Section 12 Arbitration Act 1996 (GROUNDS FOR CHALLENGE) of arbitrators:
Answer & Solution
Correct answer: C.
1. Section 12 Arbitration and Conciliation Act 1996 provides GROUNDS FOR CHALLENGE of arbitrators:
2. (1) When approached for appointment, arbitrator must DISCLOSE in writing any circumstances that may give rise to justifiable doubts as to his independence or impartiality.
3. (3) An arbitrator may be CHALLENGED if:
4. (a) circumstances exist that give rise to JUSTIFIABLE DOUBTS as to his INDEPENDENCE OR IMPARTIALITY;
5. (b) he DOES NOT POSSESS the qualifications agreed to by the parties.
6. 2015 AMENDMENT introduced:
7. (i) FIFTH SCHEDULE — circumstances giving rise to justifiable doubts about independence/impartiality (e.g., relationship with parties, counsel);
8. (ii) SEVENTH SCHEDULE — categories of persons INELIGIBLE for appointment (close family, employee of party, regular advice within last 3 years, etc.);
9. (iii) Section 12(5): a person whose relationship falls under Seventh Schedule is INELIGIBLE for appointment unless parties waive in writing after dispute arose.
10. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 12 (substantially amended 2015)_
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