Conduct Of Arbitral Proceedings MCQ Quiz - Objective Question with Answer for Conduct Of Arbitral Proceedings - Download Free PDF

The correct answer is Option 2.

Key Points

• Section 21 of the Act deals with the commencement of arbitral proceedings. The section provides that the arbitral proceedings commence from the date the request to refer the dispute to arbitration has been received by the respondent unless the parties themselves have agreed upon a particular date.
• This means that informing the respondent through a legal notice regarding referring the dispute to arbitration is one of its essential ingredients. This also implies that the process of arbitration is based on the consent of both  parties.

In the case of M/S D.P. Construction v. M/S Vishvaraj Environment Pvt. Ltd. (2021), the court referred to various judicial precedents with respect to Section 21 of the Act and requirement of notice before commencing the procedure and held that:

• The notice which is given under Section 21 of the Act must be clear and reflect the intention of the party to refer a dispute to arbitration by calling and informing the other party and further proceeding with the appointment of arbitrators. 
• Another important thing to note and unless a request is made by one party to a dispute to refer a dispute to arbitration, mere setting out the claims and issues would not be enough and cannot be used to refer a dispute to arbitration. 
• The question of failure does not arise if the parties failed to adhere to the agreed procedure mentioned in the arbitration clause for referring a dispute to arbitration. This only means that the pre-condition for invoking the jurisdiction under Section 11 of the Act is not fulfilled and thus, invokes the jurisdiction of the court to look into the matter. 
• The court also observed that it has been mentioned in various judicial precedents that once a notice is issued according to Section 21 of the Act, there are legal consequences which also include computation of limitation period. 

Additional InformationThe following particular must be mentioned in the notice issued under Section 21 of the Act:

1. Names of both the parties. 
2. Address of parties.
3. Relationship and commercial interactions existing between the parties.
4. Facts of the case.
5. Issues pertaining to the dispute.
6. Responsibilities to be performed by the opposite party.
7. Mention the arbitration clause which was used to refer the dispute to arbitration.
8. Provide a time period within which the opposite party has to send the reply. 
9. In case the arbitral tribunal is to be established, ask the opposite party to nominate arbitrator or arbitrators. 

the correct answer is Option 3

Key Points Section 19: Determination of Rules of Procedure

• Independence from Civil Procedure and Evidence Acts:
• The arbitral tribunal is not bound by the Code of Civil Procedure, 1908, or the Indian Evidence Act, 1872, when conducting its proceedings.
•  Party Agreement on Procedure:
• The parties involved in arbitration are free to mutually agree on the procedure to be followed by the arbitral tribunal during the proceedings, subject to the provisions of this Part.
• Tribunal's Discretion in Absence of Agreement:
• If the parties fail to agree on a procedure, the arbitral tribunal may conduct the proceedings as it deems appropriate, while still adhering to the provisions of this Part.
•  Tribunal's Power:
• The tribunal has the authority under sub-section (3) to determine the procedure for conducting the arbitration, ensuring flexibility and adaptability in the process.
• This simplified version clarifies the tribunal's procedural autonomy and the role of party agreements in the arbitration process.

Between parties the seat of arbitration can be changed by the agreement of parties

Unless otherwise agreed by the parties, arbitration proceedings are deemed to have commenced on the date on which the respondent receives such notice from the claimant

The current position of law appears to be that if seat is mentioned in the contract and the contract has a clause that requires the amendment of the contract to be in writing, then any change in the contract would have to be in writing as per the relevant terms of the contract. In such a situation, the parties would only be able to change the seat of arbitration by following the procedure laid down in the contract.

Unless otherwise agreed by the parties, arbitration proceedings are deemed to have commenced on the date on which the respondent receives such notice from the claimant

The current position of law appears to be that if seat is mentioned in the contract and the contract has a clause that requires the amendment of the contract to be in writing, then any change in the contract would have to be in writing as per the relevant terms of the contract. In such a situation, the parties would only be able to change the seat of arbitration by following the procedure laid down in the contract.

The correct answer is Option 2.

Key Points

• Section 21 of the Act deals with the commencement of arbitral proceedings. The section provides that the arbitral proceedings commence from the date the request to refer the dispute to arbitration has been received by the respondent unless the parties themselves have agreed upon a particular date.
• This means that informing the respondent through a legal notice regarding referring the dispute to arbitration is one of its essential ingredients. This also implies that the process of arbitration is based on the consent of both  parties.

In the case of M/S D.P. Construction v. M/S Vishvaraj Environment Pvt. Ltd. (2021), the court referred to various judicial precedents with respect to Section 21 of the Act and requirement of notice before commencing the procedure and held that:

• The notice which is given under Section 21 of the Act must be clear and reflect the intention of the party to refer a dispute to arbitration by calling and informing the other party and further proceeding with the appointment of arbitrators. 
• Another important thing to note and unless a request is made by one party to a dispute to refer a dispute to arbitration, mere setting out the claims and issues would not be enough and cannot be used to refer a dispute to arbitration. 
• The question of failure does not arise if the parties failed to adhere to the agreed procedure mentioned in the arbitration clause for referring a dispute to arbitration. This only means that the pre-condition for invoking the jurisdiction under Section 11 of the Act is not fulfilled and thus, invokes the jurisdiction of the court to look into the matter. 
• The court also observed that it has been mentioned in various judicial precedents that once a notice is issued according to Section 21 of the Act, there are legal consequences which also include computation of limitation period. 

