Fifth Schedule explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Fifth Schedule opens with one sentence: "The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators." It then lists 34 grounds under seven headings and adds three Explanations. Explanation 1 to section 12(1) says these grounds "shall guide" in deciding whether circumstances give rise to such doubts. This follows the India Code consolidated text consulted.
The Schedule has 34 numbered entries under seven headings: relationship with the parties or counsel (1 to 14), relationship to the dispute (15 and 16), direct or indirect interest in the dispute (17 to 19), previous services or involvement (20 to 24), relationship with another arbitrator or counsel (25 to 29), relationship with a party and others (30 and 31), and other circumstances (32 to 34). Explanation 1 defines "close family member", Explanation 2 defines "affiliate", and Explanation 3 deals with specialised pools of arbitrators. Under section 12(1) Explanation 1, the grounds "shall guide". The heading is printed "".
How the Fifth Schedule fits into section 12
Section 12(1) requires a person approached in connection with a possible appointment as arbitrator to disclose in writing circumstances: (a) such as any past or present relationship with or interest in the parties or the subject-matter, whether financial, business, professional or other, which is likely to give rise to justifiable doubts as to independence or impartiality; and (b) likely to affect his ability to devote sufficient time, in particular to complete the entire arbitration within a period of twelve months. Explanation 1 to section 12(1) says the grounds stated in the Fifth Schedule shall guide in determining whether circumstances exist which give rise to justifiable doubts. Explanation 2 says the disclosure shall be in the form specified in the Sixth Schedule. Section 12(3)(a) allows a challenge where circumstances exist that give rise to such doubts. See our article on section 12.
Printing note: the Fifth Schedule heading reads "", although the Schedule is named in Explanation 1 to section 12(1) and the independence limb is clause (a). We quote the heading as printed. The footnote to the Fourth to Seventh Schedules shows them as inserted by Act 3 of 2016, s. 25 (w.e.f. 23-10-2015).
If you are choosing an arbitrator or reviewing a disclosure, our arbitration support team can check the facts against this list.
The entries, heading by heading
1. Arbitrator's relationship with the parties or counsel (entries 1 to 14)
| No. | Ground, in brief |
|---|---|
| 1 | Employee, consultant, advisor or any other past or present business relationship with a party |
| 2 | Currently represents or advises one of the parties or an affiliate |
| 3 | Currently represents the lawyer or law firm acting as counsel for a party |
| 4 | A lawyer in the same law firm representing a party |
| 5 | Manager, director or part of management, or similar controlling influence, in an affiliate if the affiliate is directly involved in the matters in dispute |
| 6 | Arbitrator's law firm had a previous but terminated involvement in the case, without the arbitrator being involved |
| 7 | Law firm currently has a significant commercial relationship with a party or an affiliate |
| 8 | Regularly advises the appointing party or an affiliate even though neither the arbitrator nor the firm derives a significant financial income |
| 9 | Close family relationship with a party, and for companies with the persons in the management and controlling the company |
| 10 | A close family member has a significant financial interest in a party or an affiliate |
| 11 | A legal representative of an entity that is a party |
| 12 | Manager, director or part of management, or similar controlling influence, in one of the parties |
| 13 | Significant financial interest in one of the parties or the outcome of the case |
| 14 | Regularly advises the appointing party or an affiliate, and the arbitrator or firm derives a significant financial income therefrom |
Entries 8 and 14 differ only on whether significant financial income is derived. Entry 5 and entry 34 differ on whether the affiliate is directly involved in the matters in dispute.
