Question

The following categories of persons are ineligible to be appointed as arbitrators:

• A. Arbitrator has a significant financial interest in one of the parties or the outcome of the case.
• B. Arbitrator has within the past three years received more than three appointments by the same counsel or the same law firm.
• C. Close family member of the arbitrator has a significant financial interest in the outcome of the dispute.
• D. Arbitrator regularly advises the appointing party or its affiliate even without deriving a significant financial income therefrom.

Hint:

Arbitrators must maintain both actual and perceived independence to uphold the fairness of proceedings.

Answer 1

The Correct Option is A

Step 1: Legal framework.
The Fifth Schedule of the Arbitration and Conciliation Act, 1996, outlines situations giving rise to justifiable doubts as to independence and impartiality.

Step 2: Analysis of options.
(a) Direct financial interest clearly compromises impartiality.
(b) Repeated appointments from the same source may indicate dependence or bias.
(c) Family interest creates a conflict of interest.
(d) Regular advisory roles to a party compromise independence even without financial gain.

Step 3: Conclusion.
All the listed circumstances create valid grounds for ineligibility. \[ \boxed{Answer: All listed options are ineligible} \]