Embracing confidence for commercial arbitration

(1)
Supreme Court judgement gets handed down within 2020 November agreed with Appeal Court and also confirmed that all arbitrators have legal duty for disclosing all matters that can or will lead to a conclusion that there prevails actual possibility for which they have been biased, according to a case of Halliburton Company v Chubb Bermuda Insurance Ltd [2020] UKSC 48.

(2)
Commercial arbitration has been one of the most favoured ADR mechanisms within the corporate world that manifests flexibility, confidence and private justice throughout the process during preserving autonomy for a party. Leal framework upon arbitration requirements concerns well-crafted reformations on independence as well as the impartiality of arbitrators that need to be served with good legal interpretations. Moreover, both independence along with impartiality of all arbitrators are globally accepted norms in arbitral proceedings. Within the arbitration process, the justice gets perceived as well as visible by the behaviour of 3rd party, who has been known as the arbitrator gets appointed for resolving matters between parties.

It also seeks for approaching the problem from a legal perspective comparatively having some special reference towards the laws of the UK, while considering global benchmarks of the UN Convention on Model Law of UNCITRAL upon Global Commercial Arbitration 1985 and Enforcement as well as Recognition of Abroad Arbitral Awards, 1958 with amendments, adopted in the year 2006. It also follows the approach of a black letter within the law and global and legal research comparatively as methodology predominantly. Additionally, it suggests legal reformation towards prevailing law upon arbitration with promoting the objective of ADRs in the commercial sphere of dispute resolution by embracing confidence for commercial arbitration, while pursuing private justice.
(3)
As a starting point, in which arbitration agreement gets governed through UK law, the non-party towards such agreement fails to be made a party to arbitration with no consent. However, the application of some principles of UK law does have an effect that a party, who has not a signatory to the arbitration agreement still can be treated as a party towards it. Such principles involve agency, like apparent authority and undisclosed principal and piercing the corporate veil, in the case of Ashot Egiazaryan and Vitaly Gogokhiya v OJSC OEK Finance and The City of Moscow [2015] EWHC 3532 (Comm). Furthermore, situations where actual agreement gets novated and assigned to 3rd parties. Where the assignee for party acquires rights within a contract that comprises an arbitration agreement, where the assignee only can bring claims within arbitration, highlighting the principle of conditional benefit in UK law.

In London Steam-Ship Owners’ Mutual Insurance Association Ltd v Kingdom of Spain (the Prestige) [2020] EWHC 1582 (Comm), the court developed that where it benefits principle conditionally implements, the jurisdiction of the arbitrator incorporates only the determination of the substantive claim. Moreover, if the assignee also failed towards pursuing their claim within arbitration, then the determination regarding what relief for the other party gets entitled towards following the failure of the assignee for complying with an arbitration agreement.
A party seeking for enforcing rights within Contracts Act 1999 need to if the contract within question comprises an arbitration agreement and enforce the right by arbitration served that it not has been excluded, according to Contracts Act 1999, Section 8(1).

Within some transactions, the non-party does have the right for stepping into the shoes of the party, generally where there prevails a contract breach. For instance, a funder can have suitable for stepping in the shoes of an insolvent developer upon a construction project. This also is possible regarding parties getting agreed that the arbitral proceedings set can get consolidated with other arbitral proceedings’ set, as per Arbitration Act 1996, Section 35. Rules of amount if all arbitral institutions serve expressly framework for consolidation of 3rd party joining as well as proceedings. For instance, Arbitration Rules of Global Commerce Chamber 2021, Articles 7 – 10 and LCIA Rules 2020, Articles 22, 22A.