Meaning
Independent panels of experts receive the authority to hear disputes and issue binding decisions based on evidence provided by the parties. An arbitral tribunal typically consists of one or three members selected for their specific knowledge of the industry or law relevant to the case. This body remains distinct from a permanent court because its existence is tied to the specific dispute it was formed to resolve.
Once the final award is signed and delivered, the mandate of the panel expires.
Selection Logic
Appointment procedures usually allow each party to nominate one member, with the third member chosen by the nominees or an appointing authority. The arbitral tribunal must remain impartial throughout the life of the case. Disclosure of any potential conflict of interest happens at the start of the process to maintain the integrity of the record.
Failure to ensure independence can lead to the setting aside of the final decision by a court.
Decisional Authority
Power to rule on its own jurisdiction belongs to the panel under the principle of competence-competence. This means the arbitral tribunal decides whether the arbitration agreement is valid and whether the specific dispute falls within its reach. Such authority prevents one party from stalling the process by filing a court action to challenge the scope of the agreement.
The decision on jurisdiction is often the first formal act recorded in the proceedings.
Operational Conduct
Management of the calendar and the evidentiary schedule falls to the chair of the group. Throughout the hearing, the arbitral tribunal issues procedural orders that direct the flow of documents and the timing of witness statements. These orders create a timeline of actions that supports the finality of the award.
The panel ensures that each side has an equal opportunity to present its case before the record closes.
