Who Is an Arbitrator?

Arbitration has emerged as one of the most significant mechanisms for resolving disputes outside the traditional court system. It is widely preferred in commercial, contractual, and international disputes due to its flexibility, efficiency, confidentiality, and party autonomy. 

At the centre of this dispute resolution process stands the arbitrator, whose role is critical to the legitimacy and effectiveness of arbitration. Understanding who an arbitrator is, how such a person is appointed, and what responsibilities and qualifications are required is essential for anyone studying arbitration law.

This article provides a comprehensive explanation of the concept of an arbitrator under the Indian legal framework, with particular reference to the Arbitration and Conciliation Act, 1996.

Meaning and Definition of an Arbitrator

An arbitrator is a neutral and independent third party appointed by disputing parties to resolve a dispute through arbitration. The arbitrator performs a function similar to that of a judge but operates in a private forum created by the agreement of the parties rather than by the authority of the State.

The authority of an arbitrator flows from the arbitration agreement, which reflects the consent of the parties to submit their disputes to arbitration instead of litigation. The arbitrator hears the parties, examines evidence, applies the relevant law or contractual terms, and delivers a final decision known as an arbitral award.

An arbitral award is binding on the parties and enforceable in a court of law, subject to the provisions of the Arbitration and Conciliation Act, 1996.

Nature of the Role of an Arbitrator

The role of an arbitrator is often described as quasi-judicial in nature. While an arbitrator is not a judge appointed by the State, the functions performed closely resemble judicial functions.

An arbitrator:

• Acts as an impartial adjudicator
• Resolves disputes between parties
• Applies legal principles and contractual terms
• Delivers a binding decision

Unlike judges, arbitrators operate with greater procedural flexibility and are not strictly bound by technical rules of civil procedure or evidence unless the parties agree otherwise.

Arbitrator and Arbitration Proceedings

Arbitration proceedings are conducted in accordance with the procedure chosen by the parties. The arbitrator is required to follow this agreed procedure while ensuring fairness and equality between the parties.

The typical stages of arbitration include:

• Constitution of the arbitral tribunal
• Submission of pleadings
• Presentation of evidence
• Oral hearings, if required
• Deliberation and issuance of the arbitral award

Throughout these stages, the arbitrator manages the proceedings and ensures that the dispute is resolved efficiently and fairly.

Appointment of an Arbitrator under the Arbitration and Conciliation Act, 1996

Number of Arbitrators – Section 10

Section 10 of the Arbitration and Conciliation Act, 1996 provides that parties are free to determine the number of arbitrators, provided that the number is not even. This requirement is intended to avoid a deadlock in decision-making.

In the absence of an agreement between the parties, the arbitral tribunal shall consist of a sole arbitrator.

Procedure for Appointment – Section 11

Section 11 recognises the principle of party autonomy by allowing parties to decide the procedure for appointing arbitrators through their arbitration agreement.

Where a procedure is agreed upon, the appointment must be made strictly in accordance with it. However, problems may arise in situations where:

• No appointment procedure is agreed
• A party fails to act as required
• The two appointed arbitrators fail to appoint the third arbitrator

In a three-member tribunal, each party appoints one arbitrator, and the two appointed arbitrators appoint the third arbitrator, who acts as the presiding arbitrator.

If the appointment is not made within 30 days from the date of request, or if the procedure fails, a party may approach the Supreme Court or the High Court, or a person or institution designated by such Court, for appointment of the arbitrator.

The intervention of the court ensures that arbitration proceedings are not frustrated by non-cooperation of a party.

Qualifications of an Arbitrator

The Arbitration and Conciliation Act, 1996 does not prescribe rigid academic or professional qualifications for arbitrators. However, certain basic legal requirements must be fulfilled.

An arbitrator must:

• Be of sound mind
• Have attained the age of majority
• Not be disqualified under any law in force

The Act also allows an arbitrator to be of any nationality, unless otherwise agreed by the parties.

Party-Determined Qualifications

Parties are free to prescribe qualifications for arbitrators in their arbitration agreement. In practice, arbitrators are often chosen based on:

• Legal expertise
• Industry knowledge
• Experience in arbitration or dispute resolution
  

In technical or specialised disputes, parties frequently appoint arbitrators with domain-specific expertise, such as in construction, engineering, finance, or international trade.

Independence, Impartiality, and Neutrality

Independence and impartiality form the foundation of arbitration. An arbitrator must be free from any bias, conflict of interest, or personal interest that could affect decision-making.

An arbitrator is required to disclose any circumstances that may give rise to justifiable doubts regarding independence or impartiality. This obligation continues throughout the arbitration proceedings.

An arbitrator must not:

• Have a financial or business relationship with a party
• Be personally interested in the outcome of the dispute
• Act in a manner that compromises fairness

Failure to maintain independence may result in the arbitrator being challenged or rendered ineligible under the Act.

Duties and Responsibilities of an Arbitrator

Conducting Fair Proceedings

An arbitrator must treat parties equally and ensure that each party is given a full opportunity to present its case. This includes permitting submission of pleadings, documents, and evidence.

Evaluation of Evidence

The arbitrator examines contracts, correspondence, financial records, expert reports, and witness testimony to understand the dispute and arrive at a reasoned conclusion.

Application of Law and Contractual Terms

The arbitrator applies the governing law chosen by the parties and interprets the contractual provisions forming the basis of the dispute.

Rendering the Arbitral Award

The final responsibility of the arbitrator is to deliver a written arbitral award, stating reasons unless otherwise agreed. The award determines the rights and obligations of the parties.

Maintaining Confidentiality

Arbitration proceedings are private in nature. The arbitrator must preserve confidentiality of the proceedings, evidence, and award, particularly in commercial disputes.

Procedural Management

The arbitrator fixes timelines, schedules hearings, manages submissions, and ensures that the arbitration proceeds without unnecessary delay.

Types of Arbitrators

• Sole Arbitrator: A sole arbitrator is appointed to decide the dispute alone. This is common in disputes of lower value or complexity.
• Arbitral Tribunal: A tribunal consisting of three arbitrators is generally used in complex or high-value disputes. Each party appoints one arbitrator, and the presiding arbitrator is appointed jointly.
• Presiding Arbitrator: The presiding arbitrator leads the tribunal and ensures proper conduct of proceedings.
• Emergency Arbitrator: In urgent cases, an emergency arbitrator may be appointed to grant interim relief before the constitution of the regular tribunal.

Arbitrator versus Judge

Although both adjudicate disputes, important differences exist:

• A judge derives authority from the State, whereas an arbitrator derives authority from party consent
• Court proceedings are public, while arbitration is private
• Arbitration offers greater procedural flexibility

Despite these differences, the arbitrator performs a judicial-like function and is bound by principles of natural justice.

Conclusion

An arbitrator is the cornerstone of the arbitration process. Acting as a neutral adjudicator, the arbitrator resolves disputes through a private, flexible, and efficient mechanism chosen by the parties. The role combines legal reasoning, procedural fairness, and subject-matter expertise.

Under the Arbitration and Conciliation Act, 1996, significant emphasis is placed on party autonomy, independence, and procedural efficiency in the appointment and functioning of arbitrators.