In short. At DIAC, arbitrators come from the Centre's own panel. If your clause provides for one arbitrator, each side sends in five panel names and anyone on both lists gets appointed. No match, and the DIAC Chairperson decides. With three arbitrators, each side nominates one and those two pick the presiding arbitrator within 21 days. Most tribunals are in place one to three months after the request. If you've got a DIAC clause, or a court has sent your case there, start your shortlist now. Who sits on the tribunal shapes everything that follows.
Is this your situation?
- You're about to file at DIAC. Or a courier has just delivered the other side's request for arbitration to your office.
- DIAC has written asking for five names from its panel. You've opened the panel page and there are hundreds of them.
- Your clause says three arbitrators. The board wants to know by Friday who your nominee will be.
- The other side has put forward a retired judge, and someone in your team thinks he's sat on their cases before.
- Your contract says the buyer's General Manager appoints the arbitrator. You're wondering if that still holds after 2024.
- The Delhi High Court has named an arbitrator in a Section 11 order and said the case will run under DIAC's rules.
- There are four parties, two on each side, and nobody can agree who gets to nominate.
The appointment process in brief
Appointments at DIAC follow the DIAC (Arbitration Proceedings) Rules, 2023. The exceptions are where the parties agreed some other method, or a court has already named the arbitrator. Ordinarily the arbitrator comes from the DIAC Panel of Arbitrators, which the Centre's Arbitration Committee maintains. If the clause is silent on numbers, it's a sole arbitrator (Rule 8.2).
With a sole arbitrator, the claimant puts five panel names in its request and the respondent puts five of its own in its response, usually after its lawyers have spent a week arguing about who to include. If a name shows up on both lists, that person gets appointed (Rule 8.3). If nothing matches, the Chairperson of the Arbitration Committee, or a Sub-Committee, makes the appointment (Rule 8.4). With three arbitrators, each side nominates one from the panel, and the two nominees pick the presiding arbitrator within 21 days. And if a side doesn't nominate, or the two can't agree, the Chairperson appoints within 21 days (Rules 8.5 and 8.6).
Nobody takes up the job without first giving a written disclosure under Section 12 of the Arbitration and Conciliation Act, 1996 (the Act). It covers any connection with the parties, the lawyers or the dispute (Rule 7.1). That disclosure is the most useful document you'll see at this stage. It's also the one people skim. Don't.
The rules that decide who hears your case
Section 10, Arbitration and Conciliation Act, 1996
The parties can choose how many arbitrators, as long as it isn't an even number. If they don't choose, the Act says one. The DIAC Rules add a ceiling: never more than three (Rule 8.1). Simple enough.
Section 11(2) of the Act and Rule 1.2, DIAC Rules, 2023
The parties are free to agree on how arbitrators get appointed. A DIAC clause is exactly that kind of agreement, because it adopts the Centre's rules, appointment method included. The Rules also kick in when a court directs that the arbitration be conducted under them.
Rules 4.1(k) and 5.1(e), DIAC Rules, 2023
The claimant's request has to include its five panel names (for a sole arbitrator) or its one nominee (for three), unless the parties agreed otherwise or a court has named the arbitrator. Before naming a nominee, the claimant must get that person's consent and confirm they aren't disqualified under Section 12(5). The respondent does the same in its response, due within 30 days of receiving the request (Rule 5.1). If the agreement calls for a qualification no panel member has, the parties can nominate someone from outside the panel.
Rules 7, 8 and 9, DIAC Rules, 2023
Rule 7 requires a written Section 12 disclosure before anyone accepts. Rule 8 lays out how sole and three-member tribunals are formed, with 21-day windows. Rule 9 handles multi-party cases. All parties must jointly nominate a sole arbitrator, and for a three-member tribunal the claimants together nominate one and the respondents together nominate one.
