QUESTIONS WITH ANSWERS, [ Ans. : (d)] wers of the court ve [ Ans. : (@)] arbitration agreement... al [ Ams. : (@)] rbitration and Conciliation n Act of 1940. isputes which have arisen fined legal relationship, 3s of civil nature. of criminal nature. [ Ans. : (b)] and Conciliation Act, 1996 trator only gofficer. [ Ans.: (a)] o the substantive provisions bunal has not followed the ndamental policy of Indian [ Ans. : (d) ] Bee {HEARBITRATION AND CONCILIATION ACT, 1998 Py —_—_————— Descriptive Questions with Answers 4, What are the Advantages of Alternative Dispute Resolution (ADR)? ‘Ans. : The advantages of Alternative Dispute Resolution (ADR) are : 1. ADR is comparatively less time consuming. Parties can resolve their dispute in short period as compared to litigation time taken in courts. 2. Itisa cost effective method as compared to long litigation process. 3. There ate alway’ possibilities of restoring relationship back as parties discuss their issues together on the same platform. Itprevents further conflict and maintains cordial relationship between the parties. It preserves the best interest of the parties. 6. Parties are free to express themselves thereby the chances of amicable settlement are high. .. Discuss how the Arbitration system is better as compared to litigation? 1. Arbitration is often less time consuming than litigation proceedings which are held in court 2. Arbitration is less expensive as compared to litigation costs. ‘As opposed to litigation, arbitration allows the parties to choose their own arbitrator/ tribunal, This is very useful when the subject matter of the dispute is technical in nature. Accordingly, the arbitrators with an appropriate degree of expertise in a particular subject may be appointed. 4. Many disputes can be resolved on the basis of documents themselves even without a prolonged hearing, 5. Arbitral proceedings are usually confidential. In arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the state of the competent court will be automatically applied. 71. The venue of the proceedings can be decided by the parties irrespective to the place of cause of action, which is not the same as litigation for which the proceedings are strictly carried out according to jurisdiction.aso MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, 5. Explain the different forms of ADR. 6. Answer in one/two sentences : What is mediation. 3. What are the drawbacks or disadvantages of the Arbitration system? Ans. : The drawbacks or disadvantages of the Arbitration system are : 1, If the arbitration is mandatory and binding, the parties waive their rights to access the courts to decide the case. 2. There are very limited avenues for appeal, which means that an erroneous decision cannot be easily overtumed. 3. Although usually thought to be speedier, when there are multiple arbitrators on the panel, juggling between their schedules for hearing dates in long cases can lead to delays. However, with the Amendment Act of 2015, this issue has been curtailed to great extent as time frame for resolving issues have been provided 4. Name the different means of dispute resolution. ‘Ans. : The different means of dispute resolution are : 1. Arbitration 2. Negotiation. 3. Lok Adalat 4, Mediation 5. Conciliation Ans. : ADR can be categorized in two forms namely., adjudicatory and non- adjudicatory, Adjudicatory includes Arbitration wherein the decision of an arbitrator or an expert is binding on the parties, whereas in case of non-adjudicatory procedures like negotiation and mediation, the decision is non binding. In fact, the parties have freedom to decide the outcome of the dispute in such non-adjudicatory procedures. However, non-adjudicatory procedures, the third party, ie, the conciliator or the mediator does not himself decides, but only facilitates the resolution of disputes by guiding the parties to reach at an amicable settlement. Usually, parties adopt the methods of non adjudicatory ADR, when the parties are still at cordial and speaking terms because that is the time when resolution of disputes is most likely. Even if an ADR proceeding fails, itis never a waste since it helps the parties to see each other’s view point and understand their concems/ issues regarding the matter. ‘Ans, : Mediation in India is a voluntary process where the disputing people decide to mutually find a solution to their legal problem by entering into a written contract and appointing a mediator. The decision-making powers remain with the disputingVE QUESTIONS WITH ANSW bitration system? n system are : waive their rights means that an errone are multiple arbitrators ing dates in long cases £2015, this issue has ssues have been provi alat +, adjudicatory and non 1e decision of an arbitrator n-adjudicatory procedures g. In fact, the parties have -adjudicatory procedures, .e., the conciliator or the resolution of disputes by Jsually, parties adopt the il at cordial and speaking ‘is most likely. Even if an parties to see each other's g the matter. > disputing people decide ng into a written contract emain with the disputing {THON AND CONCILIATION ACT, 1986 nat ies, with the mediator, who is a neutral; third party, acts as a medium to bring them to an understanding. It is a low cost method, Also, the solution is not imposed onany party, itis a solution that both the parties agreed to. It, thus gives an effective solution in a peaceful manner. Who is a Mediator? ‘Ans. : A ‘mediator’ is one requested to mediate or intervene between the parties, as ‘friend, to bring about a settlement, The settlement brought about by him is not an award within the meaning of the Act. Explain the term ‘Conciliation’. ‘Ans. : Concillation is a process of persuading parties to reach to a settlement. It is a method adopted by the parties to a dispute to reach an amicable settlement thereof by mutual compromise with assistance of an independent third person or institution, ‘The Act provides for Conciliation of disputes under Sections 61 to 81. Conciliation can be adopted at any stage of the dispute. Parties are also permitted to engage in conciliation process even while the arbitral proceedings are on. ). Enumerate the differences between Mediation and Conciliation. ‘Ans. : Differences between Mediation and Conciliation are — (a). The process of dispute resolution in which a third party intervenes in an attempt toresolve it, by enabling communication between parties by promoting voluntary agreement is called mediation. Whereas, conciliation implies a process of settling the dispute between the parties, in which a neutral third party provides possible solutions to the patties so as to resolve the issue. (b)_ Inmediation, the role of the third party is a facilitator, who facilitates interaction between the parties for resolution of dispute . As against, in conciliation, the role played by the third party is beyond facilitator, who not only facilitate communication but also provide solutions to their problem as an skilled professional (©) Mediation process is completed with an voluntary agreement between the parties concerned, whereas conciliation ends with a settlement agreement between the parties. (@) The contract of agreement between the parties under mediation is enforceable by law, On the contrary, the settlement agreement between the parties is binding upon parties like an arbitral award.Aaz 10. What is UNCITRAL? 1. 4. Con: MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, Ans. : The Indian Arbitration Act is based on the UNCITRAL Model Law on International Commercial Arbitration 1985 and the UNCITRAL Arbitration Rules 1976. The acronym ‘UNCITRAL! stands for United Nation Commission on International Trade Law. UNCITRAL is a specialized commission of United Nations created by general Assembly with the aim of promoting the harmonization and unification of Intemational trade law. The UNCITRAL Model Law and Conciliation Rules have been adopted by India by promulgation of Arbitration and Conciliation Ordinance 1996, which became operative from 25" January 1996 and which has since been enacted in Arbitration and Conciliation Act 1996, with the objective to reform and modernize laws on arbitral procedure so as to take into account the particular features and needs of international commercial arbitration. Discuss the features of Arbitration and Conciliation Act 1996, ‘Ans. : The Arbitration and Conciliation Act, 1996 aims in facilitating quick resolution of commercial disputes. Some of the salient features of the Act are as follows: 1, Procedural Advantages : Certain procedural advantages are in built in the 1996 Act, under the earlier law, the arbitration could become enforceable only afier the courts made it “rule of court”. However, under the 1996 Act, the award of the arbitrator itselfiis enforceable as a decree of the court and not required to bemadeca ‘rule of court’ thereby saving a lotof time and curtailing the indulgence of court. 2, Reasoned Award : During the earlier law, unless specifically agreed by the parties, it was not mandatory for the arbitrator to provide reasons for the award and thereby the arbitrator had complete control and unfettered power to pass an award, Under the 1996 Act, itis mandatory for an arbitrator to provide a reasoned award, 3. It replaces three old statutes : The 1996 Act consolidates and amends the Provisions of (i) The Arbitration (Protocol and Convention) Act, 1937, (ii) The Arbitration Act, 1940 and (iii) Foreign Awards (Recognition and Enforcement) Act, 1961 thereby simplifying the law relating to Arbitration and ensuring that the same is referred to by only one single enactment, i-e., the 1996 Act. Ttenacts the law of Conciliation for the frst time in India thereby making it as a recognized means of resolving disputes in commercial as well as international matters. A settlement agreement reached in conciliationE QUESTIONS WITH ANSWER) 74 ARBITRATION AND CONCILIATION ACT, 1996 aaa proceedings, once signed and authenticated by the conciliator has the same status CITRAL Model Law and effect as an arbitration award on agreed terms, No review of such award is ITRAL Arbitration Rul permitted nor is there any provision in the Act for permitting the parties to Nation Commission backtrack upon and wriggle out of their written commitments. Parties are mission of United Nati debarred from initiating arbitral or judicial proceedings during the conciliation g the harmonization ang proceedings. Irrespective of the ultimate result of the conciliating proceedings ydel Law and Conciliatioy and settlement agreement reached if any, are strictly confidential and are not pitration and Conciliati admissible as evidence in any other proceedings. Neither the parties nor the lary 1996 and which conciliator can make the matters public before any court or arbitral tribunal 996, with the objective ty whatsoever. Contents of the settlement agreement can be disclosed only for the to take into account limited purpose of implementation or enforcement thereof. The conciliator cannot arbitration. act as an arbitrator (unless otherwise agreed by the parties) or as a witness in we any proceedings. t : ciltsting quid ota Domestic and International Arbitration : The Act provides not only for domestic arbitration but also for international commercial | arbitration, The law © Act are as follows: relating to enforcement of foreign arbitration awards limits judicial intervention ntages are in built in to a narrower circumference then under the previous law. In other words, it become enforceable onl limits the intervention of the courts in arbitral process. In Tarapore & Co. v/s r the 1996 Act, the award] Cochin Shipyard Ltd. [AIR 1984 SC 1072] that Supreme Court has observed. court and not required ta ‘ that with the ever widening expansion of intemational trade and commerce, | curtailing the indulgence complex questions on private international law, effect of local laws on contract between parties belonging to different nations are certain to crop up. It further vecifically agreed by the observed that arbitration has been considered to be civilized way of resolving ide reasons for the award such disputes avoiding court proceedings. This approach manifests faith of parties fettered power to pass an in the capacity of the tribunal of their choice to decide even a pure question of ator to provide a reasoned law. The Act is in line with international practice : The act has been enacted olidates and amends the taking into account the UNCITRAL Model Law and UNCITRAL Conciliation ‘onvention) Act, 1937, Rules which aim at promoting the unification and harmonization of intemational vards (Recognition and trade law by harmonizing concepts on Arbitration and Conciliation of legal lating to Arbitration and systems of the world. enactment, i.e, the 1996 " 12. Which of the Acts were repealed by the Arbitration and Conciliation Act, 19967 irs time in India thereby ‘Ans, : Prior to passing of 1996 Act the law of Arbitration in India was substantially in commercial is well of contained in three enactment namely, the Arbitration Act 1940, the Arbitration sached in conciliatiow (Protocol and Convention ) Act, 1937 and Foreign Awards (Recognition andAaa 13, 14, MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS | THE ARBITRAT Enforcement) Act, 1961. These three Acts now stand repealed by Section 85 of the Arbitration and Conciliation Act, 1996. What should be the Qualification and Experience of an Arbitrator? Ans, : A person will not be qualified to be an arbitrator unless he is/ has been: (@ an advocate within the meaning of the Advocates Act, 1961 having ten years of Practice experience as an advocate; (ii) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 having ten years of experience; (iii) a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 having ten years of experience; (iv) a company secretary within the meaning of the Company Secretaries Act, 1980 having ten years of experience; (v) an officer of the Indian Legal Service; (vi) an officer with law degree having ten years of experience in the sectior legal matters in the Government, autonomous body, public sector undertaking or at Act. A 4 senior level managerial position in private sector; (vii) an officer with engineering Patt degree having ten years of