Mumbai University 3 Years LL8- Semester VI (April 2024), Alternate Dispute Resolution (ADR) Questions & Answers. Q1) What is an Alternate Dispute Resolution? Ans) ADR is the collective term of methods such as arbitration, conciliation, fate dispute settlement outside the jal process. The process is mutual and voluntarily, and involves the appointment of a third party who will try and solve the dispute through the selected approach. 2) What is Arbitration? Ans) Arbitration is settlement of a question or dispute (whether of fact, law, or procedure) between parties to a contract by a neutral third party (who is known as the arbitrator), without going through the rigours of the formal court process. Arbitration is a voluntary process, which starts only if all parties to a dispute agree to it. In the Indian context, the scope of the rules for the arbitration process are set out broadly by the provisions of the Arbitration and Conciliation Act 1998. The parties are however free to design an appropriate arbitration process themselves, relevant to their disputes, within this broad framework. The decision of the arbitrator is binding on all parties @3) Define Arbitration Agreement? Ans) As per Section 7(1) of Arbitration & Conciliation Act, 1996, an Arbitration Agreement is typically a clause in a broader contract in which the parties involved agree to settle any dispute that arises out of the contract, out of court, through arbitration. The arbitration agreement mandates, guides, and establishes the arbitration proceedings at the time of dispute. The arbitration process starts when the parties enter into an arbitration agreement. In arbitration, a trained, professional, and neutral arbitrator acts as a judge who will render a decision to end the dispute @Q4) What is foreign award? Ans) A Foreign Award in the context of Alternate Dispute Resolution (ADR) refers to an arbitral award that is made in a country other than the one Scanned with CamScannerAberrate esohition (ADB) where enforcement is sought. Section 44 of Arbitration and Conciliation Act,1996 defines “foreign award" as an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India. The enforcement of foreign arbitral awards is governed by intemational conventions like the New York Convention 1958, or Geneva Convention. The enforcement of these awards is considered one of the main factors in the success of International Commercial Arbitration. However, it's important to note that while a foreign award cannot be disputed, its enforcement can be opposed on the same grounds that are available for a domestic award. This means that while the award itself is final and binding, its enforcement in a particular jurisdiction can be challenged under certain circumstances. Q5) What is consent award? Ans) A Consent Award is a type of arbitral award that reflects the mutually agreed settlement terms of the parties involved in a dispute. Consent Awards are settlement agreements recorded between the parties after they have invoked arbitration to settle disputes. The consent award is non-adjudicatory in nature, meaning it does not involve a decision on the merits of the dispute. In rendering a consent award, the arbitral tribunal does not entertain the dispute on its merits, but only records the settlement agreement of both parties for the purpose of formality. 6) What is Lok Adalat? Ans) A Lok Adalat is a statutory body created under Section 19 of the Legal Services Authorities Act, 1987. It is an alternative dispute resolution mechanism in India, where disputes that are pending in a court of law, or at any pre-litigation stage, can be settled amicably. Lok Adalats have the authority to settle a wide range of civil and criminal cases, except those that are non-compoundable under the law. Q7) What is the date of commencement of Arbitral Proceedings? Ans) The date of commencement of arbitral proceedings is typically the date on which a request for that dispute to be referred to arbitration is received by the respondent. This is unless otherwise agreed by the parties. In other words, a party can commence arbitration by issuing a notice in writing to the other party of its intention to refer the dispute to arbitration. The Scanned with CamScannerAberrate esohtion (ADB) arbitration proceedings are deemed to have commenced on the date on which the respondent receives such notice from the claimant. Q8) What is the Full form of UNICITRAL? Ans) UNICITRAL stands for United Nations Convention on International Trade Law. 9) Who is mediator? Ans) A mediator is a neutral third party who assists two or more parties in resolving a dispute. The mediator's role is to facilitate communication, promote understanding, and help the parties reach a mutually acceptable resolution. Unlike a judge or an arbitrator, a mediator does not make a decision or impose a solution on the dispute. Instead, the mediator helps the parties to create their own solution. Mediation is a method of alternative dispute resolution (ADR) and is an alternative to litigation. Q10) What is Lien of Award? Ans) A Lien of Award refers to the right of an arbitrator to retain the arbitral award until the payment of the fees and expenses due to them is made. This right is similar to a lien in general legal terms, which is a claim or legal right against assets that are typically used as collateral to satisfy a debt. In the context of arbitration, if the parties refuse to pay the arbitrator's fees, the arbitrator may exercise their lien over the award. This means they may refuse to release the final award to the parties until their fees are paid. Q11) Who is presiding Arbitrator? Ans) A Presiding Arbitrator is typically the arbitrator who is appointed by the other arbitrators or designated in the arbitration agreement as the presiding arbitrator or chairman of the arbitral tribunal. The Presiding Arbitrator often plays a crucial role in the arbitration process, including dictating the pace and tone of the arbitration, conducting the hearings, and drafting the award. They are often given considerable discretion in making procedural decisions Q12) Name two statutes dealing with ADR? Ans) Two statutes dealing with Alternative Dispute Resolution (ADR) are: Scanned with