Sections 12 and 13 of the Act; Rules 10 and 11, DIAC Rules, 2023
An arbitrator has to be independent and impartial. The Fifth Schedule to the Act lists situations that raise justifiable doubts. The Sixth Schedule is the disclosure form. The Seventh Schedule lists relationships that make someone ineligible under Section 12(5). Under the DIAC Rules, a challenge goes to the Centre within 14 days of the appointment notice or of learning the facts, and it's meant to be decided within 60 days. Rule 11 deals with replacing an arbitrator who dies, resigns, is removed or isn't moving the case along in time.
The DIAC panel: who's on it
The Centre's Arbitration Committee draws up the DIAC Panel of Arbitrators and keeps it current. DIAC itself was set up by the Delhi High Court, started work in 2009, and runs from the High Court premises in New Delhi under the High Court's supervision. You'll find retired judges of the Supreme Court, High Courts and district courts on the panel. Senior advocates and practising advocates too, plus technical and financial people like engineers and chartered accountants. Each entry describes the member's background, and those backgrounds differ a great deal. Treat the panel as a pool to choose from carefully. They aren't interchangeable.
It's on the DIAC website, and it changes. So look at it on the day you prepare your list, not at a printout someone in accounts saved last year. Go through each profile for the kind of work the person handles. A construction claim built on measurement disputes plays out very differently before a retired judge than before an engineer. Neither is automatically right. It depends on the dispute.
Being on the panel doesn't mean someone's free to take your case. Availability, existing conflicts and their own workload all matter. That's why the Rules ask for five names and not one. Five gives the Centre room.
One arbitrator or three: check the clause
Before anything else, read the clause. If it says 'a sole arbitrator', or nothing about numbers, it's the five-name process. If it says three, each side gets a nominee and those two choose the presiding arbitrator. Some clauses say two, or four. That part runs against Section 10, and the Rules will cap the tribunal at three. Get advice before filing so your request doesn't start off with a defect.
One arbitrator is cheaper. Usually faster too. One diary to manage, one fee under the DIAC schedule, one person writing the award. Most mid-sized money claims go this way. Three arbitrators cost a lot more, since each is paid and every hearing depends on three diaries lining up. Even so, parties in high-value or technical disputes often prefer it, because the bench brings mixed experience. A retired judge presiding with a technical member is a common pairing.
The number can change. Even after the dispute starts, if both sides would rather save time and money, a short written agreement for a sole arbitrator, filed with DIAC, settles it. For how institutional and ad hoc tribunals compare on cost and control, see choosing between DIAC and ad hoc arbitration.
Appointing a sole arbitrator at DIAC, step by step
This is the usual route where the clause provides for one arbitrator and no court has named anyone.
Shortlist five names and check them
Before you file, choose five panel members whose experience suits the dispute. Check each for any link with your company, your group, your lawyers or the other side. Don't include anyone you'd be unhappy to see appointed. Any of the five could be chosen.
File the request with your five names
The names go into the request under Rule 4.1(k), together with the clause, the facts, the relief and the other contents the Rule lists. Our guide on filing a DIAC request covers the rest of it.
The respondent sends its five
The respondent has 30 days from receiving the request to file its response, with its own five panel names (Rule 5.1(e)). Miss that, and things move on without its list.
A common name is appointed, or the Chairperson steps in
If a name is on both lists, that person is approached. If there's no common name, or the respondent gave none, the Chairperson of the Arbitration Committee or a Sub-Committee appoints from the panel (Rule 8.4). You can't veto the Chairperson's pick. You can challenge it, on proper grounds.
The arbitrator files a disclosure
Before accepting, the person approached files a Section 12 disclosure in the Sixth Schedule format (Rule 7.1). DIAC sends out the appointment and the disclosure together. Read it the day it comes in. The clock's already running.
First procedural meeting
After fees are deposited as DIAC directs, the arbitrator fixes the first procedural meeting. That's where dates are set for the statement of claim, the statement of defence and any counter claim. From then on the timetable belongs to the tribunal, run with the DIAC Coordinator.
On a simple file, the appointment stage often takes four to ten weeks from filing. A late response, slow fee deposits or trouble finding an available arbitrator can stretch that. The Rules fix the procedure. They don't promise a calendar.
