Supreme Court Examines Arbitration Nomination Eligibility

The Supreme Court has begun hearings on whether an ineligible person can nominate an arbitrator under the Arbitration and Conciliation Act, 1996. A five-judge bench, led by Chief Justice D Y Chandrachud, is deliberating the independence of arbitral tribunals and evaluating past court decisions on the issue.

The Supreme Court on Wednesday started hearing arguments on whether a person ineligible to be an arbitrator can nominate another as one, under the Arbitration and Conciliation Act, 1996.

A five-judge constitution bench led by Chief Justice D Y Chandrachud is contemplating the independence of arbitral tribunals. Justices Hrishikesh Roy, P S Narasimha, J B Pardiwala, and Manoj Misra noted that the perception of an independent adjudicator is crucial at the arbitration outset.

Senior advocate N K Kaul argued that ineligible individuals shouldn't be able to nominate arbitrators, while Senior advocate Gourab Banerji highlighted the importance of fair, independent, and impartial tribunals. The hearing, which referred to prior Supreme Court decisions and the Law Commission's 246th report, will continue on Thursday.