Arbitration Agreement MCQ Quiz - Objective Question with Answer for Arbitration Agreement - Download Free PDF

The correct answer is 'OPTION 4.'

Key Points

• Section 9 of the Arbitration and Conciliation Act:
  • Section 9 of the Arbitration and Conciliation Act, 1996, allows a party to apply to the Court for interim measures of protection before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced.
  • Interim measures can include orders for the preservation of goods, securing the amount in dispute, or any other necessary measures for protecting the interests of the parties involved in arbitration.
  • This provision is crucial for ensuring that the subject matter of the arbitration is preserved and that the parties’ rights are protected while the arbitration process is ongoing.

Additional Information

• Section 8:
  • Section 8 deals with the power of the judicial authority to refer parties to arbitration when an action is brought before it in a matter which is the subject of an arbitration agreement. It does not concern interim measures.
• Section 7:
  • Section 7 defines what constitutes an arbitration agreement and the requirements for such an agreement. It does not provide for interim measures.
• Section 12:
  • Section 12 addresses the grounds for challenging the appointment of an arbitrator, particularly regarding their independence and impartiality. It is unrelated to interim measures.

The correct answer is option 3

Key Points As per Section 34(3) of the Arbitration and Conciliation Act, 1996, an application for setting aside an arbitral award must be made within three months from:

• The date on which the party receives the arbitral award, OR
• If a request under Section 33 (for correction/interpretation of the award) has been made, then from the date on which that request is disposed of by the arbitral tribunal.
• Additionally, the court may extend this period by a maximum of 30 days if the applicant can show sufficient cause for the delay.

Section 14 says Expeditious disposal of appeals. The Commercial Appellate Court and the Commercial Appellate Division shall endeavour to dispose of appeals filed before it within a period of six months from the date of filing of such appeal.

As per section 10 Where the subject-matter of an arbitration is a commercial dispute of a Specified Value and–– (1) If such arbitration is an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed in a High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (2) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed on the original side of the High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (3) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be filed in, and heard and disposed of by the Commercial Court exercising territorial jurisdiction over such arbitration where such Commercial Court has been constituted.

In Bhatia International v. Bulk Trading S.A., (2002) 4 SCC 105 Supreme Court held that power to grant interim measure under section 9 of the Arbitration and Conciliation Act, 1996 extends to International arbitration as well. 

The correct answer is Option 4

Key PointsAn arbitration agreement must relate to:

(a) Present disputes

(b) Past disputes

(c) Present or future disputes

The correct answer is Option 3

Key PointsBoth forums will have jurisdiction to adjudicate the disputes, if it is not possible for parties to oust the jurisdiction of any forum by agreement.

The correct answer is Option 1

Key PointsA judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists. On allowing of an application under Section 8 of the Arbitration and Conciliation Act, the Suit stands disposed of. 

Section 2, Arbitration means any arbitration whether or not administered by permanent arbitral institution

Arbitration agreement – Section 2(1)(b) of the Act says that for arbitration agreement Section 7 of the Act must be referred.

The correct answer is 'OPTION 4.'

Key Points

• Section 9 of the Arbitration and Conciliation Act:
  • Section 9 of the Arbitration and Conciliation Act, 1996, allows a party to apply to the Court for interim measures of protection before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced.
  • Interim measures can include orders for the preservation of goods, securing the amount in dispute, or any other necessary measures for protecting the interests of the parties involved in arbitration.
  • This provision is crucial for ensuring that the subject matter of the arbitration is preserved and that the parties’ rights are protected while the arbitration process is ongoing.

Additional Information

• Section 8:
  • Section 8 deals with the power of the judicial authority to refer parties to arbitration when an action is brought before it in a matter which is the subject of an arbitration agreement. It does not concern interim measures.
• Section 7:
  • Section 7 defines what constitutes an arbitration agreement and the requirements for such an agreement. It does not provide for interim measures.
• Section 12:
  • Section 12 addresses the grounds for challenging the appointment of an arbitrator, particularly regarding their independence and impartiality. It is unrelated to interim measures.

The correct answer is option 3

Key Points As per Section 34(3) of the Arbitration and Conciliation Act, 1996, an application for setting aside an arbitral award must be made within three months from:

• The date on which the party receives the arbitral award, OR
• If a request under Section 33 (for correction/interpretation of the award) has been made, then from the date on which that request is disposed of by the arbitral tribunal.
• Additionally, the court may extend this period by a maximum of 30 days if the applicant can show sufficient cause for the delay.

Section 14 says Expeditious disposal of appeals. The Commercial Appellate Court and the Commercial Appellate Division shall endeavour to dispose of appeals filed before it within a period of six months from the date of filing of such appeal.

As per section 10 Where the subject-matter of an arbitration is a commercial dispute of a Specified Value and–– (1) If such arbitration is an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed in a High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (2) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that have been filed on the original side of the High Court, shall be heard and disposed of by the Commercial Division where such Commercial Division has been constituted in such High Court. (3) If such arbitration is other than an international commercial arbitration, all applications or appeals arising out of such arbitration under the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) that would ordinarily lie before any principal civil court of original jurisdiction in a district (not being a High Court) shall be filed in, and heard and disposed of by the Commercial Court exercising territorial jurisdiction over such arbitration where such Commercial Court has been constituted.

In Bhatia International v. Bulk Trading S.A., (2002) 4 SCC 105 Supreme Court held that power to grant interim measure under section 9 of the Arbitration and Conciliation Act, 1996 extends to International arbitration as well.