Court of Arbitration: Establishment, Qualification & Removal

A Court of Arbitration, or arbitral tribunal, is set up under the Arbitration and Conciliation Act, 1996 to resolve disputes outside courts. Parties choose arbitrators based on the arbitration agreement, often requiring expertise in law or the relevant field. Arbitrators must be impartial and independent. They can be removed if they lack qualifications, show bias or fail to act fairly. The Act allows parties to challenge an arbitrator’s appointment under Section 12 and courts can step in under Section 14 to end their mandate, ensuring a fair and efficient arbitration process.

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Establishment of Indian Council of Arbitration

Part IA of the Arbitration and Conciliation Act, 1996 talks about the Court of Arbitration which is the Indian Council of Arbitration. This part has been inserted by the Arbitration and Conciliation (Amendment) Act, 2019. Section 43B states that the Central Government shall establish the Indian Council of Arbitration to perform and execute the duties and discharge the functions under this Act. The Head Office of the Indian Council of Arbitration is in Delhi. With prior approval of the Central Government, the council may establish offices in other places in India. 

Composition of the Council

Section 43C of Arbitration and Conciliation Act states the composition of the council. The council shall have

• A Chairperson;

• Four members (two members and two ex officio members)

• One Part-time member,

• One member-secretary (Chief Executive Officer)

Here, the chairperson is appointed by the Central Government, who must consult with the Chief Justice of India. The chairperson is a position of responsibility, hence there are certain qualification criteria that need to be met. The following are the qualifications of the chairperson:

• A judge of the Supreme Court; or

• Chief Justice of a High Court; or

• A judge of a High Court or an eminent person, who have the knowledge and relevant experience in the conduct or administration of arbitration.

The Chairperson and Members of the Council, other than ex officio members, shall hold the office for a term of three years, from the date on which they enter upon their office.

No Chairperson or member, other than the ex officio member, shall hold office as such after he has attained the age of 

• seventy years for chairperson; and

• Sixty-seven years in case of the member.

Dive into Arbitration Conciliation and Alternative Dispute Resolution

Duties and Functions of the Council

Section 43D of the Act talks about the duties and functions of the council. The section provides that it shall be the duty of the council to take all such measures as may be necessary to promote and encourage arbitration, mediation, conciliation and other alternative dispute resolution mechanisms and for that purpose to frame policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration. The following are functions of the Council

1. The Court of Arbitration assists in appointing arbitrators when parties fail to come to a mutual decision. It is done to ensure that the arbitration process moves forward efficiently.

2. The council can grant interim relief to protect party's interests during arbitral proceedings.

3. They ensure that arbitral awards are enforceable, giving them the same legal standing as court judgements. 

4. The Arbitration and Conciliation Act, 1996, limits judicial intervention. The courts can step in under specific circumstances, such as setting aside an award on grounds like public policy violations.

5. Courts can assist arbitrators in gathering evidence. It helps in giving a true and fair arbitration process, free from any malice and biasness.

Read about Mediation and Arbitration Lawyers

Resignation and Removal

Section 43F of the act talks about the resignation of chairperson or member. It states that the chairperson or the full-time or part-time member may resign from their position at any time by giving notice. The resignation notice is to be directed to the Central Government and must be in writing.

Section 43G talks about the removal of a Member of the Council. It states that the Central Government may remove a Member from his office on the following grounds:

• If he is an undischarged insolvent; or

• He has engaged in any paid employment, during his term of office at any time (except Part-time Member); or

• He has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

• He has acquired such financial or other interest and is likely to affect prejudicially his functions as a Member; or

• He has abused his position to render his continuance in office prejudicial to the public interest, or

• He has become physically or mentally incapable of acting as a Member.

Chief Executive Officer

The Chief Executive Officer is talked about in Section 43M. The document says that the Council will have a Chief Executive Officer who will be in charge of running the Council day-to-day. There will be a Secretariat for the Council. The number of officers and employees of the secretariat may be prescribed by the Central Government.

Functions of the Chief Executive Officer

As per Section 43M of the Arbitration and Conciliation Act, 1996, the CEO is responsible for the day-to-day administration of the Arbitration Council of India along with the functions given below: 

• Oversees daily administration of the ACI, including managing the Secretariat.

• Executes decisions made by the ACI to ensure smooth operations.

• Supports implementation of policies and guidelines for arbitration standards.

• Assists in accrediting arbitration institutions and promoting arbitration.

• Focuses on administrative duties, not dispute resolution.

Summing Up

The Court of Arbitration or as it may be called the Arbitration Council, is like a committee of several qualified people that handles the arbitration, conciliation and other alternative dispute resolution mechanisms. The council consists of chairperson, and members. The relevant section of the act state the provisions of the council. From qualification to removal, every procedure is prescribed in the act through the 2019 Arbitration and Conciliation Amendment Act.

Related Posts:

• Arbitration and Conciliation Act

• What are Conflict Resolution Techniques

• Arbitration Vs. Conciliation

• Arbitration Act 2015 Amendment

• Section 8 of the Arbitration and Conciliation Act

Court of Arbitration: FAQs

Q1. What is the meaning of the Court of Arbitration?

A Court of Arbitration is a group of arbitrators chosen by parties to settle disputes privately outside regular courts, based on an arbitration agreement.

Q2. What is an arbitration court?

An arbitration court, or arbitral tribunal, is a panel of impartial experts who resolve disputes like contract issues, as agreed by the parties, under laws like the Arbitration and Conciliation Act, 1996.

Q3. Where is the Court of Arbitration?

The Court of Arbitration’s location, called the seat, is chosen by the parties or tribunal and determines the procedural laws and overseeing courts.

Q4. What is the ICC Court of Arbitration?

The ICC Court of Arbitration is a global body under the International Chamber of Commerce that oversees international arbitration, ensuring fair and efficient dispute resolution.

Q5. How many Arbitration Institutions are there in India?

There are around 35 arbitration institutions across the country. It includes the Delhi Arbitration Centre, the International Centre for Arbitration in Mumbai and the Nani Palkhivala Centre in Chennai.