experience as an engineer in the Government, autonomous of Sec body, public sector undertaking or ata senior level managerial position in the private Award sector or self-employed; (viii) an officer having senior level experience of igen administration in the Central Government or State Government or having experience ofsenior level management ofa public sector undertaking or a Government company Ans. or a private company of repute; ot (ix) person having educational qualification at arbitr degree level with ten years of experience in a scientific or technical stream in the . What fields of telecom, information technology, intellectual property rights or other specialized areas in the Government, autonomous body, public sector undertaking or a senior level managerial position in a private sector, as the case may be. Ans. oraH ‘Arbit What principles/norms/attributes should be there in an Arbitrator? High ( Ans, : . What » The arbitrator must be impartial and neutral and avoid entering into any financial ‘Ans. business or other relationship that is likely to affect impartiality or might reasonably create an appearance of partiality ot bias amongst the parties; Hit > The arbitrator must be conversant with the Constitution of India, principles of ane. natural justice, equity, common and customary laws, commercial laws, labour laws, law of torts, making and enforcing the arbitral awards, domestic and international legal system on arbitration and international best practices; andUESTIONS WITH ANSWER | ye ARBITRATION AND CONCILIATION ACT, 1996 Aas ed by Section 85 of the The arbitrator should be capable of suggesting, recommending or writing a reasoned and enforceable arbitral award in any dispute which comes before Attiirebo? him for adjudication, inless he is/ has been: 161 having ten years of. t within the meaning of experience; (iii) a cost tants Act, 1959 having eaning of the Company n officer of the Indian 1s of experience in the ector undertaking or at fficer with engineering vernment, autonomous, | position in the private “level experience of at or having experience Government company ational qualification at echnical stream in the sperty rights or other lic sector undertaking, e case may be. 1s on Domi fic Award and Foreign Award. 3s. : Section 2 (7) mentions that ‘an award made under this Part shall be considered as a domestic award.’ The term “domestic award” has been used to distinguish it from “foreign award” which is dealt with in Part II of this Act. An award, even in respect of disputes arising out of international commercial transaction but made in arbitration proceedings conducted in India under Part I, shall be considered as “domestic award”. Therefore, if the place of arbitration is in India, then in view of section 2 (2) of the Act, the arbitral proceedings will be governed by Part I of this ‘Act. A foreign award is defined under Section 44 of the Act which is dealt with in Part Il of the Act. In an Arbitration proceeding, an Award passed under the provisions of Section 2 to 43 of Arbitration and Conciliation Act, 1996 is called a Domestic Award. . What is the meaning of the term ‘Arbitration’? ‘Ans, : ‘Arbitration’ means any arbitration whether or not administer by permanent arbitral institution. . What is the meaning of the term ‘Arbitral Institution’? ‘Ans. : ‘Arbitral institution’ means an arbitral institution designated by Supreme Court ora High Court under this Act [ inserted by 2019 amendment ] ‘Arbitral institution’ means an arbitral institution designated by Supreme Court or a Arbitrator? High Court under this Act. What is the meaning of the term ‘Arbitral Tribunal’? ering into any financial impartiality or might ongst the parties; Ans, : ‘Arbitral tribunal’ means the sole arbitrator or a panel of arbitrators. . What is the meaning of the word ‘Court’? of India, principles of Ans. : ‘Court’ means — mmercial laws, labour (i In case of an arbitration other than international commercial arbitration, the awards, domestic and | principal Civil Court of original jurisdiction in a district, and includes the High il best practices; and | Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject matter of the arbitration if the sameror 20. 21. 22. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS. had been subject matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small causes; (ii) In the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject matter of the arbitration if the same had been subject matter of a suit, and in other cases, a High Court having jurisdiction to hear appeal from decrees of courts subordinate to High Court [ substituted by 2015 amendment }. Explain what is ‘International Commercial Arbitration’? ‘Ans, : “International commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in for in India and where at least one of the parties is — (i) an individual who is a national of, or habitually resident in, any country other than India; or (ii) a body corporate which is incorporated in any country other than India; or (iii) an association or a body of individuals whose central management and control is exercised in any country other than India; or (iv) the Government of a foreign country. What is the meaning of the term ‘Legal Representative’? Ans. : “Legal representative” means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting. Explain the term “Arbitration”. ‘Ans. : Arbitration means the process by which parties to a dispute get the same settled through intervention of third person who may or may not be a permanent arbitral institution. Arbitration is a popular means of settling disputes in international, national and commercial spheres and an arbitration clause is usually incorporated in almost all business transactions and contracts. As a concept and as a process, arbitration is well embedded in commercial practices and social life in India for more than a century in the form of panchayats (as explained above). Axbite privat agree enforg In Hal disput both s juris 23. Write Ans. | as: 1. 2 3. 4.TIONS With ay Y Civil Co, F Small causes h Coutt in ex to the Arbitration Agreement. Inan arbitration, the parties enjoy certain privileges/ bargaining powers such Freedom to decide the Arbitrator/s : The parties enjoy the freedom to appoint any person as an arbitrator or name a person in the arbitration agreement as a sole arbitrator. 2. Parties can decide the Venue of proceedings : The venue of the proceedings can be decided by the parties irrespective to the place of cause of action, which is not the same as litigation for which the proceedings are strictly carried out according to jurisdiction. 3. Parties can decide upon the procedure of arbitration : Parties can decide their own procedure. Many disputes can be resolved on the basis of documents themselves even without a prolonged hearing, ts the estate of a the estate of the | Derson on whom 4. Parties can decide the language of arbitration : In arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the state of the competent court will be automatically applied, 5. Parties can decide the expert as an arbitrator : Unlike judicial proceedings, arbitration does not have to be presided over by a judge, Instead, parties could choose a subject matter expert or someone that has industry experience and who could better resolve the dispute between two parties. fe get the same be a permanent intemational, incorporated in | as a process, fe in India for 24, Explain the different types of Arbitration. Ans. : Following are different types of Arbitration — 1. Domestic Arbitration : As the term suggests, domestic arbitration means arbitration which takes place in India, wherein the parties are Indians and the dispute is decided in accordance with substantive law of India,Ase MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS | THE ARBITRATION ay 2. International Arbitration : International arbitration means an arbitration which 26. Defins rj takes place either in India or outside India, where there are ingredients of foreign Ams.: Asp origin in relation to parties or subject matter of the dispute and the dispute is comprehen: decided in accordance with substantive law in India or any other country. is the final 3. Statutory Arbitration : It is mandatory arbitration, which is imposed on the UNCITRA\ parties by operation of law. In such a case the parties have no option as such but definition nf to abide by the law of land. There ate large number of Central and State Acts, of arbitral a which provide for such arbitration. 4. Ad hoe Arbitration ; It means an arbitration agreed to and arranged by the 27. What are tt parties themselves without recourse to an arbitral institution. Ad Hloc arbitration, ae, It may be either domestic or international arbitration. 5. Institutional Arbitration : As the name suggests, institutional arbitration means) 28. What is the an arbitration conducted by an arbitral institution in accordance with the ‘Ans. : Final prescribed rules of such institution, claims (or a 25. What kind of disputes cannot be submitted to arbitration? Pa pone Ans. : There are certain matters which cannot be referred to arbitration such as: 28. What is int ( Matters which are criminal in nature cannot be referred to arbitration. In other Ams. : An q words, disputes relating to rights and liabilities which give rise to or arise out of award, Inten criminal proceedings appointmen (ii) Matrimonial disputes relating to divorce, judicial separation, restriction of Securing. am conjugal rights, custody ofa child cannot be referred to arbitration. under the As (iii) Matters relating to guardianship cannot be referred to arbitration. stage. (iv) Testamentary matters cannot be referred to arbitration. The question off 20 What is the genuineness or otherwise of a will cannot be referred to arbitration as the Pro! Ans. : This Court is the only court to determine if the probate of an alleged will shall subject to an issued. his statemer (v) Matters relating to Insolvency and bankruptcy and winding up of a comy hearing or t cannot be referred to arbitration. However, the official assignee or receiver proceedings refer to arbitration disputes arising between insolvent and his creditors. This is also (vi) Matters relating to Intellectual Property Rights (i.e., Copyright, Trade Mark] 31. What is the Patent, Geographical Indications and Designs) cannot be referred to arbitrati Ans. : Ifthe be made on (vii) Lunacy proceedings cannot be referred to arbitration. (viii) Matter relating to anti trust and competition laws cannot be referred to arbitratioQUESTIONS WITH ANSWER] gagrTRATION AND CONCILIATION ACT, 1996 Aso veans.an arbitration Whig) 9g, Define arbritration award. are ingredients of foreig ‘Ans. : As per Section 2 (1)(c), Arbitral Award includes an interim award. There is no lispute and the dispute j comprehensive definition of the term ‘award’ in the Act. In general parlance, award any other county. js the final determination of a particular issue or a claim in arbitration, The which is imposed on th UNCITRAL Model law has also left this expression undefined, However, this ave no option as such by definition must be read with Section 31 of the Act which deals with form and contents f Central and State Ac of arbitral award. 27. What are the different types of Arbitral Awards? ‘Ans. : The main types of arbitral awards are final, interim, default award, award on agreed terms, additional award, domestic award, foreign award. d to and arranged by ution, Ad Hoc arbitrati tutional arbitration mean) 28. What is the meaning of the term ‘Final Award’? in accordance with th Ans. : Final Award refers to an last award in an arbitration which disposes off all claims (or all claims remaining after the earlier interim award which dealing with part/ some claims) and terminates the arbitral proceedings. tion? to arbitration such as: | 2- What is interim award? ed to arbitration. In othe ANS. + An arbitral award has been defined in section 2 (1) (ec) include an interim give rise to or arise out award. Interim award is decided when certain urgent issues need to be decided like, appointment of receiver, obtaining interim injunction, appointment of guardian, securing an amount of dispute in arbitration etc. One can say that interim award separation, restriction ; on 7 under the Act is a final award on the matters covered thereby, but made at an interim to arbitration. stage. ) arbitration. ration, The question o) 30: What is the meaning of the term ‘Default Award"? arbitration as the Probe Ans. : This kind of award is covered under Section 25 of the Act which provides that f an alleged will shall subject to any agreement between the parties, if the respondent fails to communicate his statement of defense in accordance with the Act and fails to appear at an oral vinding up of @ company, _Hearing orto produce documentary evidence, the arbitral tribunal has to continue the | assignee ot receiver ci proceedings and make the arbitral award on the basis of evidence produced before it : and his creditors. This is also known as Ex-parte Award, Copyright, Trade Mark, 31. What is the meaning of the term ‘Award on agreed terms"? bereferred toarbitration) Ans. : Ifthe parti settle the dispute during the arbitral proceedings, an award ean be made on agreed terms. This is also known as Settlement Award. In a settlement t be referred to arbitration32. 33. 34. 35. