FAQs ON ARBITRATION

COMPOSITION OF ARBITRAL TRIBUNAL

Is there any other alternative to uphold the award, after the making of the application for setting aside the same and before decision thereon by the Court ?

Yes, on receipt on an application for setting aside the award the Court may where it is appropriate and it is so requested by a party, adjourned the proceeding for a period of time determine by it, in order to give the Arbitrator an opportunity to resume the proceedings or to take such other action as in the opinion of the Arbitrator will eliminate the grounds for setting aside the award. [Section 34(4)].

This is a new concept in the Law of Arbitration. Incases where it is appropriate and it is so requested by a party the Court may give an opportunity to the Arbitrator to resume the proceedings and to take such other action as in the opinion of the Arbitrator will illuminate the grounds for setting aside the Arbitral award. This could not be done under the old Law.

An appeal shall lie from the following orders (and from no others) to the Court authorized by Law to hear appeals from original decrease of the Court passing the order namely:-

An appeal shall also lie from an order granting or refusing to grant an interim measure under Section 17 to a Court. (It is to be remembered that Section 17 relates to interim measures to be granted by an Arbitrator).

No second appeal shall lie from an order passed in appeal under this section that is Section 37, but nothing in this section shall effect or take away any right to appeal to the Supreme Court. (Section 37).

Yes, it can do so and fix the amount of the deposit or supplementary deposit as the case may be, as an advanced for the cost and in a case where there is a counter claim it may fix separate amount of deposit for the counter claim.

The deposit shall be payable in equal share by the parties. Provided 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 Arbitrator may suspend or terminate the proceedings in respect of such claim or counter claim, as the case may be.

Upon termination of the proceedings, the Arbitrator share 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. (section 38)
 

If in any case the Arbitrator refuses to deliver its award except on payment of the costs, demand by it, the Court may, on an application in this behalf, order that the Arbitrator shall deliver the 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 Arbitrator by way of costs such some as the court may consider reasonable and that the balance of the money if any, shall be refunded to the applicant. (Section 39)

No, and in case of death of the party the same is enforceable by or against the legal representative of the deceased. Similarly the mandate of an Arbitrator shall not be terminated by the death of any party by whom he was appointed.

Nothing is this Section shall affect the operation of any Law by Virtue of which any right of action is extinguished by death of a person. (Section 40).

Where the contract so provides and where the receiver in insolvency adopts the contract, the Arbitration agreement shall be enforceable by or against him so far as it relates to any such disputes.

Where a person who has been adjudged an insolvent had, before the commencement of the insolvency proceedings, became 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, than, any other party or the receiver may apply to the judicial authority having Jurisdiction in the insolvency proceedings, for an order directing that the mattering question shall be submitted to Arbitration and the judicial authority may make an order accordingly. (Section 41) .

Which Court will have Jurisdiction in a case where an application has already been made with respect to an Arbitration agreement?

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 the court, that court alone shall have jurisdiction over the arbitral proceedings and all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that court and in no other court. (Section 42)

Yes, the limitation Act 1963 applies to Arbitration as it applies to proceedings to court. For the purposes of limitation Act 1963 the Arbitration shall be dimmed to have commenced on the date on which a request for that dispute to be referred to Arbitration is made and received by the respondent.

Where an Arbitration agreement to submit future dispute to Arbitration provides that any claim to which agreement applies shall be bar unless some step to commence Arbitration 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 not withstanding that the times of 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.

Where the court orders that the 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, for the commencement of the proceedings (including Arbitration) with respect to the dispute so submitted.

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