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CS Professional · Arbitration, Mediation and Conciliation · Challenge to Award and Appeals

Lotus Retail and Vindhya Foods agreed in their contract that any challenge to an arbitrator will be decided by a named arbitral institution within thirty days of a written objection. Lotus later objects to an arbitrator. Which statement is correct under Section 13?

The parties' agreed procedure governs. Section 13(1) leaves the parties free to agree how an arbitrator may be challenged, and the default route in Section 13(2) applies only when there is no such agreement. The agreement needs no Court approval.

  1. AThe agreed procedure is invalid because Section 13(2) is mandatory
  2. BThe parties are free to agree on a challenge procedure, and Section 13(2) applies only if there is no such agreementCorrect
  3. CSection 13(2) applies together with the agreed procedure, giving two parallel routes
  4. DThe agreed procedure applies only if the Court approves it

Explanation

Section 13(1) lets the parties agree on a procedure for challenging an arbitrator, subject to sub-section (4). Section 13(2) operates only 'failing any agreement', so the fifteen-day written statement to the tribunal is the default. If the agreed challenge is unsuccessful, the tribunal continues and makes the award under Section 13(4).

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