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, award, the arbitral tribunal is not required to give a reasoned award. The arbitral tribunal may simply record the settlement arrived between the parties in the form of an arbitral award on agreed terms. What is the meaning of the term ‘Additional Award’? | ‘Ans, : Section 33 (4) empowers the Arbitral tribunal to make an additional award in, respect of claims already presented to the Tribunal in arbitration proceedings but “omitted by the Arbitral tribunal provided a party, with notice to other party, makes such request within thirty days of receipt of award. Ifthe arbitra tribunal considers the request made by a party to be justified, it shall make the additional arbitral award within sixty days ftom the receipt of such request. An arbitral award. ‘What is foreign award? ‘Ans. : An arbitral award made under Section 44 of Part II of this Act is called as foreign Award. What is the minimum and maximum number of arbitrators that are permitted jon an arbitral tribunal. ‘Ans. : The parties are free to determine the number of arbitrators, provided that suc number shall not be an even number. However, if the parties fail to determine the} number of arbitrators, the arbitral tribunal shall consist of a sole arbitrator. Usually, the arbitral tribunal consists of three arbitrators, one appointed by each party and the two arbitrators appoint the third presiding arbitrator. Explain the term International Commercial Arbitration. ‘Ans, : Asper Section 2 (1) (9, it means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial undet the law in force in India and where at least one of the parties is- (j) an individual who is a national of, or habitually resident in, any country othe! than India; or (i) a body corporate which is incorporated in any country other than India; or (iii) an association or a body of individuals ‘whose central management and cont is exercised in any country other than India; or (iv) the Government of a foreign country. {THE ARBITRATIO 36. 37. 38, Discuss Ans. ¥ up acer person g knowle¢ requiren his right not be a to both 4 which p person ¢ advanta tum arot What ar Ans, :U are fulfil 1. Now or . Kin 3. Pro -G witl Inother object a the obje waiver. applica where ¢ objectio his right Judicial manne! Ans. : 1S WITH ANSWapy] yg ARBITRATION AND CONCILIATION ACT, 1996 Ast af rd. The arbitral in the form gf itrator. ointed by ead) nutes arising o¥! an India; or ient and control 36. Discuss fully the doctrine of waiver as applicable to arbitration proceedings. ‘Ans. : Waiver, in general parlance means when a person gives up or agrees to give up a certain legal right or claim towards the other. It is a act or omission by which a person gives up its rights and claims. When a party, despite having full and clear knowledge about any non-mandatory provision of Part I compliance or any requirement under the arbitration agreement, fails to object, is said to have waived his right to object. The doctrine of waiver is based on the principle that a party shall not be allowed to blow hot and cold at the same time. Law does not permit a person to both approbate and reprobate. This principle is based on the doctrine of election which postulates that no party can accept and reject the same instrument and that ‘a person cannot say at one time that a transaction is valid and thereby obtain some advantage, to which he could only be entitled on the footing that it is valid, and then turn around and it is void for the purpose of securing some other advantage’. . What are the conditions for Waiver? Ans, : Under Section 4 of the Act, a waiver shall be implied ifthe following conditions are fulfilled: 1, Non compliance with any provision of Part I from which the parties may derogate or any requirement under the arbitration agreement, Knowledge of party of such non compliance. Proceeding with arbitration without stating his objection to such non compliance ~(i) without undue delay; or (i) ifa time limit is provided for stating an objection, within that period of time. In other words, there must be a clear knowledge of non compliance and legal right to object and proceeding with arbitration without objecting to non compliance or stating the objection within time, All the above conditions must be fulfilled to constitute waiver. Ifany one of these conditions is not satisfied the law of waiver would not be applicable and the right to object to non compliance shall not be lost. Therefore, where either a party has no knowledge of non compliance, or where he states his objection within time as soon as he was or becomes aware of the non compliance, his right to object is not lost. Judicial process is to assist arbitration process not to interfere? In how many manners the judicial powers be invoked, in process of Arbitration. Ans. : The intervention of all judicial authorities in arbitral process is barred exceptMULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS yg ARBITRATION to the extent provide in Part I which provides for intervention in the following ten © ‘matters: | ( Power of judicial authority to refer parties to arbitration where there is an @ arbitration agreement (Section 8). (ii) Power of Court to pass interim orders under Section 9. | | (ii) Appointment of Arbitrators under Section 11. 40. What ar iv) Application for terminating the mandate of Arbitrator under Section 14 (2). Ans: E (v) Where the Courts assistance is sought in taking evidence under Section 27. 1 itm (vi) Setting aside an award under Section 34. 2 The (vii) Enforcement of an award by the way of a decree under Section 36. 3H (viii) Appeals against certain orders under Section 37. a (ix) Directing delivery of award under Section 39 (2). (4) reference of a dispute to arbitration in insolvency proceedings under Section 41. Canan 4. Ans. / submit | 39. Write Short note on : Arbitration Agreement. inert ‘Ans. : Arbitration Agreement is an agreement worked out consciously by and between minor the parties to a contract. It is a process through which the disputes that might crop up against between the parties to a contractual transaction are provided to be resolved. It is an his duty independent contract in itself. 42, What i The Act defines Arbitration Agreement under Section 21) (b) tomean an agreement Mee referred to in Section 7. According to Section 7 (1) it means an agreement by parties . to submit to arbitration all or certain disputes which have arisen or which may arise ine between them in respect of a defined legal relationship, whether contractual or not. me Further Section 7 (2) to 7 (5) contain the following: aad 1. _Anarbitration agreement may be inthe form of an arbitration clause in a contract etwes or in the form of a separate agreement, and fo | ‘An arbitration agreement shall be in writing also il 3. Anarbitration agreement is in writing if it is contained in — includ (a) a document signed by parties; Anat (b) anexchange of letters, telex, telegrams or other means of telecommunication see an [including communication through electronic means] which provide a record of agreement; orONS WITH ANS Wap TON AND CONCILIATION ACT, 1986 the following ty “(oy anexchange of statements of claim and defence in which the existence of , the agreement is alleged by one party and not denied by the other. vhere there is (@) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the 4 reference is such as to make that arbitration clause part of the contract. What are the essentials of a valid Arbitration Agreement? Section 14 (2), “ans, : Essentials of valid Arbitration Agreement — er Session 2, 4, Itmust be in writing / Written Agreement. 4, There must be a present or future dispute contemplated between the parties. wae "3, There must be intention of the partes to submit to arbitration, and 4... The parties must be ad-idem. 4, Can a minor be a party to proceedings in arbitration? Ans, : A minor is not competent to enter into contract. Therefore, he cannot agree to submit to arbitration. However, an arbitration agreement may be made on behalf of minor by their natural guardian if it is made in good faith and for the benefit of the ly by and between minor or for the protection of his property and the guardian does not adverse interest hat might crop up against the minor. If the minor is not properly represented and his guardian fails in resolved. It is an his duty to protect his interest the award is not binding on the minor. What is the status of arbitration clause in a void agreement. ‘Ans. : An arbitration clause is considered as a separate contract which survives even if the underlying contract is voidable. Allowing an arbitration agreement to be automatically terminated along with the main contract would be akin to destroying precisely what the parties sought to create as a dispute resolution device. Therefore, - the arbitration clause even survives the termination of a contract whereby disputes ause in acontract | between the parties can be referred to the arbitrator. However, if the contract is illegal and forbidden by law, the arbitration clause which forms a part of such contract is also illegal and cannot be enforced. The taint of illegality attached to every part of it including arbitration clause. ean an agreement eement by parties ‘which may arise ontractual or not. An arbitration clause stands apart from rest of the clauses in the contract and gives lecommunication rise to collateral obligations. Since it constitutes an agreement by itself, itis not which provide a automatically affected by the fate of the main contract of which it forms a component part,Ash MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, 43. Under which provision, is it now obligatory on court to refer the parties to arbitration? Ans, : Section 8 clearly lays down that whenever a suit is filed in a civil court and the cause of action of said suit emanates from a contract in which the parties had voluntarily and willingly agreed to settle the dispute by arbitration, then, if the essentials of section 8 are met, it is the duty of court to refer the parties to the arbitration. By this section, it is intended to make arbitration agreements effective and prevent a party from going to court contrary to his own agreement. 44. State the Composition of Arbitral Tribunal. Ans, : Section 10 provides that “(1) The parties are free to determine the number of arbitrators, provided that such number shall not be an even number. (2) Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole arbitrator”. Section 10 (1) of the Act provides that despite the freedom govern to the parties to determine the number of arbitrators such number shall not be an even number, But in default of determination of number, section 10 (2) provides that the tribunal shall consists of sole arbitrator. Section 10 deals with number of arbitrators and Section 11 provides for appointment of arbitrators. This is how Arbitral Tribunal is constituted. 45. What should be the Nationality of an Arbitrator? ‘Ans. : Section 11 (1) clearly states that a person of any nationality may be appointed as an arbitrator, unless otherwise agreed by parties. Thus, parties may by agreement provide for appointment of a person of a particular nationality or prohibit the appointment of a person of a particular nationality, Such an agreement is perfectly valid and must be given effect to while making the appointment, 46. What are the grounds on which an arbitrator may be challenged? Ans. : Grounds on which an arbitrator may be challenged — 1. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall, without delay, disclose to the parties in writing any circumstances referred to in sub-section (1) unless they have already been informed of them by him. 2. An arbitrator may be challenged only if — (a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or ‘THE ARBITRATION 4 0) H 3. Apar he ha appoi 47, What are independ Ans. : Cir The Fifth give justif Arbitrator 1. Thea busin 2. Thes one o Relations 1. Thea toar 2. The Arbitrator 1. Thes an af 2. Ack the o 3. The: with party Previous 1, The parti cons unre no 0 ;STIONS WITH ANSWey in a civil court ang) hich the parties tration, then, if mine the number of aber. (2) Failing the| al shall consist of a ern to the parties to n even number, But at the tribunal shall| trators and Section bunal is constituted, y may be appointed may by agreement ity or prohibit the -ement is perfectly nged? ighout the arbitral es in writing any nave already been » his independence HE ARBITRATION AND CONCILIATION ACT, 1996 Ass. (b) he does not possess the qualifications agreed to by the parties. 3. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made. 47. What are the Circumstances giving rise to justifiable doubts as to the independence or impartiality of the arbitrators? Ans. : Circumstances giving rise to justifiable doubts The Fifth Schedule to the Act (Section 12 (1) (b)) sets out in detail the ground which give justifiable doubts as to the independence or impartiality of the arbitrators viz., Arbitrator s relationship with the parties or counsel 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. Relationship of the arbitrator to the dispute 1, The arbitrator has given legal advice or provided an expert opinion on the dispute toa party or an affiliate of one of the partes. 2. The arbitrator has previous involvement in the case. Arbitrator s direct or indirect interest in the dispute 1, The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held, 2, A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. 3. The arbitrator ora close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute. Previous services for one of the parties or other involvement in the case 1, The arbitrator has within the past three years served as counsel for one of the parties or an affiliate of one of the parties or has previously advised or been consulted by the party or an affiliate of the party making the appointment in an Unrelated matter, but the arbitrator and the party or the affiliate of the party have no ongoing relationship.Ass 49. . Circumstances under which a person would be ineligible for appointment. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, 2. The arbitrator has within the past three years served as counsel against one of the parties or an affiliate of one of the parties in an unrelated matter. Relationship between an arbitrator and another arbitrator or counsel 1, The arbitrator and another arbitrator are lawyers in the same law firm. 2. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration. Relationship between arbitrator and party and others involved in the arbitration 1, The arbitrator's law firm is currently acting adverse to one of the parties or an affiliate of one of the parties. 2. The arbitrator had been associated within the past three years with a party or an affiliate of one ofthe parties in a professional capacity, such asa former employee or partner. Other circumstances. Ans. : The Seventh Schedule of the Act [Section 12 (5)] sets out in detail the grounds which make a person ineligible for being appointed as an arbitrator, viz, Arbitrators relationship with the parties or counsel 1, The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party. 