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Amardeep Srivastava (Senior Law Officer)     21 July 2016

Amended arbitration and conciliation act, 1996

Can anyone point out the difference between the term "employee" used in item number 31 of the 5th schedule and item number 1 of the 7th schedule in the amended Arbitration and Conciliation Act. Considering both the provisions whether an employee seperated from his employer more than 3 years back become an arbitrator in a dispute involving his former employer?


 5 Replies

JustAdvisor (IT)     21 July 2016

the way i interpret it is, as per fifth schedule if the arbitrator is a former employee of parties (within 3 years) he must disclose in writing. as per 7th schedule though if he is an existing employee of parties or counsel he is absolutely barred from being an arbitrator. differences are - former vs existing, parties only vs parties + counsel, declaration vs absolute bar.
1 Like

Amardeep Srivastava (Senior Law Officer)     30 July 2016

Thank you. I also read it that way initially. But I am concerned with the expression "any other past or present" in item number 1 of schedule 7. Would it not apply to employee, consultant and adviser also?

G D Rajan (Advocate - High Court Madras)     01 August 2016

V schedule.

Relationship between arbitrator and party and others involved in the arbitration.

  1. The Arbitrator had been associated within the past three years with a party or an affiliate of one of the parties in a professional capacity, such as a former employee or partner.
VII Schedule.
Arbitrators relationship with the parties or counsel.
1.The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party.
In my understanding the Amendment Ordinance 2015  differences above categories with following.

1) Employee, X Consultant, Advisor.
2) Last three years X Past or Present
3) Related with parties and others related to the parties. X Parties or Counsel

Note: Red color is Vth Schedule. Orange VII th Schedule.

Bhargava S.K. (Legal Practitioner & Vice Chairman HRIDAI)     27 March 2017

The sole objective of the amendment is that the Arbitrator should be an independent person not influenced or biased by the previous bondage.

The parties hitherto were appointing their own Officers as Arbitrators and they seldom gave awards aganst their employer for one or the other reasons.


Vinod shah (legal assistance for victims of system.     21 May 2017

In this context the expert may also deal with the in FIFTH SCHEDULE  at no-24 that the arbitrator had dealt with similar matters for one of the parties is BIASED.

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