(1) When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose in writing any circumstances likely to give rise to justifiable doubts as to his independence or impartiality.
(2) An arbitrator, from the time of his appointment and throughout
the arbitral proceedings, shall, without delay, disclose to the parties
in writing any circumstances referred to in sub section (1) unless they have already been informed of them by him.
(1) Subject to sub- section (4), the parties are free to agree on a procedure for challenging an arbitrator.
(2) Failing any
agreement referred to in sub- section (1), a party who intends to
challenge an arbitrator shall, within fifteen days after becoming aware
of the constitution of the arbitral tribunal or after becoming aware of
any circumstances referred to in subsection (3) of section 12, send a
written statement of the reasons for the challenge to the arbitral
(3) Unless the
arbitrator challenged under sub- section (2) withdraws from his office
or the other party agrees to the challenge, the arbitral tribunal shall
decide on the challenge.
(4) If a challenge
under any procedure agreed upon by the parties or under the procedure
under sub- section (2) is not successful, the arbitral tribunal shall
continue the arbitral proceedings and make an arbitral award.
(5) Where an arbitral award is made under sub- section (4), the
party challenging the arbitrator may make an application for setting
aside such an arbitral award in accordance with section 34.
an arbitral award is set aside on an application made under sub-
section (5), the Court may decide as to whether the arbitrator who is
challenged is entitled to any fees.
COMMENTS: (1) As per section 12(4) of the Arbitration and Conciliation Act, 1996 (‘the Act’) a party may challenge EVEN AN ARBITRATOR APPOINTED BY HIM,only for reasons, of which he becomes aware after the appointment has been made.
(2) If a challenge under the procedure under sub-section 13(2) is not
successful, and IF THE PARTY IS DISTRUSTFUL OF THE INTEGRITY OF THE
ARBITRATOR, the party challenging the arbitrator may make an
application for setting aside such an arbitral award in accordance with
(3) If the accusation of the party is material and genuine, there is
every possibility that the award would be set aside. Because, as per
section 12(1) the Arbitrator is OBLIGED TODISCLOSE IN WRITING ANY CIRCUMSTANCES LIKELY TO GIVE RISE TO JUSTIFIABLE DOUBTS AS TO HIS INDEPENDENCE OR IMPARTIALITY from the time of his appointment; and further throughout the arbitral proceedings as per section 12(2) of the Act.
Note: the views expressed are my personal and a view point only.