CamScannerAlternate esohtion (ADB) i) Arbitration and Conciliation Act, 1996: This Act provides a framework for the arbitration process, including the appointment of arbitrators, the conduct of arbitral proceedings, the making of an arbitral award, and the enforcement of arbitral awards. it) The Legal Services Authority Act, 1987: This Act provides for the constitution of legal services authorities to provide free and competent legal services to the weaker sections of the society to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities. Q13) What are the different mechanisms of ADR? Ans) ADR mechanism of dispute resolution in India, mainly comprise of Arbitration, Mediation, Conciliation and Negotiation. Ql14) In which of the landmark judgement, it was decided by the Supreme Court that Part I and Part IZ of the Arbitration & Conciliation Act 1996, are mutually exclusive of each other? Ans) In the case of Bharat Aluminium Co V Kaiser Aluminium Technical Services Inc, it was decided by the Supreme Court that Part I and Part IT of the 1996 Act, are mutually exclusive of each other. Q15) What is arbitral tribunal? Ans) An Arbitral Tribunal is a panel of unbiased adjudicators which is convened ond sits to resolve a dispute by way of arbitration. An arbitral tribunal can be a sole arbitrator or a panel of arbitrators. The task of an arbitral tribunal is to adjudicate and resolve the dispute and to provide an arbitral award Q16) What is the legal effect of award by Lok Adalat? Ans) Under the Legal Services Authorities Act, 1987, an award (decision) made by a Lok Adalat is deemed to be a decree of a civil court. This means that the award is final and binding on all parties involved, and no appeal against such an award lies before any court of law. However, if the parties are not satisfied with the award of the Lok Adalat, they are free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case, as they retain the right to litigate. Scanned with CamScannerAberrate esohtion (ADB) Q17) What is statement of claim and defense in arbitration Ans) In arbitration, the Statement of Claim and Statement of Defense are crucial documents that outline the respective positions of the parties involved in the dispute > Statement of Claim: This is a document submitted by the claimant that sets out the facts of the case, the legal issues in dispute, and the specific relief or remedy sought from the arbitral tribunal’. It essentially initiates the arbitration proceedings and lays down the foundation for the claimant's case. > Statement of Defense: In response to the Statement of Claim, the respondent submits the Statement of Defense. This document addresses the points raised in the Statement of Claim and presents the respondent's counterarguments’. It includes the respondent's version of the facts, any legal defenses, and may also contain counterclaims against the claimant. Both documents must be comprehensive and include all relevant facts, legal arguments, and evidence that the parties wish to rely on during the arbitration proceedings. They form the basis for the subsequent hearings and the final award of the arbitral tribunal. Q18) What is de jure and de facto impossibility to act for an arbitrator? Ans) The arbitrator becomes de jure unable to perform his functions, if he does not remain independent and impartial, or if he does not possess adequate qualification as agreed between the parties to arbitration agreement; The arbitrator is said to be de facto unable to perform his function if he has become ill or insane or any other cause likely to affect his function as an arbitrator. Q19) What is institutional Arbitration? Ans) Institutional arbitration refers to the process of resolving disputes under the backings of an established arbitral institution, according to its set rules and procedures. These institutions provide a framework for the arbitration process, including the appointment of arbitrators, case management services, and administrative support. The main features of institutional arbitration are: > Arbitral Institutions: These are permanent organizations that offer a set of arbitration rales and oversee various aspects of the arbitration process, such as constituting the arbitral tribunal and handling administrative and financial matters Scanned with CamScannerAberrate esohtion (AD8) v Rules and Procedures: Institutional arbitration is conducted pursuant to the rules of the institution, which provide a structured process and often include standard rules to cover various procedural aspects. Administrative Support: The institution typically assists with the practical aspects of conducting an arbitration, such as arranging venues for hearings and managing the financial aspects of the process. > Certainty and Efficiency: One of the main advantages of institutional arbitration is the higher degree of certainty and efficiency in procedural matters, compared to ad hoc arbitration, which is conducted without the support of an ition. > Institutions like the International Chamber of Commerce (ICC), the London Court of International Arbitration (LCIA), and the Singapore International Arbitration Centre (SIAC) are examples of prominent arbitral institutions that facilitate institutional arbitrations globally. vy 20) is arbitration discharged by death of either party? Ans) No, arbitration is not discharged by the death of either party. According to Section 40 of the Arbitration and Conciliation Act, 1996, an arbitration agreement shall not be terminated by the death of any party involved. It remains enforceable by or against the legal representatives of the deceased. This means that the arbitration process can continue with the legal heirs or representatives of the deceased party taking their place in the proceedings. The mandate of an arbitrator is also not terminated by the death of the party who appointed them. However, it's important to note that this does not affect any law that extinguishes a right of action by the death of a person. Q21) What is the date of commencement of arbitral proceedings? Ans) The date of commencement of arbitral proceedings is a crucial) aspect in arbitration. According to Section 21 of the Arbitration and Conciliation Act, 1996, the arbitral proceedings