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. Relationship of the arbitrator to the dispute 1. The arbitrator has given legal advice or provided an expert opinion on the dispute toa party or an affiliate of one of the parties. 2, The arbitrator has previous involvement in the case. Arbitrator’ direct or indirect interest in the dispute 1, The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held. 2. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute. Write a short note on : Termination of arbitrator. Ans. THE ARBITRAY 51. hq ai a Ans.STIONS WITH ANSWERS unsel against one of. ied matter, unsel ne law firm, ‘otherwise affiliated rbitration, in the arbitration of the parties or an with a party or an ‘a former employee or appointment. 1 detail the grounds tor, viz., ther past or present °s or an affiliate of ion on the dispute ¢ of the parties or 51. ancial interest in ‘THE ARBITRATION AND CONCILIATION ACT, 1996 50, The mandate of an arbitrator shall terminate and he shall be substituted by another arbitrator if — (@) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay; and (©) he withdraws from his office or the parties agree to the termination of his mandate. 2. Ifa controversy remains conceming any of the grounds referred to in clause @ of sub-section (1), a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the mandate, 3. If under this section or sub-section (3) of section 13, an arbitrator withdraws from his office ora party agrees to the termination ofthe mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12, Mention the Grounds for terminating the mandate of an arbitrator and Methods of doing so. Ans. : Section 14 specifies three grounds for terminating the mandate of arbitrator and three methods of doing so — The three grounds for terminating the mandate are: () De jure, or (De facto inability to perform the functions assigned to the arbitrators ii) Any other failure to act without undue delay. The methods of terminating the mandate are: (The withdrawal of arbitrator from his office; (ii) An agreement of the parties; (iii) A decision by a court, Write short note on : Arbitral tribunal's power to order interim measures, ‘Ans.: A party may, during the arbitral proceedings or at anytime after the making of the arbitral award but before itis enforced in accordance with section 36, apply to the arbitral tribunal — (0 forthe appointment of a guardian fora minor or person of unsound mind forthe Purposes of arbitral proceedings; orMULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS (ii) for an interim measure of protection in respect of any of the following matters, namely — (a) the preservation, interim custody or sale of any goods which are the subject. ‘matter of the arbitration agreement; se (b) securing the amount in dispute in the arbitration. oa 52. Differences between Section 9 and Section 17 of the Act. pla Ans. : 2. To! Section 9 Section 17 art | 1. It provides for interim measures by | 1. It provides for interim measures by wi Court. the arbitral tribunal. 2. Court can exercise powers incertain | 2. Arbitral tribunal only deals with 3. Te matters of arbitration. subject matter of the dispute. to ! 3. It can be invoked at any time before | 3. It can be invoked at any time during 4 To the arbitral tribunal has been | the arbitral proceeding. Prior to the Prd constituted and not thereafter. Amendment Act of 2019, it could be 5. To However, by the Amendment Actof | invoked at any time during the pat 2015, the court may entertain an | arbitral proceedings or at any time to} | application after formation of arbitral | after the making of the arbitral 6 tribunal, ifit finds that circumstances | award but before it is enforced in exist which may not render the} accordance with section 36. = remedy provided under Section 17 || However, by the Amendment Act of To efficacious. 2019, the words “or at any time after To the making of the arbitral award but 9-418 before it is enforced in accordance with section 36” have been omitted. ie-aTo Thus, now, this section can only be ll, To invoked during the arbitral procee- Menta dings and not thereafter. 4. This section applies only when the | 4. This can be applied even ifthe place oe place of arbitration is in India. of arbitration is not in India, 1. To 5. It is amandatory section and cannot This section can be excluded by 2. To be excluded by agreement between | explicit agreement/ clause between 3. To the parties. the parties. 4 Te 6. Orders under this Section are Orders under this Section are appeal- 5, To appealable under Section 37 (1) (b) | able under Section 37 (2) (b) ‘ONS WITH ANSWERS | y¢ aRBITRATION AND CONCILIATION ACT, 1998 ollowing matters, ch are the subject- 17 ‘im measures by : only deals with e dispute. any time during ling, Prior to the 2019, it could be |) ime during the s or at any time of the arbitral it is enforced in h section 36. mendment Act of rat any time after rbitral award but ed in accordance wve been omitted. stion can only be arbitral procee- ter {even ifthe place tin India, be excluded by / clause between ection are appeal- 137 (2) (b) 53. Write short note on “Powers of Arbitral Tribunal”. Ans. L 9. 10. ub |. Mention the Duties of Arbitral Tribunal. Ans. yee en To determine any issue relating to procedural aspects of arbitration (except under section 28 ) under Part I of the Act where parties have not determined it or authorized the arbitral tribunal to determine it. For instance, to determine the place, language, procedure etc, for conduct of arbitration proceedings. To rule on its own jurisdiction and decide objections raised by a party during arbitration proceedings regarding the competence of an arbitrator or of the arbitral tribunal, it own jurisdiction or scope of authority, existence or validity of arbitration agreement and challenge of appointment of arbitrator. To order a party to take interim measure of protection and also to order a party to provide security for carrying out interim measures, ‘To encourage parties to settle the dispute at any time even whilst the arbitration proceedings are on by mediation, conciliation or other procedures. To appoint one or more experts to report to it on specific issues and require the party to give the expert any relevant information or to produce or provide access to any relevant documents, goods or other property for inspection. ‘The arbitral tribunal need not follow the technical rules, procedure and evidence as provided under the Code of Civil procedure, 1908. To seek court’s assistance in taking evidence. ‘To order parties to make deposits as advances fro meeting the cost of arbitration. To decide on limitation. To award interest. To order termination of arbitral proceedings. Duties of Arbitral Tribunal are as follows — To disclose his/ her interest, if any, in relation to the parties. To give equal opportunity to the parties. To ensure they conform to the principles of natural justice. To comply with procedure as laid down in arbitration agreement. To act jointly where the arbitral tribunal consists of more than one arbitrator.56. 87. To keep parties informed of communication received, 7. To give proper and adequate notice of hearings, 8: To give a reasoned award and make the award in the form preseribed unde Section 31. 9. To deliver to all the parties a signed copy of the award, }. Equal Treatment of parties and principles of natural justice are basis in conduc, of arbitral proceedings. Discus: Ans. + Section 18 states that “The parties shall be treated with equality and each party shall be given a full opportunity to present his case”, Section 18 requires the Arbitrator to treat the parties with equality (that is to say) without bias) and give each party full opportunity to present his case By this section, a twofold duty is cast upon the arbitral tribunal / arbitrator which Fequires that the arbitral tribunal must act independently and impartially and mus! give each party a full opportunity of being heard and present his case. This section enunciates the principles of equality and natural justice and makes it mandatory on the Arbitrator to follow the same. Natural justice is an inseparable ingredient of faimess and reasonableness. Natural justice is the essence of fai ‘adjudication, deeply rooted in tradition and conscience, to be ranked as fundamental The purpose of following the principles of natural justice is prevention of miscarriage of justice. ‘Though, the arbitrators are not bound by the technical rules which prescribe a striel Procedure for courts but arbitral [proceeding must conform to the principles of natural justice. These principles which have always been pre-requisites of any arbitral Proceedings, except where the parties have agreed otherwise, are now enshrined in Various provisions of the Act itself Explain the maxim Nemojudex in causasua, ‘Ans. : Nemo judes in causa sua which means No one should be made a judge in hs Guin cause or the rule against bas, Itis the minimal requirement ofthe natural justice that the authority giving decision must be composed of impartial persons acting fairly, without prejudice and bias. Explain the maxim Audi alteram partem. ‘Ans, : Audi alteram partem means hear the other party or the rule of fair hearing ot 59. with he other ps commu of this What s Ans. : P to decid regard t Q)) Notwith tribunal appropri the parti In other agree on Section arbitratic conduct its mem In dome: to the agi generally to the cor What is. Ans. :U a particu referredof the natural justice rtial persons acting le of fair hearing of .pBITRATION AND CONCILIATION ACT, 1996 the rule that no one should be condemned unheard. ‘The parties should be given proper hearing to present their case, 3, Can failure of arbitrator to provide a copy of documents submitted to it to the other party be constructed as a breach of principles of natural justice? Ans. : The arbitral tribunal must give each party full opportunity to present his case. Section 23 relates to statement of claim and defence and section 24 relates to dealing with hearing of written proceedings. The arbitral tribunal must communicate to the other party any documents/ evidence received by it from the other party, Failure to communicate would not only amount to breach prineiples of natural justice but also of this section and Section 24 of the Act. ). What should be the place of arbitration? Ans. : Parties are free to agree on the place of arbitration. (20 (1)] In case of failure to decide, the place of arbitration shall be determined by the arbitral tribunal having regard tothe circumstances of the case, including the convenience ofthe parties, [20 Q) ‘Notwithstanding that the place of arbitration has been determined as above, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property. [20 (3)] In other words, Section 20 (1) leaves no room for doubt that the parties are free to agree on the place of arbitration, In the absence of the parties agreement thereto, Section 20(2) authorizes the arbitration tribunal to determine the place of such arbitration. Section 20(3) enables the arbitration tribunal to meet at any place for conducting hearings ata place of convenience in matters such as consultations among its members for hearing witnesses, experts or the patties. {In domestic arbitration, the place of arbitration can be anywhere in India according to the agreement of the parties. If arbitration is under the rules of an institution, itis ‘generally conducted atthe place where the institution is located, subject to agreement to the contrary, . What is the date of commencement of Arbitration Proceedings? Ans, : “Unless otherwise agreed by the patties, the arbitral proceedings in respect of 2 particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent ”as2 61. 62. 63. 64, MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS Tespondent fails to appear or respond, the tribunal shall proceed with the matter ex THE ARITRANIC . What is the provision regarding language of arbitration? parte. § Ans. Section 22 of the Act gives freedom tothe parties to agree upon the language justice, or languages tobe used in arbitral proceedings. It provides that the Tribunal subject 05. Wiltal to agreement between the parties has the power to determine the language to be used oat in arbitral proceedings. ae Inthe event there being no agreement inthis regard or upon failure ofthe parties to ome agree upon common language or languages, the arbitral tribunal shall determine the otherwil language or languages to be used any rele What is Statement of Claim? goods o1 Ans. : Statement of Claim isa statement made by the Claimant setting out its claims There m against the Defendant / Respondent. The statement of claim generally contains the advice 0 matters of disputes, breaches and liabilities arising therefrom. The Claimant sets out section t in detail the facts ofthe case and the circumstances which led to the disputes between Arbitral the parties and thereby seeking a claim against the Defendant. knowlec Will the arbitral proceedings terminate if the respondent fails to submit ey ‘statement of defence to the arbitrator? indepen ‘Ans. The Act under Section 25 empowers the arbitrator to terminate the proceedings ed Where the without any sufficient cause, the claimant fils to communicate his statement een of claim within the stipulated period. However, ifthe respondent fails to submit his eae statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of | 66. What is. claimant's allegations. However, this section is subject to an agreement to contrary Ans.: TI between the parties. In other words, the consequences of default can be avoided by ‘from eq contrary agreement or by showing sufficient cause, The aim of this section is to it refers allow arbitral tribunal to resolve the dispute by continuing with arbitral proceedings consider and making the award even if one or other party adopts delaying tacties to drag the @eweal proceedings. An: What are the powers of arbitral tribunal to proceed ex parte? than one Ans, : The arbitral tribunal is empowered by Section 25 (b) to proceed ex parte in | of all its aiven circumstances. But before doing so, it ust make known his intention to proved 