Forming a three-member tribunal
In a three-member case, the claimant names its arbitrator in the request itself (Rule 8.5). It has to approach the person first, get consent, and confirm nothing in the Seventh Schedule rules them out. The respondent names its own in the response. The two party-nominated arbitrators then get 21 days to agree on a presiding arbitrator. If the respondent doesn't nominate, or the two can't agree, the Chairperson or a Sub-Committee appoints within 21 days (Rule 8.6). In an international case, the presiding arbitrator can be of a nationality different from the parties'.
Your nominee isn't your lawyer. Once appointed, he owes the same duty of independence and impartiality as the presiding arbitrator, with the same disclosure obligation. Pick someone too close to you and you invite a challenge. We'd go for someone known for fairness who also gets the commercial side of your dispute.
One practical point. Don't discuss the merits with a possible nominee, however tempting it is on a friendly phone call while you're only meant to be checking whether he's free in March. You can tell them who the parties are, what the dispute is about, roughly how long it'll run and how the hearings are likely to go, so they can check conflicts and availability. Go further than that and you risk an argument later that the nominee was briefed.
The seat, and which courts keep an eye on the case
DIAC administers its cases from the Centre at the Delhi High Court in New Delhi. The seat is whatever the clause says, and in DIAC matters that's usually New Delhi. Hearings can be at the Centre or by video conference; check current practice with the Centre for your case. The seat matters. It decides which courts supervise the arbitration.
Suppose the appointment process collapses completely and you need a court to appoint. The Section 11 application goes to the High Court, which for a Delhi seat means the Delhi High Court. Our guide on how Section 11 cases reach DIAC explains that route. Court applications after appointment, like interim relief under Section 9, more time under Section 29A or a challenge to the award under Section 34, go to the court defined in Section 2(1)(e) of the Act. For a commercial dispute seated in Delhi, that's the Commercial Court of the District Judge up to Rs 2 crore, and the Commercial Division of the Delhi High Court above Rs 2 crore. A proposal to raise the district court limit has been under consideration since late 2025, so check the current limit. Our page on the Commercial Division of the Delhi High Court covers the High Court side.
Companies in Noida, Ghaziabad, Gurugram or Faridabad still come to DIAC in Delhi if their clause names DIAC and a Delhi seat. If the clause names DIAC but puts the seat outside Delhi, the supervising courts follow the seat. Read that combination carefully.
When a court has already named the arbitrator
Courts often skip the lists. Deciding a Section 11 petition, the Delhi High Court will frequently name a sole arbitrator itself and direct the arbitration to run under the rules and aegis of DIAC, and then there's no five-name exercise at all, because the Rules specifically exclude cases where a court has named the arbitrator (Rule 4.1(k)). The order usually tells the arbitrator to give the Section 12 disclosure and enter upon the reference within a few weeks. It also says whether fees follow the DIAC schedule or the Fourth Schedule to the Act.
You still file a request with DIAC under Rule 4.1, with the court's order attached. DIAC registers it, fixes the deposit, and the arbitrator holds the first procedural meeting. And if the disclosure turns up something the court didn't know about, you can still challenge under Sections 12 and 13. A court appointment doesn't protect an arbitrator from a real conflict that surfaces later. Not at all.
Can you pick someone who isn't on the panel?
Usually not. There are two openings. Rule 4.1(k) allows a nominee from outside the panel where the arbitration agreement requires a qualification no panel member has. And the Rule's opening words ('unless otherwise agreed') leave room for both sides to agree on a particular person. In practice, a joint written request naming an agreed non-panel arbitrator is usually accepted. Before committing, ask the Centre how it'll handle fees and administration.
