Composition Of Arbitral Tribunal MCQ Quiz - Objective Question with Answer for Composition Of Arbitral Tribunal - Download Free PDF

Last updated on Mar 12, 2025

Latest Composition Of Arbitral Tribunal MCQ Objective Questions

Composition Of Arbitral Tribunal Question 1:

Under the Arbitration and Conciliation Act, 1996, the mandate of arbitral tribunal terminates:

  1. When the arbitrator withdraws from his office
  2. The parties agree to terminate his mandate
  3. Incompetency of arbitrator
  4. All of the above.

Answer (Detailed Solution Below)

Option 4 : All of the above.

Composition Of Arbitral Tribunal Question 1 Detailed Solution

The correct answer is Option 4

Key Points

Section 15: Termination of Mandate and Substitution of Arbitrator
1. Termination of Arbitrator's Mandate:

In addition to the circumstances outlined in Sections 13 and 14, the mandate of an arbitrator will terminate in the following cases:
(a) If the arbitrator voluntarily withdraws from office for any reason.
(b) If the parties mutually agree to terminate the arbitrator's mandate.
2. Appointment of Substitute Arbitrator:

When the mandate of an arbitrator is terminated, a substitute arbitrator must be appointed following the same rules that applied to the appointment of the original arbitrator.
3. Repetition of Hearings:

Unless the parties agree otherwise, if an arbitrator is replaced, any hearings already conducted may be repeated at the discretion of the arbitral tribunal.
4. Validity of Previous Rulings:

Unless otherwise agreed by the parties, any orders or rulings made by the arbitral tribunal before the replacement of an arbitrator will remain valid and are not affected solely due to the change in the tribunal's composition.

Composition Of Arbitral Tribunal Question 2:

Under the Arbitration and Conciliation Act, 1996:

  1. Presiding Arbitrator replaces the Umpire of the old Act
  2. Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person 
  3. Presiding Arbitrator makes award along with panel of arbitrators, while Umpire could make award single-handedly when the appointed arbitrators had failed to arrive at a consensus
  4. All are correct.

Answer (Detailed Solution Below)

Option 4 : All are correct.

Composition Of Arbitral Tribunal Question 2 Detailed Solution

The correct answer is Option 4

Key Points

  • Presiding Arbitrator replaces the Umpire of the old Act:
  • Under the Arbitration and Conciliation Act, 1996, the term "Presiding Arbitrator" replaces the concept of the "Umpire" from the Arbitration Act of 1940. The Presiding Arbitrator is appointed when there is a panel of arbitrators to oversee and coordinate the proceedings, a role previously filled by the Umpire.
  • Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person:
  • The Presiding Arbitrator is one of the arbitrators in the panel and works as part of the tribunal. Under the old Act, the Umpire was a separate entity who only stepped in when the arbitrators failed to reach an agreement. The Umpire acted independently of the tribunal.
  • Presiding Arbitrator makes the award along with the panel of arbitrators, while Umpire could make the award single-handedly when the appointed arbitrators had failed to arrive at a consensus:
  • In the 1996 Act, the Presiding Arbitrator collaborates with the other arbitrators to make a decision or award. Under the previous 1940 Act, if the arbitrators could not reach a unanimous decision, the Umpire could make an award independently, acting alone.

Thus, all the statements are correct, and the answer is Option 4.

Composition Of Arbitral Tribunal Question 3:

Where the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of on the fee payable as per the table set out in Fourth Schedule:

  1. Twenty-five per cent
  2. Thirty per cent
  3. Twenty percent

  4. Fifteen per cent

Answer (Detailed Solution Below)

Option 1 : Twenty-five per cent

Composition Of Arbitral Tribunal Question 3 Detailed Solution

the correct answer is Twenty-five percent 

Key Points

 