2, Notw ex parte by giving a proper notice in clear tetms, informing the date, time and venue of the af and the fact that itintends to proceed ex parte If despite such preemptory notice, the arbitratorNS WITH ANSWERS | 1 ARBITRATION AND CONCILIATION ACT, 1996 As parte, Such notice is required tobe given in order to observe the principles of natural yon the language justice, ifthe same is not given, it can be challenged under Section 34 of the Act. Tribunal subject _ Write short note on : Power of arbitral tribunal to appoint expert under section guage to be used 26. ‘Ans. : By this section, the Act empowers he Tribunal to appoint one or more experts of the parties to to report to it in specific issues to be determined by the Arbitral Tribunal, unless otherwise agreed by the parties. This provision also requires the party to give expert any elevant information orto produce, or provide access to any relevant documents, goods or other property for his inspection. ing out its claims “There may be instances where the arbitral tribunal needs certain specific professional ally contains the| advice or expertise ina particular case for instance, an engineer, surveyor ete. This Claimant sets out section therefore empowers the arbitral tribunal to appoint one or more experts. disputes between [Arbitral tribunal may take the assistance of professionals possessing specialized knowledge, skill or expertise in various fields. Since individual arbitrators are appointed by the parties more because of their confidence in their sense of justice, independence and impartiality than for technicalability itis, therefore, permissible ] totake assistance in technical matters in so far as it is mecessary for discharging theit duties as arbitrators but they cannot delegate the burden of deciding any issue in the case. They must themselves deliberate on the report of an expert and determine the specific issue based upon their own judgment whilst giving a decision in the matter. fails to submit ¢ the proceedings cate his statement fails to submit his tor shall continue an admission of . What is the meaning of ex aequo et bono? ement to contrary | ‘Ans. : The phrase Ex aequo et bono (Latin for ‘according to the right and good” or zan be avoided by “from equity and conscience’) is used asa legal term of art Inthe context of arbitration, ‘this section is to it refers to the power of arbitrators to dispense with consideration of the law but bitral proceedings consider solely what they consider to be fait and equitable in the case at hand. tacties to drag the . How can the award be passed if the arbitrators differ in opinion? ‘Ans. : 1. Unless otherwise agreed by the parties, in arbitral proceedings with more ? than one arbitrator, any decision of the arbitral tribunal shall be made by a majority roceed ex parte in of all its members. ntention to proveed 2, Notwithstanding sub-section (1), if authorised by the parties or all the members te, time and venue of the arbitral tribunal, questions of procedure may be decided by the presiding mptory notice, the arbitrator. with the matter ex68, 69. 70. 71, MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS In simpler words, if the parties have not agreed otherwise, in arbitral proceeding, with more than one arbitrator, any decision of the arbitral tribunal should be made by ‘majority of all its members. The term any decision includes an interim decision op any question including interim award, However, the decision by majority of members is not necessary for deciding questions of procedure, Such questions of procedure may be decided by the presiding arbitrator alone if he is so authorised by the parties or by all the members of the arbitral tribunal. Write a Short Note on Fast Track Arbi Ans, : Fast Track Arbitration is a form of arbitration in which the arbitration procedure is rendered in a particularly short period of time and at reduced costs, Rule 44 of the Indian Council of Arbitration describes the fast tack procedure as follows : jn ‘The Parties may opt for Fast Track Arbitration and request the arbitral tribunal, before the commencement of the arbitration proceedings, to decide the reference in a fixed time frame of 3 to 6 months or any other time agreed between the Parties, according | to the Fast Track Arbitration procedure. What is Arbitr Ans. : An arbitral award is an instrument embodying the decision of the arbitral tribunal, given after determination in a quasi- judicial manner of matters in dispute between two or more contending parties, referred in pursuance of valid written arbitration agreement between them providing for such reference giving arbitrators the power to decide and imposing a duty which makes it ineumbent upon the parties to obey the decision arising from the submission. Itis in effect a final adjudication of a private or domestic tribunal set up by the parties, own choice or consent, Award? What are th Ans. : The Essential elements of an Arbitral award~ According to the Act are as follows — 1. Shall be in writing [Section 31 (1)] 2. Shall be signed by members of Arbitral Tribunal [Section 31 (2)] 3. Shall state the reasons on which the Award is based [Section 31 (3)] intial elements of an arbitral award? State whether the signatures of all the arbitrators is compulsory on arbitral award. Ans. : In arbitral proceedings with more than one arbitrator, the signatures of theWITH ANSWERS | proceedings id be made by, m decision or y of members ‘of procedure. by the parties tion procedure Rule 44 of the lows : ribunal, before fence ina fixed ties, according | of the arbitral atters in dispute | of valid written ving arbitrators upon the parties | | adjudication of onset. 0 the Act are as ] 1(3)) isory on arbitral signatures of the ue ARBITRATION AND CONCILIATION AC, 1998 inajorty ofall the members ofthe arbitral tribunal shall be sufficient so Jong as the yeason for any omitted signature is stated. This Sub section 2 is an exception to ‘the requirement of signing of award to all members ofthe arbitral tribunal. . It permits signing of an award by majority of arbitrators ‘with the only condition that the reason forthe omission of signature of the defaulting arbitrator is stated jn the award. Tis provision jis intended to ensure that making of an award by multi member arbitral. Fibunal is not delayed due to non availability of one ofthe arbitrators 10 sign the award ot his refusal to do so including his dissenting opinion. . Ig it mandatory for an arbitrator to give reasons for the Award? ‘Ans. + It is imperative that an award should be a reasoned award, Subject to two exceptions ~ (a) the parties have agreed that no reasons are to be given, or (b) the award is an arbitral award on agreed terms under seetion 30, | What is a Speaking Award and a Non-Speaking Award? ‘Ans. +A speaking award isan award that speaks for itself ie, a reasoned award. ‘The award should stand the test of legality, fairness and reason at all the higher appellate forums. That is the award should contain all the details ofthe issue, clear findings and should be a easoned one. However, a non-speaking award is an award that is not a speaking order, that i the reasons for the findings are not given Where auaward is passed without a discussion on the background thereof, reasons and clear findings. |. When an arbitration proceedings gets terminated? [Ans : Section 32 provides thatthe arbitration proceedings shall stand terminated in the following cases: 1. Onmaking of final award : The expression final award means an award which is effective adjudication complete on all matters referred to arbitration, Once the final award is made, the arbitration proceedings come to an end and are terminated. 2. Byorder of arbitra tribunal : Under certain circumstances the arbitral tribunal may order termination of arbitration proceedings. The cieumstances under which the arbitral tribunal can order termination of the proceeding without making final award are ~75. Answer in brief : What are the provisions relating to correction, interpretation and additional award? ‘Ans. : This section contemplates the cases in which an award or an additional award can be corrected or interpreted and provides as follows: (1) Within thirty days from the receipt of the arbitral award, unless another period MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS. (a) Where the claimant withdraws his claim : When the claimant withdraws his claim, the arbitral tribunal shall order termination of proceedings. However, the termination will not b ordered if the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute. When the arbitral tribunal recognises such legitimate interest, then it may, instead of ordering termination, proceed with the arbitration and make an award (b) Where the parties agree on the termination of the proceedings : The arbitral tribunal shail issue an order of termination of proceedings when the parties agree on the termination of the proceedings. Such agreement of the parties tantamount to cancelling particular reference but the parties would be free to make another reference on the same subject matter by reconstituting another tribunal (c) When the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible : The proceedings would become unnecessary of the purpose of arbitration is lost. Impossibility would arise from circumstances such as act of god, terrorist attack or such force majeure situations. It might also arise when. both parties do not contribute to the proceedings and if the claimant fails to file its statement of claim. In any case itis the arbitral tribunal's discretion. He can order termination if satisfied that the proceedings have either become unnecessary or impossible. of time has been agreed upon by the parties — (a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award; (b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award. {THE ARBITRATIO} 76. (3) Th (4) Un (5) lft (6) Th ) Se an Within in Awa Ans. :| justifie of such . How al Ans. : | only if (@) th tri o bs (SSTIONS WITH ANSWERS claimant withdraws jion of proceedings, | espondent objects to imate interest on his | n the arbitral tribunal instead of ordering n award, vedings : The arbitral ings when the parties | cement of the parties sarties would be free er by reconstituting n of the proceedings | , impossible : The ose of arbitration is such as act of god, | ight also arise when ‘the claimant fails to ribunal’s discretion, shave either become tion, interpretation an additional award nless another period : arbitral tribunal to phical errors or any 1e other party, may fa specific point of 76. 7. ‘HE ARBITRATION AND CONCILIATION ACT, 1996 Ast (2) If the arbitral tribunal considers the request made under sub-section (1) to be Justified, it shall make the correction or give the interpretation within thirty days from the receipt ofthe request and the interpretation shall form part ofthe arbitral award. ()_ The arbitral tribunal may correct any error of the type refered to in clause (a) of sub-section (1), on its own initiative, within thirty days from the date of the arbitral award, (4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award, ) Tthe arbitral tribunal considers the request made under sub-section (4) to be Justified, it shall make the additional arbitral award within sixty days from the receipt of such request. (6) Thearbitral tribunal may extend, ifnecessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5). (2) Section 31 shall apply to.a correction or interpretation ofthe arbitral award or to an additional arbitral award made under this section. Within how many days an arbitral tribunal in Award on its own initiative? Ans. : If the arbitral tribunal considers the request made under sub-section (4) to be Justified, it shall make the additional arbitcal award within sixty days from the receipt of such request. ‘empowered to make correction How and in what circumstances may an arbitral award be set aside? Ans. 1 Section 34 (2) lays down that, an arbitral award may beset aside by the Court only if — (@) the party making the application establishes on the basis of record of the arbitral {ribunal that — [Please note that the words “establishes on the basis of record ofthe arbitral tribunal” herein have been substituted for “furnishes proof that” by the Arbitration and Conciliation (Amendment) Act 2019] (i) a party was under some incapacity, orAse MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS | que ARBITRAY (i) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or arbitra only tf arbitrs (iii) the party making the application was not given proper notice of the aside, appointment of an arbitrator or of the arbitral proceedings or was otherwise . What tunable to present his case; or with j Ans, : good « would Gv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, of it contains decisions on matters beyond the scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with this P: or (b) the Court finds that — @ the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conflict with the public policy of India, 78. In which court an application for setting aside an award is made? Ans. : Application for setting side an award can only be made only before the principal civil court of original civil jurisdiction as defined under Section 2 (1) (e) of the Act and not before the court or judicial authority which referred the parties to arbitration. 