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

Last updated on Mar 12, 2025

Latest Conduct Of Arbitral Proceedings MCQ Objective Questions

Conduct Of Arbitral Proceedings Question 1:

Unless otherwise agreed by the parties, the arbitral proceedings, in respect of a particular dispute commence on the date: 

  1. When the arbitrator is appointed by the parties
  2. On which a request for that dispute to be referred to arbitration is received by the respondent
  3. When the matter is referred to arbitrator for settlement
  4. When the arbitrator takes notice of the dispute for further proceedings.

Answer (Detailed Solution Below)

Option 2 : On which a request for that dispute to be referred to arbitration is received by the respondent

Conduct Of Arbitral Proceedings Question 1 Detailed Solution

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. 

Conduct Of Arbitral Proceedings Question 2:

As regards the determination of rules of procedure the arbitral tribunal shall not be bound by:

  1. The Indian Evidence Act, 1872 (1 of 1872).
  2. The Code of Civil Procedure, 1908 (5 of 1908)
  3. A or B both
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : A or B both

Conduct Of Arbitral Proceedings Question 2 Detailed Solution

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.

Conduct Of Arbitral Proceedings Question 3:

Parties 'A' and 'B' have agreed on the seat of arbitration. The same 

  1. can be changed by the Arbitral Tribunal unilaterally
  2. cannot be changed at all 
  3. can be changed by the agreement of parties 
  4. cannot be changed by the parties unless Arbitral Tribunal permits

Answer (Detailed Solution Below)

Option 3 : can be changed by the agreement of parties 

Conduct Of Arbitral Proceedings Question 3 Detailed Solution

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

Conduct Of Arbitral Proceedings Question 4:

In the absence of an agreement between the parties, the arbitration proceedings are said to have commenced on:- 

  1. The date on which the first party dispatches a notice of request to the second party for referring the dispute to arbitration
  2. The date on which a request to refer the dispute to arbitration is received by the second party
  3. When one of the parties submits the claim petition before the arbitrator 
  4. None of these

Answer (Detailed Solution Below)

Option 2 : The date on which a request to refer the dispute to arbitration is received by the second party

Conduct Of Arbitral Proceedings Question 4 Detailed Solution

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

Conduct Of Arbitral Proceedings Question 5:

Parties ‘A’ and ‘B’ have agreed on the seat of arbitration. The same 

  1. Can be changed by the Arbitral Tribunal unilaterally 
  2. Cannot be changed to all 
  3. Can be changed by the agreement of parties
  4. Cannot be changed by the parties unless Arbitral Tribunal permits

Answer (Detailed Solution Below)

Option 3 : Can be changed by the agreement of parties

Conduct Of Arbitral Proceedings Question 5 Detailed Solution

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.

Top Conduct Of Arbitral Proceedings MCQ Objective Questions

In the absence of an agreement between the parties, the arbitration proceedings are said to have commenced on:- 

  1. The date on which the first party dispatches a notice of request to the second party for referring the dispute to arbitration
  2. The date on which a request to refer the dispute to arbitration is received by the second party
  3. When one of the parties submits the claim petition before the arbitrator 
  4. None of these

Answer (Detailed Solution Below)

Option 2 : The date on which a request to refer the dispute to arbitration is received by the second party

Conduct Of Arbitral Proceedings Question 6 Detailed Solution

Download Solution PDF
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

Parties ‘A’ and ‘B’ have agreed on the seat of arbitration. The same 

  1. Can be changed by the Arbitral Tribunal unilaterally 
  2. Cannot be changed to all 
  3. Can be changed by the agreement of parties
  4. Cannot be changed by the parties unless Arbitral Tribunal permits

Answer (Detailed Solution Below)

Option 3 : Can be changed by the agreement of parties

Conduct Of Arbitral Proceedings Question 7 Detailed Solution

Download Solution PDF
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, the arbitral proceedings, in respect of a particular dispute commence on the date: 

  1. When the arbitrator is appointed by the parties
  2. On which a request for that dispute to be referred to arbitration is received by the respondent
  3. When the matter is referred to arbitrator for settlement
  4. When the arbitrator takes notice of the dispute for further proceedings.