Sum in Dispute Model Fees
Upto Rs. 5,00,000 Rs. 45,000
Above Rs. 5,00,000 and upto Rs. 20,00,000 Rs. 45,000 plus 3.5 percent of the claim amount over and above Rs. 5,00,000
Above Rs. 20,00,000 and upto Rs.1,00,00,000 Rs. 97,500 plus 3 percent of the claim amount over and above Rs. 20,00,000
Above Rs. 1,00,00,000 and upto Rs.10,00,00,000 Rs. 3,37,500 plus 1 percent of the claim amount over and above Rs. 1,00,00,000
Above Rs. 10,00,00,000 and upto Rs.20,00,00,000 Rs. 12,37,500 plus 0.75 percent of the claim amount over and above Rs. 10,00,00,000
Above Rs. 20,00,00,000 Rs. 19,87,500 plus 0.5 percent of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00,000

Composition Of Arbitral Tribunal Question 4:

In an arbitration between two parties before an arbitrator appointed by the Chief Justice of the High Court (in exercise of powers under Section 11 of the Arbitration & Conciliation Act, 1996), the rival parties have filed claims against each other. When the arbitration was at an advanced stage, the parties are of the opinion that the arbitrator is, likely to reject the claims/counter-claims of both the parties. The parties jointly inform the arbitrator that they are not willing for arbitration before him and stop appearing before him. The parties thereafter:

  1. Are entitled to appoint another arbitrator and to start arbitration proceedings de novo
  2. Are not entitled to a second round, the same being in contravention of public policy prohibiting forum shopping
  3. Are entitled to appoint another arbitrator but the discretion whether to commence the arbitration proceedings de novo or from the stage where left by the earlier arbitrator is of the Arbitrator and not of the parties
  4. Cannot themselves appoint the second arbitrator and are required to again approach the Chief Justice for appointment of another arbitrator. 

Answer (Detailed Solution Below)

Option 1 : Are entitled to appoint another arbitrator and to start arbitration proceedings de novo

Composition Of Arbitral Tribunal Question 4 Detailed Solution

The parties to an arbitration can agree to any terms and are entitled to appoint another arbitrator and can restart the arbitration proceedings any number of times.

Composition Of Arbitral Tribunal Question 5:

 An application under Section 11 of the Arbitration & Conciliation Act, 1996 can be filed:

  1. Only in the High Court
  2. In the court of appropriate pecuniary jurisdiction dependent upon the subject matter of the dispute i.e. either before the Civil Judge or the District Judge or the High Court
  3. In the court of appropriate pecuniary jurisdiction dependent upon the subject matter of the dispute i.e. either before the Civil Judge or the District Judge or the High Court only if the Chief Justice has delegated his powers under Section 11 to the Civil Judges and the District Judges
  4. Either in the Supreme Court or in the High Court.

Answer (Detailed Solution Below)

Option 4 : Either in the Supreme Court or in the High Court.

Composition Of Arbitral Tribunal Question 5 Detailed Solution

Section 11 of the Arbitration Act provides the same.

Section 11(6) says Where, under an appointment procedure agreed upon by the parties,—

(a) a party fails to act as required under that procedure; or
(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or
(c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure,
a party may request 1[the Supreme Court in case of international commercial arbitration or, by the High Court in the case of other than international commercial arbitration or any person or institution designated by such Court] to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.

Top Composition Of Arbitral Tribunal MCQ Objective Questions

Where the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of on the fee payable as per the table set out in Fourth Schedule:

  1. Twenty-five per cent
  2. Thirty per cent
  3. Twenty percent

  4. Fifteen per cent

Answer (Detailed Solution Below)

Option 1 : Twenty-five per cent

Composition Of Arbitral Tribunal Question 6 Detailed Solution

Download Solution PDF

the correct answer is Twenty-five percent 

Key Points

 

Sum in Dispute Model Fees
Upto Rs. 5,00,000 Rs. 45,000
Above Rs. 5,00,000 and upto Rs. 20,00,000 Rs. 45,000 plus 3.5 percent of the claim amount over and above Rs. 5,00,000
Above Rs. 20,00,000 and upto Rs.1,00,00,000 Rs. 97,500 plus 3 percent of the claim amount over and above Rs. 20,00,000
Above Rs. 1,00,00,000 and upto Rs.10,00,00,000 Rs. 3,37,500 plus 1 percent of the claim amount over and above Rs. 1,00,00,000
Above Rs. 10,00,00,000 and upto Rs.20,00,00,000 Rs. 12,37,500 plus 0.75 percent of the claim amount over and above Rs. 10,00,00,000
Above Rs. 20,00,00,000 Rs. 19,87,500 plus 0.5 percent of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00,000

Under the Arbitration and Conciliation Act, 1996, the mandate of arbitral tribunal terminates:

  1. When the arbitrator withdraws from his office
  2. The parties agree to terminate his mandate
  3. Incompetency of arbitrator
  4. All of the above.