79. Can an arbitration award be set aside when the arbitral award deals with a dispute not contemplated or decides matters which are beyond the scope of submission? Ans. : The jurisdiction of arbitral tribunal is limited by the terms of the submission. to arbitration. It cannot traverse beyond the terms of submission to arbitration, if it does so, it acts without jurisdiction. However, if a decision on matters submitted torecy STIONS WITH ANSWERS | _1HEARBITRATION AND CONCILIATION ACT, 1996 arbitration can be separated from those not submitted, then instead of entire award only that part may be set aside which contains decision on matters not submitted to arbitration, But where the decision is not severable, the whole award will be set to which the parties ander the law for the aside. proper notice of the ings or was otherwise 40, What is public policy? When can an arbitral award be said to be in conflict with public policy? Discuss. “Ans. The concept of pubic policy connotes some matter which concerns the public good and public interest and as to what is for public good or in public interes! OF ‘vould be injurious or harmful to public good or public interest is not constant but keeps on changing and has varie from time to time. Therefore, from the very nature public poly appears to be incapable ofa precise definition. The term “public policy” rey was not defined / clarified under the Arbitration and Conciliation Act, 1996 and hence the term remained ambiguous. ‘The explanation provided by sub-clause (ji), by means of the amendment Act of 2015, has defined the scope and meaning of the expression where the arbitration ‘award shall be contemplated to be against public policy only if— (j) the making ofthe award was induced or affected by fraud or corruption oF was in violation of section 75 or section 81; of Gi) itis in contravention with the fundamental policy of Indian laws or Gi iv isin conflict with the most basie notions of morality or justice, ated by or not falling it contains decisions bitration: | | to arbitration can be| + of the arbitral award to arbitration may be 1 procedure was not in | ss such agreement Was ich the parties cannot ordance with this Part; sttlement by arbitration 81. When an award becomes final? jey of India. , . oe ‘Ans. : Subject to provisions of Part I, an arbitral award shall be final and binding on dis made? the parties and persons claiming under them respectively. [Section 35] only before the principal ‘The word ‘final’ inthis context means that, as between the parties to reference and ion 2 (1) (e) of the Act persons claiming under them, the award is conclusive asto the issues which it deals, he parties to arbitration. ‘unless and until there is a successful challenge to the award. 82. Answer in one or two sentences : Lien ‘on Award. ‘Ans. : Subject to the provisions of sub-section (2) and to any provision to the contrary . jin the arbitration agreement, the arbitral tribunal shall have a lien on the arbitral terms of the submission award for any unpaid costs of the arbitration. ission to arbitration, if on matters submitted t0) al award deals with 4 @ beyond the scope ofaro MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS | rE ARBI 83. Explain effect of death of a party on arbitral proceedings. Ans. : The death of'a party will not operate as a revocation of the arbitration agreement and the agreement will be enforceable by or against the legal representative of the deceased party provided that the right to sue or be sued survives. The effect of the death of a party to an arbitration agreement is as follows: (i) Where the cause of action is not of personal nature and the right to sue and be sued survives, the death of a party — (a) Shall not operate to discharge the arbitration agreement, and in such an event it shall be enforceable against the legal representative ofthe deceased; | ®® “ (b) To the reference shall not terminate the mandate of arbitrator appointed by i him. The reason for this is that once an arbitrator is appointed he ceases to be the representative of the appointing party and becomes an arbitrator for | 87. W all the parties to the reference. A (ii) Where the right of action is extinguished by the death of a person by operation of any lav, on the death of a party ~ (a) The arbitration agreement will be discharged and (b) Ifthe reference has already been made the mandate of arbitrator will stand terminated. _ | 84. Explain effect of insolvency of a party on arbitral proceedings. An The effect of insolvency of a party is as follows: . (i) Where a party to a contract containing the arbitration clause providing for reference of future disputes arising thereout or in connection therewith shall be submitted to arbitration, later becomes insolvent [i.e., the contract was entered by the party before being adjudged insolvent] the receiver has the option either to adopt the contract or disclaim it. If the receiver adopts the contract, Section 41 (1) will apply and the arbitration clause shall be enforceable against him so far as it relates to any such dispute. (ii) However, if the receiver does not adopt the contract and the case is not covered under Section 41 (1) above, then, any other party or the receiver may apply to the judicial authority having jurisdiction in the insolveney 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 i 88,NS WITH ANSWERS | je ARBITRATION AND CONCILIATION ACT, 1996 am is of opinion that, having regard to all the circumstanees of the case, the matter ration agreement ought to be determined by arbitration, make an order accordingly. esenta e ofthe | 46. Bar of Limitation under Section 43 of the Act. follons | Ans, : The purpose of section 43 of the act is to make Limitation Act applicable to | arbitrations as it applies to proceedings in court. Hence, provisions of Limitation uht to sue and be ‘Act would apply to all proceedings under the Act, both in courts and in arbitration | except to the extent expressly excluded by the provisions of the Act. , and in such an 86. Who is a Chairperson as per the Arbitration council of India? ofthe deceased; : ‘Ans. : “Chairperson” means the Chairperson of the Arbitration Council of India Yor appointed by inted under clause (a) of sub-section (1) of section 43C. sicite tian appointed under clause (a) section 43C. “an arbitrator for | 87. What are the Duties and Functions of the Council? ‘Ans. 1 Duties and Funetions of the Couneil are as follows — son by operation 1. Itshallbe the duty of the Council to take all such measures as may be necessary topromote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism and for that purpose to frame policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration. itrator will stand 2, For the purposes of performing the duties and discharging the functions under this Act, the Council may — ath (a) frame policies governing the grading of arbitral institutions; ae a (b) recognise professional institutes providing accreditation of arbitrators; ser eiadentered (c) review the grading of arbitral institutions and arbitrators; the option either (a) hold training, workshops and courses in the area of arbitration in contract, Section collaboration of law firms, law universities and arbitral institutes; e against him so (e) frame, review and update norms to ensure satisfactory level of arbitration se is not covered 88, As perthe Eights Schedule what are the Qualifications and Experience needed ‘er may apply to of a Arbitrator? yeeedings for an to arbitration in thority may, if it ‘Ans. : A person shall not be qualified to be an arbitrator unless he — (i) is an advocate within the meaning of the Advocates Act, 1961 having ten years of practice experience as an advocate: or93. 94. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, which either of the two aforementioned convention applies. The Indian law does not Cou define convention awards but the English Arbitration Act, 1975, which implements Ilof the New York convention provides that “a convention award means an award made bea in pursuance of an arbitration agreement in the territory ofa State [other than U. K], part which is a party to New York Convention. The expression ‘foreign award’ is defined | Cod in Part II of the Act in relation to New York convention in Section 44 and in relation | to Geneva Convention in Section $3. This definition cannot apply universally buy} 6° WH _vill apply only where the New York convention and the Geneva Convention applies ang In other words, the New York convention Awards and the Geneva Convention Awards An are, in fact, Convention awards but in Sections 44 and 53, they have been designated nd as foreign awards. @ What is foreign award. @ Ans, : “Foreign award” means an arbitral award on differences between persons 7 arising out of legal relationships, whether contractual or not, considered as commercial | (ii ‘under the law in force in India, made on or after the 11th day of October, 1960 — . . (@) in pursuance ofan agreement in writing for arbitration to which the Convention @) set forth in the First Schedule applies, and (b) in one of such territories as the Central Government, being satisfied that wv) reciprocal provisions have been made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies. When is an award in conflict with the public policy of India? 97. Wh ‘Ans, : An award is in conflict with the publie policy of India, only if, — ant (@) the making of the award was induced or affected by fraud or corruption or was Ad in violation of section 75 or section 81; or 53. (ii) itis in contravention with the fundamental policy of Indian law; or L (iii) it is in conflict with the most basic notions of morality or justice. | ‘When is a Foreign Award enforceable? ‘Ans. : Under this section, the Court needs to be satisfied that the foreign award is) enforceable under this Chapter, once the court is satisfied regarding the same, the award shall be deemed to be a decree of that Court, 2. ‘The prayer of the petitioner that the court should enforce the award cannot be granted] under the provisions of the 1996 act. Section 49 of the Act merely empowers the/E QUESTIONS WITH ANSW: | HE ARBITRATION AND CONCILIATION ACT, 1996 ATS *s. The Indian law does n, Court to declare that the Foreign Award is enforceable under the provisions. of Chapter , 1975, which implemeng, Ilof the Act. The moment such a declaration is granted, an award shall be deemed to ard means an award ma bea decree of the Court. Once its deemed to be a decree ‘of the Court, it is open to the fa State [other than U. ky partis to seek its execution in accordance with the provisions of the Civil Procedure ‘foreign award’ is defi Code, 1908. Section 44 and in relatic P snot apply universally by saeva Convention apple |" The conditions requited to be fulfilled in order to qualify as a foreign award eneva Convention Awar under the Geneva Convention are as follows:- (i) The arbitral award should have been made after the 28th day of July, 1924, and (i) It should be made on differences relating to matters considered as commercial under the law in force in India, and 96. Whatare the conditions required to be fulfilled in order to qualify as a foreign award under the Geneva Convention? they have been designate Sain i) I should be in pursuance of an agreement for arbitration to which the Geneva sconsidered.ascomneny Protocol, 1923 set forth in the Second Schedule applies, and day of October, 1960 — Sona Comeall Liv) It should be made between persons who are subject to different Contracting nto which the Conventio States, declared by Central Government (by a Gazette Notification) as having reciprocal provisions for application of the Geneva Convention, and rent, being satisfied th ion in the Official Gazet 1 applies. (v) Itshould have been made in one of the territories declared by Central Government (by a Gazette Notification) as having reciprocal provisions for application of the Geneva Conventi f India? : 87. What are the difference between Section 44 under the New York convention dia, only if, — and Section 53 under the Geneva Convention? Ans, : Difference between Section 44 under the New York convention and Section 53 under the Geneva Convention are as follows: aud or corruption or wi Indian law; or Section 53 of the Act as well as The Geneva Protocol, 1923, does not qualify the term agreement. Therefore, itis open to the courts to determine the existence of an arbitration agreement by reference to particular facts and circumstances ofeach case, Whereas Section 44 of the Act insists upon an arbitration agreement in writing and Article II of the New York Convention states the circumstances ‘under which an agreement will be deemed to be in writing. Under Geneva Convention, the reciprocity reservation is inherent, whereas the New York convention requires such reservation to be expressly declared. Y OF justice. that the foreign award i 1 regarding the same, th e award cannot be granted] et merely empowers tMULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS. 3. The New York Convention does not require diversity of nationality of the parties to the arbitration agreement as is the case in the Geneva Protocol. Explain the conditions for enforcement of foreign awards under the Geneva Convention. Ans. : Conditions for enforcement of foreign awards under the Geneva Convention, are as follows:= In order that a foreign award may be enforceable under this Chapter, it shall be necessary that — (a) the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto; (b) the subject-matter of the award is capable of settlement by arbitration under the law of India; (©) the award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure; (4) the award has become final in the country in which it has been made, in the | sense that it will not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending; (e) the enforcement of the award is not contrary to the public policy or the law of | India. 