Question
Under Section 13(3)-(4), what happens when a challenge to an arbitrator is rejected?
Solution
Explanation: Section 13(3) provides: "Unless the arbitrator who is challenged under section 13(2) withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge." Section 13(4) states: "If a challenge under any procedure agreed upon by the parties or under the procedure prescribed by sub-section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award." Importantly, if a party is dissatisfied with the tribunal's rejection of a challenge, they cannot directly approach a court; their recourse is only after a final award is made, when they can apply to set aside the award under Section 34 on grounds of arbitrator impropriety
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