Answer (Detailed Solution Below)

Option 4 : All of the above.

Composition Of Arbitral Tribunal Question 7 Detailed Solution

Download Solution PDF

The correct answer is Option 4

Key Points

Section 15: Termination of Mandate and Substitution of Arbitrator
1. Termination of Arbitrator's Mandate:

In addition to the circumstances outlined in Sections 13 and 14, the mandate of an arbitrator will terminate in the following cases:
(a) If the arbitrator voluntarily withdraws from office for any reason.
(b) If the parties mutually agree to terminate the arbitrator's mandate.
2. Appointment of Substitute Arbitrator:

When the mandate of an arbitrator is terminated, a substitute arbitrator must be appointed following the same rules that applied to the appointment of the original arbitrator.
3. Repetition of Hearings:

Unless the parties agree otherwise, if an arbitrator is replaced, any hearings already conducted may be repeated at the discretion of the arbitral tribunal.
4. Validity of Previous Rulings:

Unless otherwise agreed by the parties, any orders or rulings made by the arbitral tribunal before the replacement of an arbitrator will remain valid and are not affected solely due to the change in the tribunal's composition.

Under the Arbitration and Conciliation Act, 1996:

  1. Presiding Arbitrator replaces the Umpire of the old Act
  2. Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person 
  3. Presiding Arbitrator makes award along with panel of arbitrators, while Umpire could make award single-handedly when the appointed arbitrators had failed to arrive at a consensus
  4. All are correct.

Answer (Detailed Solution Below)

Option 4 : All are correct.

Composition Of Arbitral Tribunal Question 8 Detailed Solution

Download Solution PDF

The correct answer is Option 4

Key Points

  • Presiding Arbitrator replaces the Umpire of the old Act:
  • Under the Arbitration and Conciliation Act, 1996, the term "Presiding Arbitrator" replaces the concept of the "Umpire" from the Arbitration Act of 1940. The Presiding Arbitrator is appointed when there is a panel of arbitrators to oversee and coordinate the proceedings, a role previously filled by the Umpire.
  • Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person:
  • The Presiding Arbitrator is one of the arbitrators in the panel and works as part of the tribunal. Under the old Act, the Umpire was a separate entity who only stepped in when the arbitrators failed to reach an agreement. The Umpire acted independently of the tribunal.
  • Presiding Arbitrator makes the award along with the panel of arbitrators, while Umpire could make the award single-handedly when the appointed arbitrators had failed to arrive at a consensus:
  • In the 1996 Act, the Presiding Arbitrator collaborates with the other arbitrators to make a decision or award. Under the previous 1940 Act, if the arbitrators could not reach a unanimous decision, the Umpire could make an award independently, acting alone.

Thus, all the statements are correct, and the answer is Option 4.

Composition Of Arbitral Tribunal Question 9:

Where the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of on the fee payable as per the table set out in Fourth Schedule:

  1. Twenty-five per cent
  2. Thirty per cent
  3. Twenty percent

  4. Fifteen per cent

Answer (Detailed Solution Below)

Option 1 : Twenty-five per cent

Composition Of Arbitral Tribunal Question 9 Detailed Solution

the correct answer is Twenty-five percent 

Key Points

 

