Law Of Bias In Arbitrators - Certain Interesting Aspects

Introduction

Independence and impartiality of the arbitrator is the basic requirement of any arbitration proceeding. Rule against bias is one of the fundamental principles of natural justice which applies to all judicial and quasi-judicial proceedings. The genesis of this principle is the necessity of an arbitrator appointed in terms of the contract and by the parties to the contract to be independent of the parties. His functions and duties require him to rise above the partisan interest of the parties and not to act in a manner so as to further the particular interests of either party.

Interestingly, in the Arbitration and Conciliation Act, 1996 ("the Act") there was no definite law to ensure that an arbitrator appointed to adjudicate the disputes between parties is indeed unbiased. The amendments made to the Act vide the Arbitration and Conciliation (Amendment) Act, 2015 ("the Amendment Act"), inter alia, attempted to introduce safeguards which warrant