Going it alone won't work. Say your clause reads 'the Managing Director of the buyer shall appoint the arbitrator'. That collides with Section 12(5) and the Seventh Schedule. In TRF Ltd v. Energo Engineering (2017) and Perkins Eastman v. HSCC (2019) the Supreme Court held that someone ineligible to act can't appoint either, and a party with an interest in the result can't pick a sole arbitrator alone. In Central Organisation for Railway Electrification v. ECI-SPIC-SMO-MCML (JV) (2024), a Constitution Bench held that unilateral appointment clauses offend equal treatment of parties. That ruling applies to appointments made after the judgment. Section 12(5) can be waived only by an express written agreement made after the dispute has arisen. If the clause also names DIAC, file a request at the Centre and the Chairperson appoints under the Rules. If it doesn't, the usual answer to a one-sided clause is a Section 11 petition.
Choosing your five names
- Pick for the dispute, not the name. Fit matters most. A delayed-payment claim on admitted invoices needs someone who keeps a tight timetable. A design defect claim might need someone at home with expert evidence. Read the profiles with your own case open beside you.
- Do your own conflict check. Run each name against your company, group companies, directors and the lawyers you usually use. The arbitrator will disclose. Catching it yourself before you list someone saves weeks.
- Keep an eye on cost. DIAC's fee schedule depends on the sum in dispute, and three arbitrators multiply it. Check the current schedule, and our guide on how DIAC fees work.
- Ask whether they'll actually give you dates. A much-in-demand arbitrator may list hearings months apart. In a recovery claim, someone who can hear you regularly is usually worth more than a famous name.
- Leave out anyone you'd object to. If the other side lists the same person, they're appointed. A 'filler' name you're unsure about isn't clever. It's a risk.
- Think about the papers. If half the records are in Hindi, or the evidence turns on site registers and measurement books, pick people comfortable with that.
The appointment stage: time and cost at a glance
| Stage | What happens | Usual time | Cost points |
|---|---|---|---|
| Request for arbitration | You file the request naming your five (or your nominee) and pay what DIAC charges for filing | As long as your preparation takes; the filing is quick | Filing and administrative charges under DIAC's 2018 fee rules; look up the current schedule |
| Response | The other side replies with its own five, or its nominee | 30 days from receipt of the request (Rule 5.1) | Whatever the respondent spends on its lawyers |
| Sole arbitrator chosen | Whoever is on both lists gets approached; failing that, the Chairperson or a Sub-Committee picks | Commonly 2 to 6 weeks after the response, depending on who's free | Nothing new beyond DIAC's charges |
| Three-member tribunal | The two nominees agree on a presiding arbitrator, or the Chairperson does it for them | 21 days for the nominees, then 21 for the Chairperson (Rules 8.5, 8.6) | Three sets of fees on the DIAC schedule |
| Disclosure and objections | Section 12 disclosure comes in; either side may challenge | 14 days to challenge, and a decision within 60 (Rules 10.3, 10.5) | Rs 10,000 processing deposit for a challenge, returned if you win it (confirm against the current Rules) |
| Deposits and the first procedural meeting | DIAC sets the deposits and the tribunal fixes dates for pleadings | Typically 2 to 6 weeks once the tribunal is formed | Arbitrators' fees worked out on claim plus counter claim (Rule 3(ii) of the 2018 fee rules) |
Reading the disclosure, and deciding whether to object
The Section 12 disclosure tells you about past or current relationships with the parties or their lawyers, any financial interest, earlier appointments by the same party, and anything else that could raise justifiable doubts about independence. Put it next to the Fifth and Seventh Schedules and go line by line. The Seventh Schedule covers relationships that disqualify someone outright, such as being an employee, consultant or adviser of a party. The Fifth Schedule covers things that may raise doubts and have to be disclosed, like repeated appointments by one side in recent years.
You don't have long. Two weeks. The DIAC Rules want a challenge within 14 days of receiving the notice of appointment or of learning the facts (Rule 10.3). The Act itself gives 15 days under Section 13. Work to the 14. You can challenge your own nominee only on grounds you learned about after the appointment (Rule 10.2). And if you sit through hearings knowing of a ground and keep quiet, you may be treated as having waived it.