Sum in Dispute Model Fees
Upto Rs. 5,00,000 Rs. 45,000
Above Rs. 5,00,000 and upto Rs. 20,00,000 Rs. 45,000 plus 3.5 percent of the claim amount over and above Rs. 5,00,000
Above Rs. 20,00,000 and upto Rs.1,00,00,000 Rs. 97,500 plus 3 percent of the claim amount over and above Rs. 20,00,000
Above Rs. 1,00,00,000 and upto Rs.10,00,00,000 Rs. 3,37,500 plus 1 percent of the claim amount over and above Rs. 1,00,00,000
Above Rs. 10,00,00,000 and upto Rs.20,00,00,000 Rs. 12,37,500 plus 0.75 percent of the claim amount over and above Rs. 10,00,00,000
Above Rs. 20,00,00,000 Rs. 19,87,500 plus 0.5 percent of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00,000

Composition Of Arbitral Tribunal Question 10:

Under the Arbitration and Conciliation Act, 1996, the mandate of arbitral tribunal terminates:

  1. When the arbitrator withdraws from his office
  2. The parties agree to terminate his mandate
  3. Incompetency of arbitrator
  4. All of the above.

Answer (Detailed Solution Below)

Option 4 : All of the above.

Composition Of Arbitral Tribunal Question 10 Detailed Solution

The correct answer is Option 4

Key Points

Section 15: Termination of Mandate and Substitution of Arbitrator
1. Termination of Arbitrator's Mandate:

In addition to the circumstances outlined in Sections 13 and 14, the mandate of an arbitrator will terminate in the following cases:
(a) If the arbitrator voluntarily withdraws from office for any reason.
(b) If the parties mutually agree to terminate the arbitrator's mandate.
2. Appointment of Substitute Arbitrator:

When the mandate of an arbitrator is terminated, a substitute arbitrator must be appointed following the same rules that applied to the appointment of the original arbitrator.
3. Repetition of Hearings:

Unless the parties agree otherwise, if an arbitrator is replaced, any hearings already conducted may be repeated at the discretion of the arbitral tribunal.
4. Validity of Previous Rulings:

Unless otherwise agreed by the parties, any orders or rulings made by the arbitral tribunal before the replacement of an arbitrator will remain valid and are not affected solely due to the change in the tribunal's composition.

Composition Of Arbitral Tribunal Question 11:

Under the Arbitration and Conciliation Act, 1996:

  1. Presiding Arbitrator replaces the Umpire of the old Act
  2. Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person 
  3. Presiding Arbitrator makes award along with panel of arbitrators, while Umpire could make award single-handedly when the appointed arbitrators had failed to arrive at a consensus
  4. All are correct.

Answer (Detailed Solution Below)

Option 4 : All are correct.

Composition Of Arbitral Tribunal Question 11 Detailed Solution

The correct answer is Option 4

Key Points

  • Presiding Arbitrator replaces the Umpire of the old Act:
  • Under the Arbitration and Conciliation Act, 1996, the term "Presiding Arbitrator" replaces the concept of the "Umpire" from the Arbitration Act of 1940. The Presiding Arbitrator is appointed when there is a panel of arbitrators to oversee and coordinate the proceedings, a role previously filled by the Umpire.
  • Presiding Arbitrator is a part and parcel of the Arbitral Tribunal, while Umpire under the old Act was a third person:
  • The Presiding Arbitrator is one of the arbitrators in the panel and works as part of the tribunal. Under the old Act, the Umpire was a separate entity who only stepped in when the arbitrators failed to reach an agreement. The Umpire acted independently of the tribunal.
  • Presiding Arbitrator makes the award along with the panel of arbitrators, while Umpire could make the award single-handedly when the appointed arbitrators had failed to arrive at a consensus:
  • In the 1996 Act, the Presiding Arbitrator collaborates with the other arbitrators to make a decision or award. Under the previous 1940 Act, if the arbitrators could not reach a unanimous decision, the Umpire could make an award independently, acting alone.

Thus, all the statements are correct, and the answer is Option 4.

Composition Of Arbitral Tribunal Question 12:

In an arbitration between two parties before an arbitrator appointed by the Chief Justice of the High Court (in exercise of powers under Section 11 of the Arbitration & Conciliation Act, 1996), the rival parties have filed claims against each other. When the arbitration was at an advanced stage, the parties are of the opinion that the arbitrator is, likely to reject the claims/counter-claims of both the parties. The parties jointly inform the arbitrator that they are not willing for arbitration before him and stop appearing before him. The parties thereafter:

  1. Are entitled to appoint another arbitrator and to start arbitration proceedings de novo
  2. Are not entitled to a second round, the same being in contravention of public policy prohibiting forum shopping
  3. Are entitled to appoint another arbitrator but the discretion whether to commence the arbitration proceedings de novo or from the stage where left by the earlier arbitrator is of the Arbitrator and not of the parties
  4. Cannot themselves appoint the second arbitrator and are required to again approach the Chief Justice for appointment of another arbitrator. 

