Arbitrator Selection Process

23 March
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Arbitrator Selection Process: Understanding the Factors in Arbitrator Selection

Arbitration is a special way to solve problems without going to court. Instead of judges, arbitrators make decisions. It is very important to pick the right arbitrators. They need to be experts, fair, and independent. This helps ensure fair results. A key stage in the arbitration process is the appointment of arbitrators, which guarantees that each party has an opportunity to participate in the composition of the tribunal. Let’s understand the arbitrator selection process in easy way and explore the various mechanisms involved.

Nomination and Appointment of the Tribunal:

Article 12 of the arbitration rules states that the Arbitration Court is responsible for choosing arbitrators. If the arbitration agreement says that a particular party can choose an arbitrator, that party will nominate someone, and the Court will appoint them. The Court considers things like how the nomination process was agreed upon, the type of problem, the parties' nationality, where they are, what language they speak, and other important factors.

Sole Arbitrator:

When a sole arbitrator is required, the parties may jointly nominate the arbitrator within a specified time limit or as granted by the Centre. If the parties fail to make a joint nomination, the Arbitration Court steps in to appoint the sole arbitrator.

Three-Member Tribunal:

In a three-member tribunal, each party nominates a co-arbitrator, and the Arbitration Court officially appoints them using the required rules and procedure. The appointment of the chairperson is either through an agreed mechanism or, in the absence of one, through the agreement of the co-arbitrators. If the co-arbitrators fail to agree on a chairperson within a set timeframe, the Arbitration Court takes charge of appointing the chairperson.

Multiple Parties and Joint Nominations:

In cases involving multiple parties, each party jointly nominates an arbitrator for a three-member tribunal. However, if the parties are unable to agree on joint nominations or a method for the tribunal's constitution, the Arbitration Court appoints the respective arbitrator(s). The chairperson is appointed following the process outlined earlier.

Agreed Mechanism for Nomination:

If the parties have agreed upon a mechanism for the nomination of the tribunal, it is followed, provided it is compatible with the rules and capable of operating at the time. However, if the mechanism is not viable or compatible, the Arbitration Court is responsible for the appointments.

Irrevocable Waiver:

If a party doesn't choose an arbitrator within the given time, they lose the chance to do so. In that situation, the Arbitration Court picks an arbitrator for them.

The Arbitration Court will only choose the arbitrator(s) if the full payment for the arbitration costs has been made in advance.

Alternative Appointment Process:

If the parties fail to jointly nominate a sole arbitrator and have not stipulated any appointment mechanism, they may agree to the alternative appointment process outlined in Article 13. The Centre provides each party with a list of at least three suitable candidates, and each party may add up to three names of their own. The parties rank the candidates in order of preference, and from the mutually approved list, the candidates are invited in that order until one accepts to serve as the arbitrator. The Arbitration Court must approve the nomination.

Fair arbitration depends on selecting the appropriate arbitrator. In order to select arbitrators who are both qualified and unbiased, the Arbitration Court considers many aspects, including the nature of the dispute and the parties involved. Understanding how this selection works gives parties trust in the fairness of arbitration.

Alqada believes in supporting clients on each step during the arbitration process. There are following list of Arbitration's articels you can know more about Arbitration law by visiting these links.