Powers, Duties and liabilities of Arbitral Tribunal
Powers, Duties, and Liabilities of Arbitral Tribunal
1. Powers of the Arbitral Tribunal
The arbitral tribunal is endowed with extensive powers to conduct the arbitration efficiently and fairly:
a) General Procedural Powers (Section 19 and 23 of the Act)
Conduct proceedings as it thinks fit: The tribunal can decide the procedure to be followed (subject to agreement and natural justice).
Order discovery of documents: The tribunal may require parties to produce documents, evidence, or other materials.
Summon witnesses: The tribunal can require witnesses to appear and give evidence.
Administer oaths and affirmation: The tribunal can administer oaths to witnesses.
Determine the admissibility and relevance of evidence: The tribunal decides what evidence is relevant and admissible.
b) Interim Measures (Section 17)
The tribunal can order interim reliefs like injunctions, preservation of assets, or security for costs to protect the parties' interests before the final award.
c) Jurisdictional Powers (Section 16)
The tribunal has power to rule on its own jurisdiction, including objections about the existence or validity of the arbitration agreement.
d) Power to extend time (Section 29A)
The tribunal can extend the time for making the award if agreed by the parties.
2. Duties of the Arbitral Tribunal
The tribunal must perform its functions conscientiously and fairly:
a) Fairness and Impartiality
The tribunal must act impartially and independently.
Avoid any conflict of interest.
Give each party a reasonable opportunity to present their case.
b) Conduct of Proceedings
Ensure the proceedings are conducted efficiently and without undue delay.
Decide procedural matters in a manner that respects natural justice.
c) Obligation to Render Award
The tribunal must make an award within the prescribed time frame (usually 12 months from the date of appointment, extendable by parties or courts).
The award should be final and binding, deciding the dispute on its merits.
d) Confidentiality
Maintain the confidentiality of the arbitration proceedings (this duty arises from implied terms and sometimes explicitly in the arbitration agreement or rules).
3. Liabilities of the Arbitral Tribunal
Generally, arbitral tribunals enjoy immunity from suit for acts done in the course of arbitration, but there are certain limits:
a) Immunity from Civil Liability
The tribunal members are protected from being sued for damages for acts done in good faith during arbitration.
This immunity encourages impartial and fearless decision-making.
b) Liability for Misconduct or Malpractice
If the arbitrator acts with bias, fraud, corruption, or misconduct, or breaches fundamental duties, they may be challenged and held liable.
Such acts can lead to the setting aside of the award or disciplinary action.
c) Contractual or Professional Liability
If an arbitrator breaches express contractual duties or professional standards, they may be liable under professional ethics or arbitration institution rules.
4. Relevant Sections of the Arbitration and Conciliation Act, 1996 (India):
| Aspect | Section(s) |
|---|---|
| Powers of Tribunal | Sections 16, 17, 19, 23, 29A |
| Duties of Tribunal | Implied through Sections 19, 23 and case law |
| Immunity and Liability | Not expressly codified, derived from case law and principles of justice |
5. Important Case Law
Bharat Aluminium Co. v. Kaiser Aluminium Technical Service, Inc. (2012) 9 SCC 552
Emphasized tribunal's duty to act fairly, impartially, and without delay.
S.B.P. & Co. v. Patel Engineering Ltd., AIR 2005 SC 2427
Explained the tribunal’s broad powers and discretion in procedure and evidence.
Soleimany v. Soleimany [1999] 2 Lloyd’s Rep 403 (English case)
Arbitrators have immunity from suit in respect of acts done in the discharge of their duties.
6. Summary Table
| Aspect | Description |
|---|---|
| Powers | Control procedure, interim measures, rule on jurisdiction, extend time |
| Duties | Fairness, impartiality, timely award, maintain confidentiality |
| Liabilities | Immunity from suit for good faith acts; liable for misconduct/fraud |
In brief:
The arbitral tribunal has broad powers to manage the arbitration effectively but must act fairly and impartially, respecting natural justice. While arbitrators enjoy immunity for acts done in good faith, they can be held accountable for misconduct or bad faith, which can undermine the arbitration award's validity.
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