Answer (Detailed Solution Below)

Option 1 : Are entitled to appoint another arbitrator and to start arbitration proceedings de novo

Composition Of Arbitral Tribunal Question 12 Detailed Solution

The parties to an arbitration can agree to any terms and are entitled to appoint another arbitrator and can restart the arbitration proceedings any number of times.

Composition Of Arbitral Tribunal Question 13:

 An application under Section 11 of the Arbitration & Conciliation Act, 1996 can be filed:

  1. Only in the High Court
  2. In the court of appropriate pecuniary jurisdiction dependent upon the subject matter of the dispute i.e. either before the Civil Judge or the District Judge or the High Court
  3. In the court of appropriate pecuniary jurisdiction dependent upon the subject matter of the dispute i.e. either before the Civil Judge or the District Judge or the High Court only if the Chief Justice has delegated his powers under Section 11 to the Civil Judges and the District Judges
  4. Either in the Supreme Court or in the High Court.

Answer (Detailed Solution Below)

Option 4 : Either in the Supreme Court or in the High Court.

Composition Of Arbitral Tribunal Question 13 Detailed Solution

Section 11 of the Arbitration Act provides the same.

Section 11(6) says Where, under an appointment procedure agreed upon by the parties,—

(a) a party fails to act as required under that procedure; or
(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or
(c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure,
a party may request 1[the Supreme Court in case of international commercial arbitration or, by the High Court in the case of other than international commercial arbitration or any person or institution designated by such Court] to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.

Composition Of Arbitral Tribunal Question 14:

An arbitration agreement providing for arbitration of four arbitrators is under the Arbitration & Conciliation Act, 1996 to be construed as an agreement for arbitration by:

  1. Sole arbitrator
  2. Five arbitrators 
  3. Three arbitrators
  4. Four arbitrators only.

Answer (Detailed Solution Below)

Option 1 : Sole arbitrator

Composition Of Arbitral Tribunal Question 14 Detailed Solution

The correct answer is Option 1

Key Points

  • Under the Arbitration & Conciliation Act, 1996 in India, an arbitration agreement must adhere to specific rules regarding the number of arbitrators. According to Section 10(1) of the Act, the parties are free to decide the number of arbitrators, but it must be an odd number (e.g., 1, 3, 5, etc.). This requirement is in place to avoid a deadlock in decision-making.
  • If the agreement provides for an even number of arbitrators (such as four in this case) and the parties do not subsequently agree on an odd number, Section 10(2) of the Act comes into play. Section 10(2) states that if the parties do not determine the number of arbitrators or if their determination does not comply with Section 10(1) (i.e., providing an even number), the arbitration will proceed with a sole arbitrator by default.
  • Therefore, an agreement that specifies an invalid even number of arbitrators (like four) is legally interpreted as an arbitration by a sole arbitrator to align with the requirements of the Arbitration & Conciliation Act, 1996.

Composition Of Arbitral Tribunal Question 15:

A nomination of an arbitration is made by a person who is himself ineligible to act as an arbitrator under section 12 (5) read with the seventh schedule to the Arbitration and Conciliation Act, 1996. In such a case 

  1. The nominee cannot act as an arbitrator 
  2. Such a nomination would be void ab initio 
  3. Both (1) and (2) 
  4. Such nomination is valid

Answer (Detailed Solution Below)

Option 3 : Both (1) and (2) 

Composition Of Arbitral Tribunal Question 15 Detailed Solution

Section 12(5) of Arbitration and Conciliation Act - Says that notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator: Provided that parties may, subsequent to disputes having arisen between them, waive the applicability of this sub-section by an express agreement in writing.
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