Why the Wrong Arbitrator Can Derail Everything

Most people don’t think much about who decides their arbitration. They assume it’s a neutral judge-like figure, often “someone with gravitas.”

But unlike courts, arbitration gives you some control over who presides and misusing that control (or not exercising it at all) can cost you everything.

Let me explain.

1. What Section 11 Really Means

Section 11 of the Arbitration and Conciliation Act empowers parties to approach the High Court or the Supreme Court to appoint arbitrators when there’s a deadlock or silence in the contract.

That sounds procedural but the implications are tactical.

It decides:

• Who interprets your contract.

• Whether technical facts are correctly understood.

• How delays, adjournments, and submissions are treated.

• Whether an over-aggressive or passive stance is tolerated.

2. Real Story: An Infrastructure Contractor’s Missed Window

I once saw a case where legal representation was sought after the arbitrator had already been appointed by the opposing party. No objection had been raised within the required 15-day window.

Turns out, the arbitrator was a retired employee of the other side’s parent company. Not directly conflicted—but certainly not neutral in spirit.

What happened?

• Every objection raised by the counter party got processed slower.

• Counterclaims were met with scrutiny that felt uneven.

• The entire tone of the proceedings felt weighted.

And yet, because the appointment hadn’t been challenged in time under Section 11, the counterparty was stuck.

3. Founder Dispute: The Solo Arbitrator Trap

In a startup co-founder breakup I handled, both parties had agreed on a single arbitrator during happier days.

Now in dispute, the co-founder who was a senior lawyer himself pushed for a “fast-track” arbitration with that same arbitrator who he had a prior mentor relationship with.

It wasn’t illegal. But it was unfair.

The client hadn’t realized she could still challenge the appointment or insist on a neutral re-evaluation under Section 11, especially since the original appointment wasn’t triggered via notice.

The objection was filed just in time.

4. Lessons You Can Use

1. Don’t sleep on deadlines. Once 15 days pass after an appointment, courts are unlikely to interfere even if the arbitrator is clearly biased.

2. Use your appointment power wisely. You can shape the tribunal’s attitude by choosing someone who understands your sector.

3. Push for disclosures. Arbitrators must declare conflicts of interest. Demand full disclosure under the Fifth and Seventh Schedules.

4. Go to court when needed. Filing a Section 11 petition is sometimes the smartest delay you’ll make because it prevents bigger damage later.

Arbitration is supposed to feel faster, fairer, and more private than litigation. But if you let the wrong person preside, none of that holds true. So don’t rush the start. Because the person at the table changes the entire conversation.