ARBITRAL TRIBUNAL

“Arbitral tribunal” means a sole arbitrator or a team of arbitrators. An arbitral tribunal is a panel of one or more arbitrators which is convened and sits to resolve a dispute through arbitration. The tribunal may consist of a two or more arbitrators, or there may sole arbitrator, which might include either a chairman or an umpire.


The Indian Council of Arbitration has issued a set of rules known as the ‘Rules of Arbitration’ to be followed by the parties under the arbitration process and the arbitrators. Rule 2 of these rules defines Arbitral Tribunal as “an arbitrator or arbitrators appointed for determining a particular dispute or difference”.

JURISDICTION OF ARBITRAL TRIBUNAL-

It would not be fair to say that an arbitral tribunal has statutory jurisdiction. The tribunal determines its jurisdiction to address the needs of the parties. The arbitral agreement prescribes primarily the ambit of jurisdiction of the arbitral tribunal. The institution of autonomy of the party states that if both parties have a solution to their own dispute and then have the solution to demonstrate this right to any third party, in order to publicly resolve that dispute.

It is therefore very important to consider a well-drafted agreement because it leads to the empowerment of the body to decide matters affecting power. The Arbitration and Conciliation Act, 1996 also specifically addresses the power to determine specific matters in Section 17 of the Act.

  • During the arbitration process the appointment of guardian for a person who is of unsound mind or minor age;
  • Subject matter of the arbitration must be of Safety/Security/ Confinement/ provisional injunction.

There are some cases where the competence of an arbitral tribunal depends on contingent gaining questions.

NUMBERS OF ARBITRATORS IN AN ARBITRAL TRIBUNAL-

Section 10 of the Act deals with the number of arbitrators who will be part of the arbitral tribunal. Subject to clause(1) of the Section, the parties to a dispute are free to determine equally the number of arbitrators who will form a tribunal to adjudicate a dispute. However, it is necessary for the number of appointed arbitrators to be an odd number and not even one ensuring that there are no ties. In addition, Section 10 further states that if the parties to a dispute cannot determine the number of arbitrators, in that case only one arbitrator may be appointed.


Rule 22 of the Rules of Arbitration provides that if the amount of a claim made under arbitration is One Crore or less, one arbitrator may resolve the dispute if the parties agree to it. In cases where a dispute arises over one Crore, an arbitral tribunal shall be composed of three arbitrators by agreement of the parties.


In Narayan Prasad Lohia vs Nikunj Kumar Lohia, the Supreme Court found that if two arbitrators were appointed by the Arbitral Tribunal instead of three, and gave the award with the same opinion, there would be no procedural frustration.

COSTS OF AN ARBITRAL TRIBUNAL-

Unless otherwise agreed between the arbitral tribunal and the parties, the arbitral tribunal shall determine its own compensation and the payment of its costs. The determination of costs will be based on the award or order to terminate the case. The amount must be paid one month after the release of the award or order.


The costs of the arbitral tribunal are paid by the parties jointly and severally liable, unless otherwise agreed between the arbitral tribunal and the parties.


The decision following subsection 1 will be enforceable unless it is brought before the courts within one month after the party has received a decision on costs. If in accordance with the provisions of section 38 the award is amended or an application is amended, or if an amendment is made or an application for an amendment award, a new time limit will be effective from the date the decision was made. The court will decide the matter in an interlocutory order. Any reduction in the costs of the arbitral tribunal will also apply to the benefit of the parties who did not bring the matter before the courts.

THE POWER OF THE ARBITRAL TRIBUNAL TO ORDER INTERIM MEASURES-

The arbitral tribunal may, at the request of the party, order any party to take interim action as the arbitral tribunal may deem necessary on the basis of the dispute. As a condition of making and applying the estimate, the arbitral tribunal may order the appellant to provide security for any of the consequences within the prescribed period. The parties may enter into a contract other than the provisions of this section.

The arbitral tribunal may reduce or withdraw an interim measure. If it turns out that the claim to be protected by an interim measure was not present when the interim measure was determined, the party requesting this measure will reimburse other parties for their losses as a result of the measure. The arbitral tribunal will determine a claim for compensation if requested to do so by the party.

OPERATION OF ARBITRAL TRIBUNALS-

  1. The chairperson of the arbitral tribunal shall preside over all its meetings. Arbitral the council may delegate to the chairperson the power to make procedural decisions.
  2. Unless otherwise provided in these Rules of Procedure and by agreement, the arbitral tribunal may perform its functions in any way, including telephone or electric means.
  3. Only arbitrators may participate in arbitral tribunal negotiations. However, the arbitral tribunal may allow arbitrators to rule staff, interpreters and translators to be present during the tribunal.
  4. The arbitrators and any persons held by the arbitral tribunal shall proceed confidentiality of arbitral tribunal proceedings, including negotiations.

CONCLUSION AND SUGGESTION-

Dispute resolution system seems to be very useful in domestic and international forums as delays caused by the normal court process of the service delivery system are a major problem and the third-party justice system seems to be useful. Most civil issues are now being handled in a spirit of arbitration and mutual consent, and this helps to resolve issues in the most practical way possible.


Provisions for alternative dispute resolution are changing over time, especially in India. With the growth of arbitration processes in India, which could help resolve the unnecessary burden of court responsibility over the next few years, new institutions are offering their services in India.


Let’s hope the problem is solved, and that the situation gets better over time and that the justice system will work better and work in these different ways to do the same.

REFERENCE-

Aishwarya Says:

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