99. What is Conci n. Ans. : Conciliation is a process of persuading parties to reach to a settlement. It is a method adopted by the parties to a dispute to reach an amicable settlement thereof by mutual compromise with assistance ofan independent third person or institution. ‘The Act provides for Conciliation of disputes under Sections 6] to 81. Conciliation can be adopted at any stage of the dispute. Parties are also permitted to engage in conciliation process even while the arbitral proceedings are on. 100. Who can be a Conciliator. Ans, : The conciliator must be an impartial person. The parties should be able to repose trust and confidence in him so as to enable them to shate their secrets and their thinking process with the conciliator with the belief that the same will not be divulged to other party without specific instructions in that regard. The responsibility 101NS WITH ANSWeERG|_qHEARBITRATION AND CONCILIATION ACT, 1996 an of conciliator is to assists parties by helping them to initiate and develop positive dialogue, clarify misunderstandings, create faith upon one another and generate an amicable atmosphere in order to resolve thelt disputes. lity of the parties col. der the Geneva sot. Explain the advantages of Conciliation. ‘Ans. : Advantages of Conciliation 1, No prior agreement necessary : Provisions of Part II relating to conciliation «can be invoked by parties having disputes arising out of legal relationships ‘hether contractual or not. No prior agreement 'S necessary for resort to onilition, Conciliation can be availed of even during pendency of arbitration proceedings. Infact, the Act contains an exPre*® provisions under Section 30 ({)tothe effect that encouragement of ‘conciliation by the arbitral tribunal during the arbitral proceedings to help the parties arrive at 8 settlement. conomical, cost effect and neva Convention apter, it shall be bitration which is nitration under the | 2, Cost effective process : Conciliation is an & expeditious mechanism for resolution of disputes in comparison to litigation nd arbitration, which makes it an excellent ADR Mechanism. The conciliator follows a simplified procedure suited to the convenishc® of the parties and keeping in mind the need for speedy settlement of the dispute, 3, Informal Proceedings : Conciliation hasan advantage of informal proceeding comise o negotiated settlement -in the submission | the parties and in been made, in the sposition or appeal | testing the validity to reconcile disputing parties toarrive at a comps which has a statutory sanction and which is arrived by minimum outside help. Usually, cordial relations continue to exist and the parties remain at amicable and friendly terms after the compromise or setlement agreement. yolicy or the law of 4. Confidentiality : As opposed to judicial proceedings conciliation is a private process and therefore offers privacy and confidentiality, In fact confidentiality Fa coneiliation proceedings is a statutory guarantee The conciliator and the parties are supposed to keep confidential ll matters relating tothe coneitiaion a settlement. Itis a - settlement thereof erson or institution. to 81, Conciliation mitted to engage in proceedings 5, Settlement Agreement : The settlement agreement drawn up in conciliation proceedings has the same status and effect aS ifit is an arbitral award on agreed ems on the substance of the dispute rendered by an arbitral tribunal under section 30 of the Act. Therefore, the settlement agreement in conciliation is cxeoutable as a decree of the civil court. It is open 19 18 party to apply for execution of the settlement agreement by filing an execution petition before the es should be able to are their secrets and the same will not be d. The responsibility civil court.| are 6. 102. Difference between conciliation and arbitration. Ans, : MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS, Convenience of Parties/Party autonomy : Conciliation is flexible and convenient, The patties are free to agree on the procedure to be followed by the conciliator, the time and venue of the proceedings and thus eventually control the process. The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of. the case, convenience of the parties and the wishes the parties may express. Conciliation Arbitration 1 a 3. 4, 5 Conciliation is applicable only to | 1. Arbitration is available for existing existing disputes. as well as future disputes. No prior agreement to submit to | 2. Prior Agreement between the parties conciliation is necessary in case of | to submit existing or future disputes conciliation between the parties. to arbitration is necessary. ‘The party initiating conciliation shall | 3. In an arbitration agreement, the send to the other party a written | substance of dispute must be clearly invitation to conciliate, briefly. mentioned. Usually, the parties identifying the subject ofthe dispute. | __ incorporate a clause saying that any [Section 62] The invitation can be | and all disputes arising out of the accepted or rejected by the other | contract must be ‘referred to party. arbitration and the parties are bound by the same. ‘Where the parties do not determine | 4. Where the parties do not determine the number of conciliators, the act | the number of arbitrators, the act envisages that there shall be sole | envisages that there shall be sole coneiliator. However, the maximum | arbitrator. However, there is no bar number on case of conciliators | on the maximum number of cannot exceed three, arbitrators provided itis not an even number. In case of appointment of three | 5. In case of three arbitrators where no conciliators, the two appointed | procedure is laid down or agreed conciliators have no role in| — upon for their appointment, the Act appointing the third conciliator. The | _ lays down that the two appointed parties appoint the third conciliator |. arbitrators shall appoint the third who shall act as a presiding | arbitrator who shall act as a presiding conciliator. arbitrator. === ———_—JESTIONS WITH ANSWERS | sy ARBITRATION AND CONCILIATION ACT, 1996 ation is flexible and cto be followed by the hus eventually control n proceedings in sucha i the circumstances of parties may express. bitration ; available for existing ure disputes. rent between the parties | sting or future disputes | 1 is necessary. ration agreement, the dispute must be clearly _ Usually, the parties]] a clause saying that any | sutes arising out of the must be referred to and the parties are bound | . parties do not determine of arbitrators, the act that there shall be sole However, there is no bat naximum number of] provided it isnot an even three arbitrators where m0 is laid down or agreed] heir appointment, the Ad n that the two appoin shall appoint the thi who shall act asa presidi ans 6. The role of the coneiliator isto assist the parties and help them reach at a settlement The conciliator is not allowed to directly resolve the dispute and render a decision, but the parties of the dispute themselves shall achieve an agreement with the help of the conciliator. 7. A party may withdraw at any time from the conciliation proceedings. 8. A conciliator is allowed to discuss issues in dispute, develop options and consider alternatives to help the parties achieve a mutually agreeable outcome. The conciliator can have private sessions with the parties to the dispute. Since no pre agreements are required in conciliation, there is no require- ‘ment need of the same to be in writ- ing. 10. Conciliation is an informal process and normally involves a detailed discussion. 11, Conciliation does not always ensure a mutually agreeable outcome will arise between the patties. 12, The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subject-matter of the conciliation proceedings except that a party may initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for 6. The role of the arbitrator is to go 7. Once the party has submitted the 8 Arbitrators are not permitted to through the pleadings, examine the evidence, hear both the parties, look into the merits of the case and thereafter pass an award. Arbitrator not only assists parties but also makes actively resolves the disputes by making an arbitral award. disputes before an arbitral tribunal, he cannot withdraw from the same, discuss the issues directly with the parties or generate options for terms of settlement or negotiation. The arbitrator cannot have private sessions with the parties to the dispute, The pre agreement for arbitration must be in writing 10. Arbitration is a formal process and can follow similar procedures to court proceedings where witnesses can be called and evidence can be presented to argue the parties’ respective cases. 11. An arbitral award is final and binding and has the effect of terminating the arbitral proceedings. 12. However, conciliation proceedings can be initiated even during the arbitral proceedings preserving his rights. [Section 77]80 103. 104. 105. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWE} Explain in detail Conciliation procedure, Ans, : The procedure for commencement of conciliation is very simple. A. party may, (at‘any time even if the arbitration is pending) make an offer of conciliation other, by an invitation in writing to conciliate under provisions of Part III of the Ac, However, the party making the proposal shall briefly identify the subject of the dispute, If the other party accepts in writing the invitation to conciliate, conciliation proceedings shall be commenced. However, if the other party rejects the invitation, there will be no conciliation proceedings, In case no reply is received within 30 of invitation, the party who makes an offer, may elect to treat this as a rejection the invitation to conciliate and if he so elects, he shall inform in writing the othe party accordingly. It must be noted that any oral acceptance of an offer of conciliation] shall not be considered sufficient under the provision of this Section. How many conciliators can be appointed by the parties? Ans. : Once the invitation to conciliate is accepted by the other. party, the parties shall then agree on the composition of the conciliation tribunal. ie., the number o} conciliators. In absence of any agreement between the parties, there shall be only| one conciliator. However, the maximum number of conciliators shall be three. This section further provides that if the parties opt for more than one coneiliator, a a general rule, all the conciliators shall act jointly. How is conciliator appointed? Ans, : (1) Subject to sub-section (2), — (@) in conciliation proceedings with one conciliator, the parties may agree on the| name of a sole conciliator; (b) in conciliation proceedings with two conciliators, each party may appoint one conciliator; (©) inconciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who| shall act as the presiding conciliator. (2) Parties may enlist the assistance of a suitable institution or person in connectio with the appointment of conciliators, and in particular, — (a) party may request such an institution or person to recommend the names of iduals to act as conciliator; or Ans.QUESTIONS WITH ANSwe {TRATION AND CONCILIATION ACT, 1996 (b) the parties may agree that the appointment of one or more conciliators be made 1 is very simple. A pag directly by such an institution or person: an offer of conciliation ions of Part III of the the subject of the disp coneciliate, conciliatig arty rejects the invitatiog s received within 30 da weat this as a rejection g form in writing the othgl ofan offer of conciliatigg) 496, Write short note on : Role of conciliator. nis Section. Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the advisability of appointing a conciliator ofa nationality other than the nationalities ofthe parties, Coneiliator can be appointed either by parties themselves or may enlist the assistance ofa suitable institution or person. ‘Ans. : Role of conciliator 1, The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute. es? 1¢ other party, the pa bunal. ie., the number 2. The conciliator shall be guided by principles of objectivity, fairness and aties, there shall be on Justice, giving consideration to, among other things, the rights and obligations ators shall be three, of the parties, the usages of the trade concerned and the circumstances thin one'conelllaog surrounding the dispute, including any previous business practices between the parties, The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute, parties may agree on ch party may appoint of 4. The conciliator may, at any stage of the conciliation proceedings, make proposals fora settlement of the dispute. Such proposals need not be in writing, and need not be accompanied by a statement of the reasons therefor. ch party may appoint 2 ‘the third conciliator 107. Write short note on : Settlement Agreement. Ans, : Settlement Agreement n or person in connect 1. When it appears to the conciliator that there exist elements ofa settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations. A fter receiving the observations of the patties, the conciliator may reformulate the terms of a Possible settlement in the light of such observations. recommend the names @108. 109. 110. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWE! 2. If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement, Ifrequested by the parties, the conciliatoy may draw up, or assist the parties in drawing up, the settlement agreement. 3. When the parties sign the settlement agreement, it shall be final and binding the parties and persons claiming under them respectively. 4, The coneiliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties. What is the status and effect of settlement agreement? Ans, : The settlement agreement shall have the same status and effect as if it is arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30. This section declares and confirms that The settlement agreement shall have same status and effect as ifit is an arbitral award on agreed terms on the substance o ‘the dispute rendered by an arbitral tribunal under section 30 of the Act. However, the| award under Section 30 is open to correction, interpretation and additional award| under Section 33 and for setting aside under Section 34 before it obtains the status of) a decree under Section 36. But, the finality of settlement agreement is not abject to Sections 33 and 34 of the Act since the parties voluntary agree inn writing on the settlement agreement, What is meant by confidentiality on conciliation proceedings? ‘Ans. : Notwithstanding anything contained in any other law for the time being in force, the conciliator and the parties shall keep confidential all maters relating to the conciliation proceedings. Confidentiality shall extend also to the settlement] agreement, except where its disclosure is necessary for purposes of implementation and enforcement. j Under what circumstances can a Conciliation proceeding be terminated? Ans, : The conciliation proceedings shall be terminated — | (a)_ by the signing of the settlement agreement by the parties on the date of the agreement; ot (b)_ by awritten declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on th date of the declaration; orE QUESTIONS WITH AN A83 g@rTRATION AND CONCILIATION ACT, 1996 (0) by awritten declaration of the parties addressed to the conciliatorto the effect lispute, they may dray that the conciliation proceedings are terminated, on the date of the declaration; the parties, the conci settlement agreement, or ll be final and binding (@ by awritten declaration of a party to the other party and the coneiliator, if vely. appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration. ‘Apart from the aforesaid four circumstances, 2 conciliation may also be terminated ifthe advance deposits or the supplementary deposits (under Section 79, sub-section ement and furnish a t? us and effect as ifie (1) and (2) Jare not paid in full by both parties within thirty days. In such an event, " snd fe as ititis the conciliator may suspend the proceedings or may make a written declaration of y an arbit termination of the proceedings to the parties, effective on the date of that declaration. .greement shall have , Write short note on : Costs of conciliation under Section 78. terms on the substance, ) of the Act. However, on and additional aw ore it obtains the status, greement is not subject ‘agree inn writing on . ‘Ans, : Costs of conciliation under Section 78 1. Upon termination of the conciliation proceedings, the conciliator shall fix the costs of the conciliation and give written notice thereof to the parties. 