This Article has been written by Ms. Namrata Sharma, a 3rd year LLB Student.
Arbitral tribunal” means a sole arbitrator or a panel of arbitrators. An arbitral tribunal is a panel of one or more adjudicators which is formed and aims to resolve a dispute by way of arbitration. The tribunal may consist of a sole arbitrator, or there may be two or more arbitrators, which might include either a chairman or an umpire.
A dispute can go to arbitration on the basis of an agreement between the disputing parties to submit the dispute to resolution by arbitration. Where an arbitrator or a tribunal of arbitrators is appointed and has been given the legal authority to act by the parties.
The composition of the arbitral tribunal or the appointing of the sole arbitrator is a characteristic and crucial issue in arbitration. Composition of the Arbitral tribunal plays a very important role in solving the disputes. Not only this, but the composition of the tribunal will have some important legal consequences related to the starting date for the arbitration and can have repercussions if a party applies to have the award set aside or enforced later on.
The number of arbitrators should be odd and not even. It helps in determining the clear majority of the tribunal and avoids any sort of discrepancy in that regard. In the same amendment Act, the provisions regarding the selection of arbitrators were also modified. A person of any nationality can be an arbitrator in a case unless specifically provided in the agreement. As per the new provisions, if the parties or the two arbitrators(in the case of three arbitrators tribunal) are not able to appoint the required arbitrator then the Supreme Court and High Courts have the responsibility to designate arbitral institutions as per their respective jurisdictions. Parties to the dispute approach the courts for the appointment of arbitrators to decide upon the dispute at hand.
Jursidiction of Arbitral Tribunal
There is no “inherent” jurisdiction in an arbitral tribunal. The arbitral tribunal takes its jurisdiction to decide a particular dispute from the agreement between the parties. An arbitral tribunal does not get its jurisdiction from any legislation. The scope of the tribunal’s jurisdiction will be determined by the scope of the arbitration agreement, subject only to any mandatory legislative enactments governing the arbitration agreement. Under the theory of party autonomy, if two parties have the legal right to settle a dispute between themselves, then they can give jurisdiction to a third party to settle it for them . An Arbitration agreement is an important aspect of the Arbitration.
Composition of Arbitral Tribunal
It consists of a Chairperson who is either:
- A judge of the Supreme Court
- A judge of a High Court
- Chief Justice of a High Court
- An eminent person with expert knowledge in the conduct of arbitration.
Costs of the Arbitral Tribunal
Unless otherwise agreed between the arbitral tribunal and the parties, the arbitral tribunal shall determine its own compensation and the settlement of its expenses. The determination of costs shall be included in the award or the order terminating the case. The amount falls due for payment one month after the award or order is made.
Unless otherwise agreed between the arbitral tribunal and the parties, the parties are jointly and severally liable for the costs of the arbitral tribunal.
Power to take interim measures
Section 17 of the Arbitration and Conciliation Act, 1996 provides the power to the tribunal to take an interim measure when a party to the dispute approaches the tribunal for the same. The interim measures that can be taken by the arbitration tribunal include the following:
- Appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings
- Preservation, interim custody, or sale of any goods which is the subject-matter of the arbitration agreement
Power to proceed ex-parte
The arbitration tribunal has the power to proceed ex parte (an order which is given in absence of one of the parties caused on their own will) if any of the following conditions arise-
- In cases where the claimant fails to submit or communicate their statements as per Section 23 of the Arbitration and Conciliation Act, 1996;
- In cases where the respondent fails to submit or communicate their statements as per Section 23 of the Arbitration and Conciliation Act, 1996; and
- In cases where, any of the parties to the dispute fails to appear at an oral hearing or to produce the document or any sort of documentary evidence asked by the tribunal.
Although it is to be noted that an arbitration tribunal cannot pass an ex parte order on the mere filing of an interim application as the Arbitration and Conciliation Act, 1996 mandates sufficient advance notice for any hearing.
Power to appoint an expert
Section 26 of the Arbitration and Conciliation Act, 1996 authorises the arbitral tribunal to appoint one or more experts to assist him on a specific issue if he finds it necessary in any case.
The arbitrator also has the power to give any relevant information, documents, or property to the experts for the purpose of inspection. The arbitrator also has the power to appoint the expert as a participant in a hearing.
The expert must have to show the parties that he has expertise in matters related to this case and this is the condition
Power to make awards
An arbitral award is similar to a judgement of the court. It is based on the interpretation of the facts and evidence by the arbitral tribunal. The decision of the tribunal is what resembles an arbitral award.
The main motive of the arbitral proceeding is the determination of the arbitral award and the power to declare it lies with the arbitral tribunal. The rules applicable in an arbitration proceeding are to be verified on the basis of the below-mentioned provisions:
- In matters related to international commercial arbitration, the dispute shall be decided according to the rules of proceedings which are decided by the parties, but if they fail to decide upon the rules, then the arbitrator himself decides them and they become applicable.
- In other matters, the arbitral tribunal shall have the right to decide the rules which are in accordance with the substantive law.
Declaring an arbitral award is not only a power conferred on the arbitral tribunals but also a duty on their part to assess all the information related to the dispute and then decide upon the same.
Expenses of arbitral tribunals
The expenses are to be borne by the unsuccessful party as per the award. This rule can be changed in certain cases where the court or arbitral tribunal may make a different order for which they have to record the reasons in writing.
Expenses for the matter of arbitration proceedings as per the Indian Council of Arbitration, which is one of the institutions, include the following-
- The fees and expenses of the arbitrators and witnesses
- Administrative and secretarial expenses
- Expenses on the travel of the arbitrator and others concerned
- Stamp duty on an award
- The cost of legal or technical advice
Aishwarya Says:
Law students often face problems, which they cannot share with their friends and families. We have started a column on our website Student’s Corner. In this column we are talking to several law students about the challenges that they face. Students who are interested in participating in the same, can fill this Google Form.
IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.
The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.
If you would also like to contribute to my website, then do share your articles or poems to aishwarya@aishwaryasandeep.com
Join our Whatsapp Group for latest Job Opening