When Advocate B.K. Singh goes through a disclosure, the first thing he looks for is whether the arbitrator has acted for, or been appointed by, the same party or group before. That's where incomplete disclosures most often come to light. Our guide on challenging a DIAC arbitrator sets out the full process.
Several parties, and group companies
Rule 9 changes things. Where there's more than one claimant or respondent and the clause provides for a sole arbitrator, all the parties have to nominate jointly, and if they can't manage that, the Chairperson appoints. For three arbitrators, the claimants together nominate one and the respondents together nominate one, and those two pick the presiding arbitrator. Any fight over nominations goes to the Chairperson (Rule 9.4).
It bites in supply chains. Picture a main contractor suing a subcontractor and the subcontractor's guarantor, or a lender going after a borrower and its promoters. The respondents have to agree among themselves. If they can't, they lose their say and the Chairperson decides. So if you're one of several respondents, pick up the phone to your co-respondents early. Even if you disagree with them on the merits.
Papers to have ready at the appointment stage
The contract and the clause
- The signed contract or purchase order with the DIAC clause, plus any annexures or general conditions it refers to
- Any later agreement about how many arbitrators, or who
- Emails or letters where the parties talked about arbitration
For your list or your nominee
- Printouts of the current DIAC panel entry for each person on your shortlist
- Your conflict check against the company, group companies, directors and lawyers
- For a three-member tribunal, your nominee's written consent and confirmation on Section 12(5)
What comes from the other side and from DIAC
- The request or response, with the other side's list or nominee
- DIAC's notice of appointment and the arbitrator's Section 12 disclosure
- Any Section 11 court order naming the arbitrator
- DIAC's fee assessment and its directions on deposits
Where things usually go wrong
The commonest mistake is treating the five-name list as paperwork. Companies take the first five names on the panel page, or ask their lawyer for 'any five', and later find a listed name got appointed and has a slow diary or an awkward connection. For a sole arbitrator, that list is the only real say you get. Spend an afternoon on it. It's worth it.
Next, the silent respondent. Miss the 30-day reply and you lose the chance to list names, and the Chairperson appoints. That's not unfair. Even if you dispute jurisdiction, file a response with your list and record your objection. Section 16 lets you raise jurisdiction before the tribunal without losing the point by taking part.
Then, the old clause. Older contracts often say a named officer of one party appoints the arbitrator, with arbitration 'under DIAC'. The parties then spend months arguing over whether the officer can still appoint. After TRF, Perkins Eastman and the 2024 Constitution Bench ruling, a one-sided appointment is very hard to defend. In files that come to Advocate B.K. Singh, it's usually quicker to proceed under the DIAC Rules and let the Centre appoint than to litigate the clause.
Last, fees. People forget that appointment and fees go together, and the tribunal may well be appointed while nothing at all happens until the deposits are paid. If the other side won't pay its share, read our guide on when the other party doesn't pay DIAC fees.
An invented example: the five-name list
This example is invented. A packaging supplier in Ghaziabad is owed Rs 1.4 crore by an FMCG company in Delhi. The supply agreement sends disputes to a sole arbitrator under the DIAC Rules, seated in New Delhi. The supplier's team picks five panel members. Two are retired district judges who list commercial recovery work. One is an advocate who's done sale of goods disputes, one a chartered accountant used to accounts reconciliation cases, and the last a retired High Court judge.
The buyer's response lists five different names. No overlap. The Chairperson appoints a retired district judge from the panel who wasn't on either list. Her disclosure says that some years earlier she'd been appointed arbitrator in a case where the buyer's sister company was a party. The supplier looks at this within the 14 days. Its lawyers advise that one earlier appointment in an unrelated matter is a disclosed fact, not a ground of ineligibility. It doesn't challenge. Five weeks after the response, the first procedural meeting fixes the pleadings timetable.
Who got appointed isn't the point. The supplier read the disclosure in time and made a reasoned call. The alternative was stumbling on the issue a year later, when any objection would have been waived.
