Number of Arbitrators
📘 Number of Arbitrators
🔹 Legal Provisions
The number of arbitrators who constitute the arbitral tribunal is primarily governed by the parties’ agreement and, in the absence of such agreement, by default rules under the Arbitration and Conciliation Act, 1996.
🔹 Key Sections
Section 10 of the Arbitration and Conciliation Act, 1996:
Number of arbitrators
(1) The parties are free to agree on the number of arbitrators.
(2) Failing such agreement—
if the number of arbitrators is not determined, the arbitral tribunal shall consist of a sole arbitrator;
if the number of arbitrators has been determined and the number is an even number, the arbitral tribunal shall consist of three arbitrators.
🔹 Explanation
Party Autonomy
The parties can decide how many arbitrators will decide their dispute. It can be:
Sole arbitrator (one arbitrator), or
Multiple arbitrators (usually three).
Default Rule (When Parties Fail to Agree)
If no number of arbitrators is agreed upon, the arbitration will be conducted by a sole arbitrator.
If parties specify a number but that number is even (e.g., 2, 4), then the tribunal will consist of three arbitrators (to avoid deadlock).
Why Odd Number?
The rationale for having an odd number of arbitrators (usually three) is to prevent deadlocks in decision-making. A tie in an even-numbered tribunal could paralyze the arbitration.
🔹 Typical Scenarios
| Agreement by Parties | Number of Arbitrators |
|---|---|
| No agreement on number | Sole arbitrator (1) |
| Agreement on odd number (e.g., 3) | As agreed (e.g., 3 arbitrators) |
| Agreement on even number (e.g., 2) | Tribunal consists of 3 arbitrators |
🔹 Appointment Process
The parties appoint arbitrators as per their agreement.
If parties fail to appoint, the court can intervene to appoint arbitrators under Section 11 of the Act.
🔹 Practical Importance
Sole arbitrator is common for simpler or lower-value disputes — faster and cheaper.
Three arbitrators are preferred in complex or high-value disputes, providing a broader viewpoint and reducing risk of bias.
🔹 Relevant Case Law
1. M/s. Vishwa Cooperative Housing Society Ltd. v. State of Maharashtra [(1998) 3 SCC 621]
Held that in the absence of an agreement, the tribunal consists of a sole arbitrator.
2. McDermott International Inc. v. Burn Standard Co. Ltd. [(2006) 11 SCC 181]
Clarified the appointment process when parties fail to agree, and the court’s role under Section 11.
✅ Summary
| Situation | Number of Arbitrators |
|---|---|
| Parties agree on number | Number as agreed |
| Parties don’t agree on number | Sole arbitrator |
| Parties agree on even number | Tribunal consists of 3 arbitrators |
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