This is the second in the Role of a Judge series. Please click here to read the first.
RULE AGAINST BIAS is one of the fundamental principles of natural justice which applies to all judicial and quasi-judicial proceedings. The requirement of impartiality is sometimes expressed in the form nemo judex in re sua or no man should be judge in his own cause.
A judge cannot be considered competent to adjudicate a matter in which he is directly or indirectly interested. The question, then, is what constitutes interest in light of the amended provisions of the Arbitration and Conciliation Act, 1996 (‘1996 Act’).
A plain reading of the 1996 Act demonstrates that the principles of natural justice is an inalienable part of the arbitral proceedings. The 1996 Act lays down a clear process to be followed - starting with the appointment of an arbitrator, followed by the passing of an arbitral award, and finally, the process to challenge and/or enforce the same.
Section 12 of the 1996 Act
Independence and impartiality of the arbitrator are the hallmarks of any arbitration proceedings. Section 12 of the 1996 Act has the objective to induce neutrality of arbitrators viz their independence and impartiality.
Section 12 of the 1996 Act mandates that an arbitrator “…shall disclose in writing any circumstances,-(a)such as the existence either direct or indirect, of any past or present relationship with or interest in any of the parties or in relation to the subject-matter in dispute, whether financial, business, professional or other kind, which is likely to give rise to justifiable doubts as to his independence or impartiality…”.