Additional InformationThe following particular must be mentioned in the notice issued under Section 21 of the Act:

1. Names of both the parties. 
2. Address of parties.
3. Relationship and commercial interactions existing between the parties.
4. Facts of the case.
5. Issues pertaining to the dispute.
6. Responsibilities to be performed by the opposite party.
7. Mention the arbitration clause which was used to refer the dispute to arbitration.
8. Provide a time period within which the opposite party has to send the reply. 
9. In case the arbitral tribunal is to be established, ask the opposite party to nominate arbitrator or arbitrators. 

the correct answer is Option 3

Key Points Section 19: Determination of Rules of Procedure

• Independence from Civil Procedure and Evidence Acts:
• The arbitral tribunal is not bound by the Code of Civil Procedure, 1908, or the Indian Evidence Act, 1872, when conducting its proceedings.
•  Party Agreement on Procedure:
• The parties involved in arbitration are free to mutually agree on the procedure to be followed by the arbitral tribunal during the proceedings, subject to the provisions of this Part.
• Tribunal's Discretion in Absence of Agreement:
• If the parties fail to agree on a procedure, the arbitral tribunal may conduct the proceedings as it deems appropriate, while still adhering to the provisions of this Part.
•  Tribunal's Power:
• The tribunal has the authority under sub-section (3) to determine the procedure for conducting the arbitration, ensuring flexibility and adaptability in the process.
• This simplified version clarifies the tribunal's procedural autonomy and the role of party agreements in the arbitration process.

Unless otherwise agreed by the parties, arbitration proceedings are deemed to have commenced on the date on which the respondent receives such notice from the claimant

The current position of law appears to be that if seat is mentioned in the contract and the contract has a clause that requires the amendment of the contract to be in writing, then any change in the contract would have to be in writing as per the relevant terms of the contract. In such a situation, the parties would only be able to change the seat of arbitration by following the procedure laid down in the contract.

The correct answer is Option 2.

Key Points

• Section 21 of the Act deals with the commencement of arbitral proceedings. The section provides that the arbitral proceedings commence from the date the request to refer the dispute to arbitration has been received by the respondent unless the parties themselves have agreed upon a particular date.
• This means that informing the respondent through a legal notice regarding referring the dispute to arbitration is one of its essential ingredients. This also implies that the process of arbitration is based on the consent of both  parties.

In the case of M/S D.P. Construction v. M/S Vishvaraj Environment Pvt. Ltd. (2021), the court referred to various judicial precedents with respect to Section 21 of the Act and requirement of notice before commencing the procedure and held that:

• The notice which is given under Section 21 of the Act must be clear and reflect the intention of the party to refer a dispute to arbitration by calling and informing the other party and further proceeding with the appointment of arbitrators. 
• Another important thing to note and unless a request is made by one party to a dispute to refer a dispute to arbitration, mere setting out the claims and issues would not be enough and cannot be used to refer a dispute to arbitration. 
• The question of failure does not arise if the parties failed to adhere to the agreed procedure mentioned in the arbitration clause for referring a dispute to arbitration. This only means that the pre-condition for invoking the jurisdiction under Section 11 of the Act is not fulfilled and thus, invokes the jurisdiction of the court to look into the matter. 
• The court also observed that it has been mentioned in various judicial precedents that once a notice is issued according to Section 21 of the Act, there are legal consequences which also include computation of limitation period. 

Additional InformationThe following particular must be mentioned in the notice issued under Section 21 of the Act:

1. Names of both the parties. 
2. Address of parties.
3. Relationship and commercial interactions existing between the parties.
4. Facts of the case.
5. Issues pertaining to the dispute.
6. Responsibilities to be performed by the opposite party.
7. Mention the arbitration clause which was used to refer the dispute to arbitration.
8. Provide a time period within which the opposite party has to send the reply. 
9. In case the arbitral tribunal is to be established, ask the opposite party to nominate arbitrator or arbitrators. 

the correct answer is Option 3

Key Points Section 19: Determination of Rules of Procedure

• Independence from Civil Procedure and Evidence Acts:
• The arbitral tribunal is not bound by the Code of Civil Procedure, 1908, or the Indian Evidence Act, 1872, when conducting its proceedings.
•  Party Agreement on Procedure:
• The parties involved in arbitration are free to mutually agree on the procedure to be followed by the arbitral tribunal during the proceedings, subject to the provisions of this Part.
• Tribunal's Discretion in Absence of Agreement:
• If the parties fail to agree on a procedure, the arbitral tribunal may conduct the proceedings as it deems appropriate, while still adhering to the provisions of this Part.
•  Tribunal's Power:
• The tribunal has the authority under sub-section (3) to determine the procedure for conducting the arbitration, ensuring flexibility and adaptability in the process.
• This simplified version clarifies the tribunal's procedural autonomy and the role of party agreements in the arbitration process.

Between parties the seat of arbitration can be changed by the agreement of parties

A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two percent higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment.