Before commencing the arbitration proceedings, the Parties may mutually determine the procedure for appointing the arbitrator. However, if the parties have failed to appoint an arbitrator for conducting arbitration proceedings for some reason then the court has the power to appoint the arbitrator in those cases.
Finalization of an Arbitrator 's Mandate
Under Section 14 the authority of an arbitrator shall be terminated if:
- The arbitrator shall be de jure or de facto unable to carry out his functions or shall fail to act without delay for another reason and shall withdraw from his office;
- The parties to the arbitration decide to end the order of an arbitrator.
In addition, Section 15 provides some additional circumstances that will terminate an arbitrator 's mandate, that is:
- If for whatever reason he withdraws from office;
- By or in compliance with parties ' Agreement.
Section 15 also deals with the dismissal of the arbitrator, and states:
- Following an arbitrator 's termination of his mandate, a substitute arbitrator should be appointed in accordance with the rules previously applied.
- Any hearing under the previous arbitrator may be repeated at the arbitral tribunal's discretion, except where otherwise stated by the parties.
- Furthermore, an order or decision made before an arbitrator is dismissed would not be void simply because the arbitral tribunal framework has changed.
Putting the Arbitral Award aside
Setting the arbitral award aside in clear terms is called arbitral award challenge. Section 34 of the Arbitration and Conciliation Act, 1996, sets out the grounds for revoking the arbitral award.
- The Party was incapacitated in some form;
- The arbitration agreement is not valid under applicable law for which the agreement was subject to;
- The party was not given the proper notice of arbitrator 's appointment or the arbitral proceedings;
- The award falls outside the scope of arbitration submissions;
- The due process was not followed, while the arbitrator or tribunal was appointed;
- The award breaches Indian public policy;
- The subject matter of the conflict can not be resolved by arbitration.
If an arbitral award falls beyond the limits of the above criteria, the party may, before the competent court, file a petition u / s 34 to contest such award.
Compliance of Award
Paragraph 36 of the Arbitration and Conciliation Act, 1996 deals with implementing the award. It notes the following:
Once an award is made, the party concerned must wait 90 days before the competent court / forum, before he can file for the execution of such award.
Sec. 34 application after the 2015 amendment will not place an immediate stay on the implementation of award execution. Instead, the party seeking to set aside the award pursuant to Section 34 shall file a separate request before the court, demanding stay in the execution proceedings.
Section 35 of the Act stipulates that a reward is final and binding. It then is enforceable unless questioned under Sec. 34. In addition, if only a part of an award is challenged under section 34 of the Act, then the unchallenged part becomes enforceable under section 36 of the Act.