Who Can Be an Arbitrator:
An arbitrator functions much like a judge, though their authority flows from the parties’ agreement rather than state appointment. Under the Arbitration and Conciliation Act, 1996, any person of any nationality may serve as an arbitrator unless parties agree otherwise. Safeguards exist to ensure impartiality: the Seventh Schedule, introduced through the 2015 amendment, disqualifies individuals with conflicts of interest, such as consultants, employees, or those with financial or family connections to either party. These provisions preserve the principle that arbitration must remain independent and unbiased.
Appointment and Composition:
Arbitrators can be appointed in different ways. Parties often agree to a sole arbitrator, but in more complex disputes, a panel of three may be constituted. Each side appoints one arbitrator, and the two appointees jointly select the presiding arbitrator. To avoid stalemates, the law prescribes an odd number of arbitrators. If parties fail to agree, courts can step in under Section 11 of the Act to make an appointment, ensuring that the arbitral process is not derailed by deadlock.
Responsibilities During Proceedings:
The duties of an arbitrator extend beyond issuing an award. They manage procedural timelines, decide on applications, hear evidence, and ensure both sides have equal opportunity to present their case. Arbitrators apply the relevant law to the facts, interpret contracts, and deliver a reasoned award that binds the parties. These awards are enforceable like court judgments and are recognized internationally. Another critical aspect is expertise: parties often choose arbitrators with technical knowledge in industries like construction, energy, or finance, ensuring that the decision-maker understands both legal and commercial complexities.
The Role of Arbitration Lawyers:
While arbitrators provide neutrality and decision-making, arbitration lawyers form the strategic backbone of the process. Their work starts at the contract stage, where they draft arbitration clauses designed to prevent future ambiguity. Once disputes arise, lawyers take charge of case strategy, gathering evidence, and preparing pleadings.
During hearings, arbitration lawyers act as advocates - examining witnesses, presenting legal arguments, and persuading the tribunal. They also navigate procedural rules of arbitral institutions such as ICC, SIAC, or LCIA, ensuring compliance and efficiency. After an award is delivered, lawyers assist in enforcement proceedings before domestic courts or advise on limited grounds for challenging the award. Their role blends litigation skills with commercial acumen, often guiding clients toward settlement when it is strategically sound.
Why Their Role Matters:
The importance of arbitrators and arbitration lawyers becomes clear when placed against India’s judicial backdrop. A NITI Aayog report in 2019 projected that, at the then prevailing rate of disposal, it would take over 300 years to clear India’s backlog of cases. Arbitration provides a practical solution by diverting appropriate disputes from congested courts, thereby reducing delays and costs. Courts themselves have encouraged this shift, emphasized impartial appointments and enforced arbitral awards to build confidence in the process.
Arbitrators and arbitration lawyers together form the foundation of effective dispute resolution outside the courts. Arbitrators ensure fairness, independence, and subject-matter expertise, while lawyers craft and present the case in a manner that best protects their client’s interests. This synergy explains why arbitration has evolved into a trusted and efficient mechanism, delivering justice with speed, neutrality, and commercial sensitivity.