Promote international and domestic arbitration in India.
• Ensure the enforceability of arbitral awards akin to court decrees.
2. Structure of the Act
The ACA is divided into four parts and three schedules:
Part I: Arbitration (Domestic and International Commercial)
• Governs all arbitrations conducted in India unless excluded by the parties.
• Covers topics like:
o General provisions (Sections 2–6).
o Composition of the arbitral tribunal (Sections 10–15).
o Conduct of arbitral proceedings (Sections 16–27).
o Making of awards and termination of proceedings (Sections 28–33).
o Recourse against arbitral awards (Section 34).
o Enforcement of awards (Section 36).
Part II: Enforcement of Certain Foreign Awards
• Deals with the recognition and enforcement of foreign arbitral awards under:
o The New York Convention.
o The Geneva Convention.
• Sections 44 to 60 specify the conditions for recognition and enforcement.
Part III: Conciliation
• Focuses on the process of conciliation as a form of alternative dispute resolution
(Sections 61–81).
• Provides a voluntary framework for parties to amicably resolve disputes with the
assistance of a conciliator.
Part IV: Supplementary Provisions
• Contains miscellaneous provisions (Sections 82–86) for implementation, repeals, and
savings.
3. Key Concepts and Provisions
Arbitration Agreement (Section 7)
• Must be in writing.
• Can be a separate agreement or a clause in a contract.
• Reflects the consent of parties to submit disputes to arbitration.
Party Autonomy
• The Act allows parties to determine procedures, arbitrators, language, and governing
law of the arbitration.
Minimum Judicial Intervention
• Courts can only intervene in arbitration matters under specific circumstances, such as:
o Appointment of arbitrators (Section 11).
o Interim relief (Section 9).
o Setting aside an arbitral award (Section 34).
Finality and Enforcement of Awards
• An arbitral award is binding and enforceable as a court decree (Section 36).
• Grounds for refusing enforcement are limited and aligned with international standards.
4. Amendments to the Act
The ACA has undergone several amendments to improve efficiency, reduce delays, and
promote arbitration in India:
2015 Amendment:
• Introduced timelines for arbitration proceedings.
• Narrowed the interpretation of "public policy" as a ground for setting aside awards.
• Allowed interim measures by arbitral tribunals (Section 17).
• Emphasized minimal judicial interference.
2019 Amendment:
• Established the Arbitration Council of India to regulate and promote arbitration.
• Introduced stricter timelines for arbitration and court proceedings under the Act.
• Encouraged institutional arbitration.
2021 Amendment:
• Restricted the automatic stay on arbitral awards during challenges under Section 36.
 • Introduced provisions to protect the integrity of arbitration by disqualifying arbitrators
with specific conflicts of interest.
5. International Alignment
• The Act incorporates principles from international conventions like the New York
Convention and the Geneva Convention.
• It positions India as a potential hub for international arbitration by aligning with global
best practices.
Conclusion
The Arbitration and Conciliation Act, 1996 is a cornerstone of India's dispute resolution
framework. By promoting arbitration and conciliation, the Act aims to reduce the burden on
courts and provide a speedy, efficient, and cost-effective mechanism for resolving disputes.
Amendments over time reflect India's commitment to modernizing arbitration law and aligning
with international standards.

Arbitral Proceedings under the Arbitration and Conciliation Act, 1996

Arbitral proceedings refer to the process by which disputes are resolved through arbitration,
following the principles and framework provided under the Arbitration and Conciliation Act,
1996 (ACA). These proceedings are intended to ensure efficiency, fairness, and adherence to
party autonomy.
Key Provisions Governing Arbitral Proceedings
1. Commencement of Arbitral Proceedings (Section 21)
• When Proceedings Begin: Arbitration proceedings commence when the respondent
receives a request for arbitration from the claimant, unless the parties agree otherwise.
• Significance: The date of commencement is critical for determining limitations and
other procedural milestones.
2. Place of Arbitration (Section 20)
• Party Autonomy: The parties are free to agree on the place of arbitration.
• In the Absence of Agreement: The arbitral tribunal determines the place based on the
circumstances of the case and the convenience of the parties.
3. Language of Arbitration (Section 22)
• Party Agreement: The parties can agree on the language or languages to be used in the
proceedings.
• Tribunal's Decision: If there is no agreement, the tribunal decides the language to
ensure fairness and clarity.
4. Conduct of Arbitral Proceedings (Sections 23–27)
a) Statement of Claim and Defense (Section 23)
• Submission by Parties:
o The claimant submits a statement of claim outlining the facts, legal issues, and
relief sought.
o The respondent submits a defense, which may include counterclaims.
• Timelines: The tribunal may fix timelines for these submissions.
b) Equal Treatment of Parties (Section 18)
• Core Principle: The tribunal must treat both parties equally and ensure each party has
a full opportunity to present their case.
c) Determination of Rules of Procedure (Section 19)
• Party Autonomy: Parties are free to agree on procedural rules.
• Tribunal's Role: In the absence of agreement, the tribunal can conduct the proceedings
in a manner it considers appropriate, ensuring fairness and efficiency.
d) Hearings and Written Proceedings (Section 24)
• Party's Right to Hearing: The tribunal must hold oral hearings if either party requests
it.
• Tribunal's Discretion: Proceedings can be conducted based on written submissions
unless a hearing is required.
e) Evidence and Expert Assistance (Sections 25–27)
• Section 25: If a party fails to appear or submit documents without valid reason, the
tribunal may proceed ex parte.
• Section 26: The tribunal can appoint experts to report on specific issues.
• Section 27: The tribunal may seek court assistance in taking evidence, such as
summoning witnesses or documents.
5. Interim Measures (Sections 9 and 17)
• Court-Ordered Interim Relief (Section 9): Before or during arbitral proceedings,
parties may approach the court for interim measures like preservation of assets or
injunctions.
• Tribunal-Ordered Interim Relief (Section 17): Once constituted, the arbitral tribunal
can also grant interim relief similar to the powers of a civil court.
6. Default Rules and Deadlines
 • Default of a Party (Section 25): If a party fails to participate without valid reason, the
tribunal may proceed with the arbitration and make an award based on the evidence
presented.
• Timelines (Section 29A):
o Arbitral proceedings must be completed within 12 months from the date the
tribunal is constituted.
o This period can be extended by 6 months with mutual consent or by the court in
exceptional circumstances.
7. Decision-Making by Arbitral Tribunal (Sections 28–29)
• Governing Law (Section 28):
o The tribunal applies the law chosen by the parties.
o If no law is specified, the tribunal applies Indian substantive law for domestic
arbitration or appropriate conflict-of-law rules for international arbitration.
• Majority Decisions (Section 29):
o In tribunals with more than one arbitrator, decisions are made by a majority.
8. Confidentiality and Speed
• Confidentiality: Arbitral proceedings are private, and disclosures are limited to ensure
the integrity of the process.
• Efficiency: The Act emphasizes timely resolution and encourages parties and
arbitrators to avoid unnecessary delays.
Conclusion
Arbitral proceedings under the ACA, 1996, are designed to ensure flexibility, party autonomy,
and procedural fairness. By balancing minimal judicial intervention with robust procedural
safeguards, the Act creates an effective framework for resolving disputes efficiently and
impartially.