38.

Deposits

(1)

The arbitral tribunal may fix the amount of the deposit or supplementary deposit as the case may be as an advance for the costs referred to in sub-section (8) of section 31 which it expects will be incurred in respect of the claim submitted to it :

Provided that where apart from the claim a counter-claim has been submitted to arbitral tribunal it may fix separate amount of deposit for the claim and counter-claim.

(2)

The deposit referred to in sub-section (1) shall be payable in equal shares by the parties :

Provided that where one party fails to pay his share of the deposit the other party may pay that share :

Provided Further that where the other party also does not pay the aforesaid share in respect of the claim or the counter-claim the arbitral tribunal may suspend or terminate the arbitral proceedings in respect of such claim or counter-claim as the case may be.

(3)

Upon termination of the arbitral proceedings the arbitral tribunal shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the party or parties as the case may be.

39.

Lien on arbitral award and deposits as to costs

(1)

Subject to the provisions of sub-section (2) and to any provision to the contrary in the arbitration agreement the arbitral tribunal shall have a lien on the arbitral award for any unpaid costs of the arbitration.

(2)

If in any case an arbitral tribunal refuses to deliver its award except on payment of the costs demanded by it the court may on an application in this behalf order that the arbitral tribunal shall deliver the arbitral award to the applicant on payment into court by the applicant of the costs demanded and shall after such inquiry if any as it thinks fit further order that out of the money so paid into court there shall be paid to the arbitral tribunal by way of the costs such sum as the court may consider reasonable and that the balance of the money if any shall be refunded to the applicant.

(3)

An application under sub-section (2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal and the arbitral tribunal shall be entitled to appear and be heard on any such application.

(4)

The court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them.

40.

Arbitration agreement not to be discharged by death of party thereto

(1)

An arbitration agreement shall not be discharged by the death of any party thereto either as respects the deceased or as respects any other party but shall in such event be enforceable by or against the legal representative of the deceased.

(2) The mandate of an arbitrator shall not be terminated by the death of any party by whom he was appointed.

(3)

Nothing in this section shall affect the operation of any law by virtue of which any right of action is extinguished by the death of a person.

41.

Provisions in case of insolvency

(1)

Where it is provided by a term in a contract to which an insolvent is a party that any dispute arising thereout or in connection therewith shall be submitted to arbitration the said term shall if the receiver adopts the contract be enforceable by or against him so far as it relates to any such dispute.

(2)

Where a person who has been adjudged an insolvent had before the commencement of the insolvency proceedings become a party to an arbitration agreement and any matter to which the agreement applies is required to be determined in connection with or for the purposes of the insolvency proceedings then if the case is one to which sub-section (1) does not apply any other party or the receiver may apply to the judicial authority having jurisdiction in the insolvency proceedings for an order directing that the matter in question shall be submitted to arbitration in accordance with the arbitration agreement and the judicial authority may if it is of opinion that having regard to all the circumstances of the case the matter ought to be determined by arbitration make an order accordingly.

(3)

In this section the expression "receiver" includes an Official Assignee.

42.

Jurisdiction

Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force where with respect to an arbitration agreement any application under this Part has been made in a court that court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of the agreement and the arbitral proceedings shall be made in that Court and in no other court.

43.

Limitation

(1)

The Limitation Act 1963 shall apply to arbitrations as it applies to proceedings in court.

(2)

For the purposes of this section and Limitation Act 1963 an arbitration shall be deemed to have commenced on the date referred in section 21.

(3)

Where an arbitration agreement to submit future disputes to arbitration provides that any claim to which the agreement applies shall be barred some step to commence arbitral proceedings is taken within a time fixed by the agreement and a dispute arises to which the agreement applies the court if it is of opinion that in the circumstances of the case undue hardship would otherwise be caused and notwithstanding that the time so fixed has expired may on such terms if any as the justice of the case may require extend the time for such period as it thinks proper.

(4)

Where the court orders that an arbitral award be set aside the period between the commencement of the arbitration and the date of the order of the court shall be excluded in computing the time prescribed by the Limitation Act 1963 for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted.