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How are arbitrators appointed in cases of multiple parties in Indian arbitration?

06-May-2024
Arbitration

Answer By law4u team

In cases involving multiple parties in Indian arbitration, arbitrators are typically appointed through mutual agreement or as per the arbitration agreement between the parties. If the parties cannot agree on the appointment of arbitrators, the procedure for appointment may vary depending on whether the arbitration is governed by the Arbitration and Conciliation Act, 1996 or other applicable rules. Under the Arbitration and Conciliation Act, 1996: Mutual Agreement: Ideally, the parties should try to reach a mutual agreement on the appointment of arbitrators. They can jointly appoint a sole arbitrator or multiple arbitrators as per their agreement. Default Procedure: If the parties cannot agree on the appointment of arbitrators, each party will nominate one arbitrator, and these arbitrators will then select a presiding arbitrator or umpire. If a party fails to nominate an arbitrator within thirty days of receipt of a request to do so, or if the nominated arbitrators fail to agree on the appointment of the presiding arbitrator within thirty days of their appointment, the appointment may be made upon request to the court. Court Intervention: If the default procedure fails or if the arbitration agreement provides for appointment by a third party (like an institution) and such appointment procedure fails, any party can approach the court for the appointment of arbitrators. Arbitral Institution: Sometimes, parties may choose to arbitrate under the rules of an arbitral institution such as the Indian Council of Arbitration (ICA), International Chamber of Commerce (ICC), or London Court of International Arbitration (LCIA). In such cases, the institution's rules will govern the appointment of arbitrators. It's important for parties involved in arbitration to carefully review their arbitration agreement and understand the applicable rules and procedures for appointing arbitrators.

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