Answer (Detailed Solution Below)

Option 2 : On which a request for that dispute to be referred to arbitration is received by the respondent

Conduct Of Arbitral Proceedings Question 8 Detailed Solution

Download Solution 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. 

As regards the determination of rules of procedure the arbitral tribunal shall not be bound by:

  1. The Indian Evidence Act, 1872 (1 of 1872).
  2. The Code of Civil Procedure, 1908 (5 of 1908)
  3. A or B both
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : A or B both

Conduct Of Arbitral Proceedings Question 9 Detailed Solution

Download Solution PDF

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.

Conduct Of Arbitral Proceedings Question 10:

In the absence of an agreement between the parties, the arbitration proceedings are said to have commenced on:- 

  1. The date on which the first party dispatches a notice of request to the second party for referring the dispute to arbitration
  2. The date on which a request to refer the dispute to arbitration is received by the second party
  3. When one of the parties submits the claim petition before the arbitrator 
  4. None of these

Answer (Detailed Solution Below)

Option 2 : The date on which a request to refer the dispute to arbitration is received by the second party

Conduct Of Arbitral Proceedings Question 10 Detailed Solution

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

Conduct Of Arbitral Proceedings Question 11:

Parties ‘A’ and ‘B’ have agreed on the seat of arbitration. The same 

  1. Can be changed by the Arbitral Tribunal unilaterally 
  2. Cannot be changed to all 
  3. Can be changed by the agreement of parties
  4. Cannot be changed by the parties unless Arbitral Tribunal permits

Answer (Detailed Solution Below)

Option 3 : Can be changed by the agreement of parties

Conduct Of Arbitral Proceedings Question 11 Detailed Solution

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.

Conduct Of Arbitral Proceedings Question 12:

Unless otherwise agreed by the parties, the arbitral proceedings, in respect of a particular dispute commence on the date: 

  1. When the arbitrator is appointed by the parties
  2. On which a request for that dispute to be referred to arbitration is received by the respondent
  3. When the matter is referred to arbitrator for settlement
  4. When the arbitrator takes notice of the dispute for further proceedings.

Answer (Detailed Solution Below)

Option 2 : On which a request for that dispute to be referred to arbitration is received by the respondent

Conduct Of Arbitral Proceedings Question 12 Detailed Solution

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. 

Conduct Of Arbitral Proceedings Question 13:

As regards the determination of rules of procedure the arbitral tribunal shall not be bound by:

  1. The Indian Evidence Act, 1872 (1 of 1872).
  2. The Code of Civil Procedure, 1908 (5 of 1908)
  3. A or B both
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : A or B both

Conduct Of Arbitral Proceedings Question 13 Detailed Solution

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.

Conduct Of Arbitral Proceedings Question 14:

Parties 'A' and 'B' have agreed on the seat of arbitration. The same 

  1. can be changed by the Arbitral Tribunal unilaterally
  2. cannot be changed at all 
  3. can be changed by the agreement of parties 
  4. cannot be changed by the parties unless Arbitral Tribunal permits

Answer (Detailed Solution Below)

Option 3 : can be changed by the agreement of parties 

Conduct Of Arbitral Proceedings Question 14 Detailed Solution

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

Conduct Of Arbitral Proceedings Question 15:

A sum directed to be paid by an arbitral award shall carry interest 

  1. @ 6% per annum from the date of the award till the date of payment 
  2. @ 12% per annum from the date of the award till the date of payment 
  3. 18% per annum from the date of the award till the date of payment
  4. interest at the rate of two percent higher than the current rate of interest prevalent on the date of award. 

Answer (Detailed Solution Below)

Option 4 : interest at the rate of two percent higher than the current rate of interest prevalent on the date of award. 

Conduct Of Arbitral Proceedings Question 15 Detailed Solution

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.
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