Syllabus Revision Program by IslamiJamiatTalba,
Punjab University Law College.
1.1 Q1: DISCUSS THE PROCEDURE FOR APPOINTMENT AND REMOVAL OF AN ARBITRATOR UNDER
THE ARBITRATION ACT, 1940.
1.1.1 🔷 1. Introduction
The Arbitration Act, 1940 governs the law relating to arbitration in Pakistan. It provides a legal
framework for resolving disputes outside the traditional court system through a neutral third
party known as the arbitrator. The Act lays down the modes, conditions, and grounds for
appointment and removal of arbitrators.
1.1.2 🔷 2. Relevant Provisions
Sections 8 to 12 of the Arbitration Act, 1940
Supplemented by relevant case law and High Court Rules
1.1.3 🔷 3. Who is an Arbitrator?
An arbitrator is a neutral individual or panel chosen by the parties (or appointed by the court)
to hear and decide a dispute through arbitration rather than court litigation.
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1.1.4 🔷 4. Modes of Appointment of Arbitrator
1.1.4.1 🟢 a. By Agreement of Parties [Section 3 & 8]
Parties may mutually appoint a named arbitrator in the arbitration agreement.
In case of a panel, each party may appoint one arbitrator, and those arbitrators appoint
an umpire.
1.1.4.2 🟢 b. By Court [Section 8(2)]
If parties fail to appoint arbitrator(s), the court may appoint on application of a party.
Applicable in both pending suits and arbitration without court intervention.
1.1.5 🔷 5. Number of Arbitrators
No fixed limit, but usually one or three arbitrators.
In case of multiple arbitrators, a presiding umpire is also appointed.
1.1.6 🔷 6. Qualifications and Eligibility
Arbitrator must be:
o Impartial
o Legally competent
o Not disqualified by conflict of interest or relationship
1.1.7 🔷 7. Removal of Arbitrator – Legal Grounds [Section 11]
The court may remove an arbitrator or umpire on any of the following grounds:
1.1.7.1 ✅ a. Misconduct in Proceedings
Bias, partiality, or corruption
Failure to act fairly or legally
1.1.7.2 ✅ b. Neglect or Incompetence
Failure to use proper skill
Delay in decision-making
Lack of capacity or interest
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1.1.7.3 ✅ c. Failure to Use Reasonable Dispatch
Not conducting proceedings diligently
Prolonged or unexplained delays
1.1.8 🔷 8. Procedure for Removal
Party applies to the civil court under Section 11
Court hears both parties and examines the evidence
If misconduct or failure is proved, the arbitrator may be removed and replaced
1.1.9 🔷 9. Effect of Removal
A new arbitrator may be appointed by:
o Parties, or
o Court (if parties disagree)
The proceedings may start afresh unless otherwise agreed
1.1.10 🔷 10. Case Law
1.1.10.1 🏛 Government of Pakistan v. Shaukat Sons (PLD 1989 SC 90)
Held that an arbitrator can be removed only on strong evidence of misconduct, and removal
should not be done lightly.
1.1.10.2 🏛 Khyber Construction Co. v. WAPDA (2005 CLC 1418)
Arbitrator removed due to unreasonable delay in passing the award. Court emphasized the need
for efficient and speedy arbitration.
1.1.11 🔷 11. Comparison with Modern Arbitration Laws
Under UNCITRAL Model Law, grounds for removal include lack of impartiality,
legal incapacity, or undue delay.
Arbitration Act, 1940 is more court-controlled, while modern laws give more autonomy
to arbitral tribunals.
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1.1.12 🔷 12. Conclusion
The appointment and removal of arbitrators under the Arbitration Act, 1940 are designed to
preserve the integrity and neutrality of the arbitration process. The court plays a supervisory
role to ensure that arbitrators act fairly, diligently, and without bias, and provides mechanisms
to replace those who fail to fulfill their duty.
Prepared by: HASSAN MALIK
Team Head: USMAN KHAN
Project by IslamiJamiatTalaba, Punjab University Law College
BEST OF LUCK … !!
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