Suppliers, MSMEs, startups, lenders and big companies
Invoice-chasers want speed. Suppliers and service firms chasing payment mostly want a sole arbitrator who keeps things moving, and if you're a registered micro or small enterprise, don't forget that a delayed-payment claim can also go to the MSME Facilitation Council under Section 18 of the MSMED Act, 2006. In Gujarat State Civil Supplies v. Mahakali Foods (2022), the Supreme Court held that route overrides a private arbitration clause. Compare the two first. Our guide on DIAC versus the MSME Council lays out the trade-off.
Startups and smaller firms often have founder-drafted contracts with half-finished clauses. Lenders and NBFCs commonly have standard clauses that once let their own officers appoint, and those need a fresh look after 2024. Large companies and public sector bodies tend to have three-member clauses and long internal approval chains for choosing a nominee. That can eat up the 30-day response window. Start the internal approval the day the request lands. Not the week after.
For businesses in Uttar Pradesh and Haryana, the DIAC process is the same if their clause names DIAC with a Delhi seat. The difference shows up later, at enforcement. An award against a company in Noida or Gurugram is executed where its assets are, which our guide on enforcing a DIAC award covers.
What to do this week
If you're about to file, read the clause for the number of arbitrators and any appointment method, shortlist five panel names and run a conflict check on each. If you're the respondent, mark the 30-day response date from the day you got the request, and start your own list that same week. If an appointment's already been made, read the disclosure today. You've got 14 days to decide whether anything in it is worth objecting to.
Our page on DIAC arbitration gives an overview of running or defending a whole case at the Centre. If you'd like your clause, your shortlist or an arbitrator's disclosure checked before the deadline runs out, send the papers to Advocate B.K. Singh's team through the contact page.
Frequently asked questions
How does DIAC appoint an arbitrator?
Under the DIAC (Arbitration Proceedings) Rules, 2023, each side lists five DIAC panel names for a sole arbitrator, and a name on both lists gets appointed. If there's no match, the Chairperson of the Arbitration Committee appoints. With three arbitrators, each side nominates one and those two choose the presiding arbitrator.
What is the DIAC panel?
A list of arbitrators kept by DIAC's Arbitration Committee. It includes retired judges, senior advocates, advocates and technical and financial professionals. The current list is on the DIAC website and changes from time to time. Arbitrators in DIAC cases normally come from it.
How many arbitrators will my DIAC case have?
Whatever the parties agreed, provided it's one or three. If the clause says nothing, it's a sole arbitrator under Rule 8.2. The Rules don't allow more than three.
How long does appointment take at DIAC?
The respondent gets 30 days to reply with its list, and three-member tribunals have two 21-day windows. On an ordinary file, the tribunal is often in place within one to three months of the request. Slow deposits or availability problems can push that out.
Can I pick an arbitrator who isn't on the DIAC panel?
Only if both sides agree, or the arbitration agreement needs a qualification no panel member has. One party can't bring in an outsider alone. Ask the Centre how fees and administration will work before you agree.
What if the other side gives no names?
Nothing stops. If the respondent doesn't send a list or nominee in time, the Chairperson or a Sub-Committee appoints from the panel. The respondent just loses its say in the choice.
Is a clause letting one party appoint the arbitrator still valid?
For appointments made today, mostly not. TRF (2017) and Perkins Eastman (2019) stopped an interested party from appointing a sole arbitrator alone, and a 2024 Constitution Bench held unilateral appointment clauses offend equal treatment. The usual answer is to proceed under the DIAC Rules or apply under Section 11.
How do I object to a DIAC arbitrator?
Read the Section 12 disclosure, then send DIAC a written challenge within 14 days of the appointment notice or of learning the facts. The Chairperson or a Sub-Committee decides it, normally within 60 days. You pay a processing deposit, which is refunded if the challenge succeeds.
Advocate B.K. Singh
Founder of B.K. Singh & Associates. MCA, LL.B., LL.M. More than twenty years in practice before the Supreme Court, the Delhi High Court, district and commercial courts in Delhi NCR, and tribunals.
This guide explains the law in general terms and is not legal advice. For advice on your own papers, contact the team.