2. For the purpose of sub-section (1), “costs” means reasonable costs relating to: (a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the consent of the parties; (b)_ any expert advice requested by the conciliator with the consent of the parties; sedings? (©) any assistance provided pursuant to clause (b) of sub-section (2) of section aw for the time being i 64 and section 68; al all matters relating (@) any other expenses incurred in connection with the conciliation proceedings and the settlement agreement. 3. The costs shall be borne equally by the parties unless the settlement agreement provides for a different apportionment, All other expenses incurred by a party ling be terminated? shall be borne by that party. | 12, Ifthe conciliator is professional advocate and if the conciliation fails, can the arties on the date of the conciliator act as an advocate for either party if the matter is referred to court, ‘Ans. : A person having acted as a conciliator in a particular conciliation proceedings ultation with the parties, shall not at either as an arbitrator or as a representative or counsel of any of the longer justified, on the parties to the disputes in any arbitral or judicial disputes which have been the subject | matter of the conciliation proceedings. However, this prohibition is capable of being | waived by agreement between the parties.Aad 113. 114. What do you mean by Lok Adalats? 115, 116. 417. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS | ye ARBITRATI Can Conciliator be present as witness in Court? ‘Ans. : Section 80 (b) debars a conciliator from being presented by the parties as a ‘witness in any arbitral or judicial proceedings relating to subject matter of conciliation | proceedings conducted. However, this prohibition is also capable of being waived by agreement between the parties. 8. ‘Ans, : Lok Adalat is also known as “People’s Court”, ‘Lok’ stands for people and Adalat’ means Court. Itis the system, which has deep roots in Indian legal history it | is one of the very efficient and important ADR mechanisms and most suited to the Indian environment, culture and societal interests. The ancient concept of settlement of dispute through mediation, negotiation is conceptualised in the form of Lok Adalats. | It is one of the alternative dispute redressal mechanisms, it is a forum where disputes! cases pending in the court of law or at pre-litigation stage are settled/ compromised | amicably. Answer in one or two sentences : What is the objective of Lok Adalat? Ans, : Objective of Lok Adalat is to settle the disputes which are pending before the courts, by negotiations, conciliation and by adopting persuasive common sense and human approach to the problems of the disputants. Why are Lok Adalats constituted? ‘Ans. : The evolution of Lok Adalat was a part of the strategy to relieve heavy burden on the Courts with pending cases and to give relief to the litigants, The first Lok Adalat was held on March 14, 1982 at Junagarh in Gujarat, Maharashtra commenced the LokNyayalaya in 1984, Gradually, the Lok Adalats were built in every State of, India. Presently, Lok Adalats have been given statutory status by The Legal Services - 4 Authorities Act, 1987, Write a short note on : Legal Services Authority Act. 119. Wha s. : The Legal Services Authorities Act, 1987 was enacted to constitute legal der services authorities for providing free and competent legal services to the weaker Sia sections of the society to ensure that opportunities for securing justice were not 1 denied to any citizen by reason of economic or other disabilities and to organize Lok ‘Adalats to ensure that the operation of the legal system promoted justice on a basis 2 of equal opportunity. The system of Lok Adalat, is an innovative mechanism forUESTIONS WITH ANSWERS, nted by the parties as g ct matter of conciliation ;pable of being waived * stands for people and. in Indian legal history it and most suited to the nt concept of settlement, the form of Lok Adalats. 2 forum where disputes) ¢ settled/ compromised 2 of Lok Adalat? 1 are pending before the ive common sense and to relieve heavy burden litigants. The first Lok {aharashtra commenced e built in every State of s by The Legal Services ted to constitute legal | services to the weak curing justice were nd ties and to organize Li moted justice on a basi jovative mechanism fot HE to, [ARBITRATION AND CONCILIATION ACT, 1998 As alternate dispute resolution and has proved effective for resolving the courts. Mention the Features of Lok Adalat. ‘Ans, : Following are Features of Lok Adalat — > Nocourt fee is payable. If any court fee is already paid by a party, the same will be refunded. > _ Itis based on settlement or compromise reached through regular and structured negotiations. > Itis one among the most effective Alternate Dispute Resolution (ADR) systems for weaker sections of the society. > Code of Civil Procedure and Indian Evidence Act are not applicable to the proceedings under Lok Adalat, > Lok Adalat is deemed to be civil court for certain purposes. > Lok Adalat has certain powers of a eivil court > The parties to a dispute can interact directly with the presiding officer, which is not possible in the case of a court proceeding > The award passed by the Lok Adalat is deemed to be a decree of a civil court. > Anaward passed by the Lok Adalat is final and no appeal is maintainable from it. > An award passed by the Lok Adalat can be executed in a court of law. > Theaward can be passed by Lok Adalat, only after obtaining the concurrence of all the parties to di > A Permanent Lok Adalat can pass an award on merits, even without the consent of parties, Such an award is final and binding, From that no appeal is possible. What are the Advantages of Lok Adalat OR What are the benefits of settling disputes by Lok Adalat? Ans, : Advantages of Lok Adalat / Benefits of settling disputes by Lok Adalats 1. Itisavery speedy procedure as the parties submit to Lok Adalats with an intention to arrive at a settlement. 2. Itreduces the burden of Courts and enables the litigants to arrive at a settlement in a cost-effective manner.Ass 120. 121. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWE} 3. _Ttensures that the cordial relations between the parties are maintained since th main thrust is on compromise and not punishment. 4. Strict procedures under the Code of Civil Procedure and the Indian Evid Act are not applicable in cases before Lok Adalats. 5. Despite no strict procedure, the award under the Lok Adalat is deemed to be decree of a civil court. 6. There isno court fee and even if the case is already filed in the regular court, the fee paid will be refunded if the dispute is settled at the Lok Adalat. 7. Disputes can be brought before the Lok Adalat directly instead of going to regular court first and then to the Lok Adalat. 8. The decision of Lok Adalat is binding on the parties and no appeal lies against the order of the Lok Adalat whereas, in courts of law there is always a scope to appeal to the higher forum which cause delay in the settlement of disputes. Answer in one or two sentences : Jurisdiction of Lok Adalat. Ans. : A Lok Adalat shall have jurisdiction to determine and to arrive at a compromise ‘or settlement between the parties to a dispute in respect of - (i) Any case pending before or ii) Any matter which is falling within the jurisdiction of, and is not brought before, any court for which the Lok Adalat is organised. Provided that the Lok Adalat shall have no jurisdiction in respect of any case or ‘matter relating to an offence not compoundable under any law. State the type of cases dealt generally at Lok Adalats. Ans. : Post-litigative cases ~ any case pending before any court for which the Lok Adalat is organised can be referred to Lok Adalat by — (a) Agreement between the parties thereto; or (b) One of the parties thereof makes an application to the court, for referring the case to the Lok Adalat for settlement and if such court is prima facie satisfied that there are chances of such settlement; or (©) By the Court suomoto if the court is satisfied that the matter is an appropriate one to be taken cognizance of by the Lok Adalat. However, no case shall be referred to Lok Adalat by such court except after giving reasonable opportunity of bring heard to the parties.UESTIONS WITH ANS are maintained sineg, and the Indian Evid Adalat is deemed to bg. din the regular court, Lok Adalat, ly instead of going to \d n0 appeal lies agai ere is always a scope ttlement of disputes. Adalat. o arrive ata compromise dis not brought before, respect of any case of Ww burt for which the Lok ourt, for referring the s prima facie satisfied ater is an appropriate ir except after giving. apeiTRATION AND CONCILIATION ACT, 1866, 125. ). What is the nature of award of Lok Adalat? ‘Ans. : Every award of the Lok Adalat shall be deemed to be a decree ot « or, as the case may be, an order of any other court. Where a compromise or settlement has been arrived at, by a Lok Adalat in a reference from a pending case the court-fee paid in such case shall be refunded in the manner provided under the Court Fees Act, 1870 (7 of 1870). . Are the decision arrived at Lok Adalats enforceable? ‘Ans. : Every award made by a Lok Adalat shall be final and binding on all the parties, to the dispute, and no appeal shall lie to any court against the award. ‘An award of Lok Adalat is executable as a decree, For this purpose, it is necessary for Lok Adalats to have uniform procedure, prescribed registers and standardised formats and permanent record of awards to avoid misuse or abuse of the process. What ‘Ans, : Permanent Lok Adalats have been set up as permanent bodies with a Chairman and two members for providing compulsory pre-litigative mechanism for conciliation and settlement of cases relating to Public Utility Services like transport, postal, telegraph etc. Here, even if the parties fail to reach to a settlement, the Permanent Lok Adalat gets jurisdiction to decide the dispute, provided, the dispute does not relate to any offence. Further, the Award of the Permanent Lok Adalat is final and binding on all the parties. The jurisdiction of the Permanent Lok Adalats is upto % Ten Lakhs, Permanent Lok Adalat? Mention the Powers of the Lok Adalat. Ans, : Powers of the Lok Adalat (1) The Lok Adalat shall, for the purposes of holding any determination under this, Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:~ (a) The summoning and enforcing the attendance of any witness and examining him on oath. (b) The discovery and production of any document, (©). The reception of evidence on affidavits.126. MULTIPLE CHOICE QUESTIONS & DESCRIPTIVE QUESTIONS WITH ANSWERS (@)_ The requisitioning of any public record or document or copy of such record or document from any court or office, and (e) Such other matters as may be prescribed. (2) Without prejudice to the generality of the powers contained in sub-section (1), every Lok Adalat shall have the requisite powers to specify its own procedure for the determination of any dispute coming before it. (3) Allproceedings before a Lok Adalat shall be deemed to be judicial proceedings within the meaning of Sections 193, 219 and 228 of the Indian Penal Code (45 of 1860) and every Lok Adalat shall be deemed to be a civil court for the purpose of Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973(2 of 1974), Importance of Lok Adalat in judicial system. Ans. : Lok Adalats are intended to supplement and not to supplant the existing adjudicatory machinery. Lok Adalat lends itselfto easy settlement of money claims; there is scope for other disputes as well. Partition suits damages and matrimonial cases can be easily settled before Lok Adalat as the scope for compromise through ‘an approach of give and take is high in these cases. ‘The Legal Services Authority Act provides statutory backing tothe institution Lok Adalat as well as the awards made by them. Chapter VI — A [introduced by the ‘Amendment Act of 2002] further strengthens the Lok Adalat movement. It provides for pre-ltigation conciliation and settlement of disputes in respect of public utility services like transport services for the carriage of passengers o goods by air, road or water or, postal telegraph or telegraph or telephone service or supply of power, light ‘or water to the public by any establishment or Insurance services and other services as more particulary defined under Section 22 A (b) of the Act. However, disputes in which the value of property exceeds rupees ten aks and matter relating to an offence not compoundable under any law are beyond the scope of Jurisdiction of Lok Adalats Also, The Permanent Lok Adalat shall assist the parties in their attempt to reach an amicable settlement of the dispute in an independent and impartial manner. If the settlement is reached, an award in terms thereof is passed. But if the parties fail to reach an agreement, the Permanent Lok Adalat shall, if the dispute does not relate to any offence, decide the dispute. Thus, an award in such case can be made on merits.