Section 10: Number of arbitrators

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1996
Statutory Defined Terms in this Section: (Click any term for official legal definition)

Legal Commentary & Landmark Judgments: Section 10

Section 10 of the Arbitration and Conciliation Act, 1996 regulates the number of arbitrators, leaving parties free to determine any odd number of arbitrators, and establishing that failing such determination, the tribunal shall consist of a sole arbitrator.

  • Freedom to Determine Number: The parties are free to determine the number of arbitrators, provided that such number shall not be an even number.
  • Default Rule of Sole Arbitrator: Section 10(2): Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole arbitrator.
  • Even Number Agreement Not Void: An agreement specifying an even number (e.g., two arbitrators) is not void; it is interpreted as an agreement for each party to nominate one arbitrator, who shall appoint a third presiding arbitrator (umpire) under Section 11(3).
Key Landmark Precedents:
  • Narayan Prasad Lohia v. Nikunj Kumar Lohia, (2002) 3 SCC 572: The Supreme Court authoritatively held that Section 10 is a derogable provision; an arbitration agreement providing for two arbitrators is valid, and if parties proceed without objection, the award cannot be challenged on the ground of an even-numbered tribunal.
  • M.M.T.C. Ltd. v. Sterlite Industries (India) Ltd., (1996) 6 SCC 716: The Supreme Court affirmed that an agreement providing for two arbitrators implies that the two arbitrators shall appoint a third arbitrator under Section 11(3).
Courtroom Practice & Strategic Litigation Guidance:

When drafting arbitration clauses, always specify an odd number (ordinarily a sole arbitrator for claims under 10 Crores, and a three-member tribunal for complex multi-jurisdictional claims) to avoid default litigation under Section 10(2).