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

The delay of 105 days beyond the prescribed time in applying for setting aside of the Arbitral Award pursuant to an Arbitration Agreement dated 1st November, 2017 is not condonable. 

Explanation: The Arbitration And Conciliation (Amendment) Act, 2021 Amends Section 36 and inserted the provision related to automatic stay on the arbitral award.

THE ARBITRATION AND CONCILIATION (AMENDMENT) BILL, 2021 received Presidential Assent on 11.03.2021. 

There are few limitations while making an arbitral award such as an arbitral award can be inferred with if it is contrary to the substantive provisions of the Act or against the terms of the contract, also an arbitral award can be set aside if the arbitral tribunal has not followed the mandatory procedure prescribed under the Act. An arbitral award can be set aside if it is contrary to fundamental policy of Indian law, or the interest of India, or justice or morality.

The Correct answer is Option 3

Key PointsIf the objections to the award are not sustained (or if there are no objections within the time allowed) the award itself becomes enforceable as if it were a decree of the court.

The delay of 105 days beyond the prescribed time in applying for setting aside of the Arbitral Award pursuant to an Arbitration Agreement dated 1st November, 2017 is not condonable. 

The correct answer is option 1: "Is void and non - actionable."

Key Points

•  An arbitration agreement that provides for an even number of arbitrators is generally not permissible under the Arbitration & Conciliation Act.
• The reason for this is to avoid a deadlock situation where an equal number of arbitrators might result in a tie. This principle ensures that the arbitral tribunal can always reach a decision.
• Therefore, an arbitration agreement that calls for four arbitrators (two appointed by each party) is void and non-actionable, as it does not conform to the standard practice of having an odd number of arbitrators to ensure the possibility of a decisive verdict.

Additional Information

•  Arbitration & Conciliation Act: This Act typically favors an odd number of arbitrators to ensure efficiency and decisiveness in arbitration proceedings.
• In practical terms, arbitration agreements are construed to have a sole arbitrator or three arbitrators. This structure prevents the possibility of a tie in decisions and promotes smoother resolution of disputes.

Mistake Points A common misconception is that parties can agree to any number of arbitrators. However, it's important to ensure that the number is odd to avoid decision-making deadlocks.

Important Points When drafting or entering into an arbitration agreement, parties must pay attention to the number of arbitrators stipulated, ensuring it is an odd number to align with legal standards and practical considerations.

This scenario underlines the importance of adhering to legal norms in arbitration agreements, specifically the requirement for an odd number of arbitrators to prevent deadlock situations.

The delay of 105 days beyond the prescribed time in applying for setting aside of the Arbitral Award pursuant to an Arbitration Agreement dated 1st November, 2017 is not condonable. 

Explanation: The Arbitration And Conciliation (Amendment) Act, 2021 Amends Section 36 and inserted the provision related to automatic stay on the arbitral award.

THE ARBITRATION AND CONCILIATION (AMENDMENT) BILL, 2021 received Presidential Assent on 11.03.2021. 

The correct answer is option 2: "Is not condonable."

Key Points

•  The Arbitration & Conciliation Act stipulates a strict timeline for challenging an arbitral award. The time limit for setting aside an arbitral award is three months, with a possible extension of thirty days on showing sufficient cause. Beyond this period of three months plus thirty days (total of 120 days), the Act does not allow for any further extension.
• Section 5 of the Limitation Act, 1963, which allows for the condonation of delay in certain cases, does not apply to the setting aside of arbitral awards as per the Arbitration & Conciliation Act.
• Therefore, a delay of 105 days beyond the prescribed time (i.e., beyond 120 days) in applying for setting aside an arbitral award is not condonable.

Additional Information

• Limitation Act, 1963: This Act governs the time limits for various legal actions in India. However, its provisions are not applicable in certain specific scenarios, including the timeline for challenging arbitral awards under the Arbitration & Conciliation Act.
• The strict adherence to the timeline in arbitration matters underscores the emphasis on efficiency and finality in arbitration proceedings.

Important Points It is crucial to remember that the timelines prescribed under the Arbitration & Conciliation Act are stringent and are designed to ensure the expeditious resolution of disputes through arbitration.

This question illustrates the strict nature of the time limits under the Arbitration & Conciliation Act for challenging arbitral awards, highlighting that delays beyond the specified period are generally not condonable

There are few limitations while making an arbitral award such as an arbitral award can be inferred with if it is contrary to the substantive provisions of the Act or against the terms of the contract, also an arbitral award can be set aside if the arbitral tribunal has not followed the mandatory procedure prescribed under the Act. An arbitral award can be set aside if it is contrary to fundamental policy of Indian law, or the interest of India, or justice or morality.

The Correct answer is Option 3

Key PointsIf the objections to the award are not sustained (or if there are no objections within the time allowed) the award itself becomes enforceable as if it were a decree of the court.

The correct answer is Option 3

 Key PointsUnder Section 6 of Arbitration act it is written that -In order to facilitate the conduct of the arbitral proceedings, the parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.

The correct answer is Option 4

Key PointsAs per section 2(g) “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;