Who is arbitrator?

An arbitrator is an independent and impartial third party chosen by the disputing parties to resolve their commercial or legal disputes outside the court system through arbitration. Arbitration is a form of alternative dispute resolution (ADR) where the arbitrator hears both sides, examines evidence, and delivers a binding or non-binding decision (award) based on the law, contract terms, or equity.

Key characteristics of an arbitrator:

• Neutrality: Must be unbiased and fair.
• Expertise: Often selected for specialized knowledge in the dispute’s field (e.g., business, construction).
• Appointment: Parties may agree in advance (via arbitration clause) or appoint one after a dispute arises.
• Authority: Powers include summoning witnesses, inspecting documents, and issuing enforceable awards (under the Arbitration Act, 2063 in Nepal).

Arbitration is faster, confidential, and avoids lengthy court procedures, making it popular in international and commercial disputes.