2. Relationship of the arbitrator to the dispute (entries 15 and 16)
| No. | Ground, in brief |
|---|---|
| 15 | Has given legal advice or provided an expert opinion on the dispute to a party or an affiliate |
| 16 | Has previous involvement in the case |
3. Arbitrator's direct or indirect interest in the dispute (entries 17 to 19)
| No. | Ground, in brief |
|---|---|
| 17 | Holds shares, directly or indirectly, in a party or an affiliate that is privately held |
| 18 | A close family member has a significant financial interest in the outcome of the dispute |
| 19 | The arbitrator or a close family member has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party |
4. Previous services for one of the parties or other involvement in the case (entries 20 to 24)
| No. | Ground, in brief |
|---|---|
| 20 | Within the past three years served as counsel for a party or an affiliate, or previously advised or been consulted by the appointing party or its affiliate in an unrelated matter, but with no ongoing relationship |
| 21 | Within the past three years served as counsel against a party or an affiliate in an unrelated matter |
| 22 | Within the past three years appointed as arbitrator on two or more occasions by a party or an affiliate |
| 23 | Law firm has within the past three years acted for a party or an affiliate in an unrelated matter without the arbitrator's involvement |
| 24 | Currently serves, or has within the past three years served, as arbitrator in another arbitration on a related issue involving a party or an affiliate |
5. Relationship between an arbitrator and another arbitrator or counsel (entries 25 to 29)
| No. | Ground, in brief |
|---|---|
| 25 | The arbitrator and another arbitrator are lawyers in the same law firm |
| 26 | Within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration |
| 27 | A lawyer in the arbitrator's firm is an arbitrator in another dispute involving the same party or parties or an affiliate |
| 28 | A close family member is a partner or employee of the law firm representing a party but is not assisting with the dispute |
| 29 | Within the past three years received more than three appointments by the same counsel or the same law firm |
6. Relationship between arbitrator and party and others involved in the arbitration (entries 30 and 31)
| No. | Ground, in brief |
|---|---|
| 30 | The arbitrator's law firm is currently acting adverse to a party or an affiliate |
| 31 | Associated within the past three years with a party or an affiliate in a professional capacity, such as a former employee or partner |
7. Other circumstances (entries 32 to 34)
| No. | Ground, in brief |
|---|---|
| 32 | Holds shares which by reason of number or denomination constitute a material holding in a party or an affiliate that is publicly listed |
| 33 | Holds a position in an arbitration institution with appointing authority over the dispute |
| 34 | Manager, director or part of management, or similar controlling influence, in an affiliate where the affiliate is not directly involved in the matters in dispute |
Printing note: entry 11 is printed "11.The arbitrator", without a space after the number. Entries 17 and 32 pair privately held with publicly listed holdings.
The three Explanations
- Explanation 1: the term "close family member" refers to a spouse, sibling, child, parent or life partner.
- Explanation 2: the term "affiliate" encompasses all companies in one group of companies including the parent company.
- Explanation 3: for the removal of doubts, it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.
Points to notice
- The Schedule speaks of "justifiable doubts", not proof of bias. The opening sentence says the grounds "give rise to justifiable doubts".
- The grounds guide. Explanation 1 to section 12(1) says "shall guide". The text consulted does not say more about their effect.
- Entries 1 to 19 recur in the Seventh Schedule, which uses them for a different purpose: ineligibility under section 12(5). See our article on the Seventh Schedule.
- Time periods are printed as three years in entries 20 to 24, 26, 29 and 31, as shown above.
- The text consulted does not say how any entry is to be proved, or what a tribunal or court does on a challenge beyond section 12 and section 13.
Need help checking an arbitrator's disclosure?
A disclosure is only useful if it is read against the grounds. Our arbitration support team can compare an arbitrator's written disclosure with the entries above and with the Sixth Schedule form, and help you decide what to ask next. For the appointment stage, see our post on appointment of arbitrator under section 11.
Key takeaways
- The Fifth Schedule lists 34 grounds under seven headings that give rise to justifiable doubts about independence or impartiality.
- Section 12(1), Explanation 1 says the grounds shall guide in determining whether such circumstances exist.
- "Close family member" and "affiliate" are defined in Explanations 1 and 2; Explanation 3 deals with specialised pools.
- The heading reads "" as printed.
- Entries 1 to 19 recur in the Seventh Schedule.
Read next
- Section 12: grounds for challenge and disclosure by arbitrator
- Sixth Schedule: form of disclosure by arbitrator
- Seventh Schedule: relationships that make a person ineligible as arbitrator
- Appointment of arbitrator under section 11
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.