are deemed to commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. This request is typically made through a notice in writing from the claimant to the respondent, indicating the intention to refer the dispute to arbitration. It's important to note that the commencement date is significant because it often determines the applicability of certain rules and laws, and it may also affect the calculation of limitation periods for the claims made in the 6 Scanned with CamScannerAberrate esohtion (ADR) arbitration. The parties may agree on a different date for the commencement of proceedings, but unless such an agreement is made, the default position under the law is as stated above. Scanned with CamScannerAberrate esohtion (ADB) Descriptive Questions/ Short Notes Ql) State any three reasons for emergence of Alternate Dispute Resolution (ADR)? Ans) The reasons for emergence of ADR are: > High Cost of Litigation: The cost of litigation consist of court fees, fees paid for summons and other processes, advocates fees etc. The costly nature of litigation compels parties to abandon claims and defences in court of law and look for alternate dispute resolution mechanism. Efficiency and Speed: ADR provides a faster method to resolve disputes compared to traditional court proceedings. The number of cases pending in courts and the lengthy time taken to resolve disputes have contributed to the development of ADR. > Confidentiality and Control: Parties often prefer ADR because it offers greater confidentiality than court proceedings. It also allows parties to have more control over the selection of the individual or individuals who will decide their dispute. Furthermore, companies that do not want to make their disputes public, which could potentially harm their reputation, support alternative ways to resolve disputes privately. v Q2) Discuss the features of Arbitration and Conciliation Act 1996. Ans) The Arbitration and Conciliation Act, 1996 aims in facilitating quick resolution of commercial disputes. Some of the salient features of the Act are as follows: i) Comprehensive Framework: The Act provides a comprehensive framework for domestic arbitration, international commercial arbitration, and enforcement of foreign arbitral awards. It is considered a self- contained code, which means it is the complete and exclusive set of rules for matters it covers. i!) Based on UN Model Law: The Act is based on the UN Model Law on International Commercial Arbitration, which was recommended by the United Nations Commission on International Trade Law (UNCITRAL). This alignment with international standards helps facilitate international trade and commerce. iti) Consolidation of Laws: It consolidates and amends the law relating to arbitration contained Previous enactments, such as the Arbitration Act of 1940 and the Foreign Awards (Recognition and Enforcement) Act of 1961. Scanned with CamScannerAlternate esobtion (ADB) iv) Autonomy of Arbitral Process: The Act minimizes the supervisory role of courts in the arbitral process, granting more autonomy to the arbitral tribunals. This is intended to make the arbitration process less formal, more flexible, and faster. v) Enforcement of Awards: It ensures that every final arbitral award is enforced in the same manner as if it were a decree of the court. This feature underscores the binding nature of arbitra! awards. vi) Conciliation Proceedings: The Act also defines the law relating to conciliation and provides that a settlement agreement reached by the parties as a result of conciliation proceedings will have the same status and effect as an arbitral award. vil) Procedural Efficiency: The Act aims to provide an arbitral procedure that is fair, efficient, and capable of meeting the needs of specific arbitrations. It also allows the arbitral tribuna! to use mediation, conciliation, or other procedures during the arbitral proceedings to encourage settlement of disputes. Qualifications for Arbitrators: The Act prescribes qualifications for arbitrators, ensuring that the individuals who arbitrate disputes have the necessary expertise and integrity These features make the Arbitration and Conciliation Act, 1996 a pivotal tool for resolving disputes outside the traditional court system, thereby reducing the burden on courts and providing a more efficient mechanism for dispute resolution. 3) What are the essential elements of arbitration agreement? Ans) The essential elements of an arbitration agreement crucial for its validity and effectiveness are as under: a) Presence of a Dispute: There must be a genuine dispute between the parties for the arbitration agreement to be applicable b) Written Agreement: The agreement must be documented in writing. ¢) Intention of the Parties: The parties involved must have a clear intention to resolve disputes through arbitration. 4) Signatures of the Parties: All parties must sign the agreement, indicating their consent and understanding. e) Contract: Since Arbitration Agreement is a valid contract, it should fulfil all the essential ingredients of valid contract as per Indian Contract Act 1872. Additionally, the agreement may specify: f) Seat of Arbitration: The location where the arbitration is to be held. 3 Scanned with CamScannerAlternate Dispute Resohition (ADB) 9) Procedure for Appointing Arbitrators: How arbitrators wil be chosen. h) Language: The language in which the arbitration will be conducted. i) Number and Qualifications of Arbitrators: Details about the arbitrators, including their number and qualifications 5) Type of Arbitration: The form of arbitration to be used. k) Governing Law: The legal framework governing the arbitration process. These above elements ensure that the arbitration process is agreed apon by all parties and that it serves as a fair and efficient alternative to traditional court litigation. Q4) Write the provisions of Section 26 regarding power of arbitral tribunal for appointment of expert? Ans) Under the Arbitration and Conciliation Act, 1996, an expert in arbitration typically refers to a professional with specialized knowledge relevant to the dispute, who may be appointed to assist the arbitral tri The Act allows far the involvement of subject matter experts by the disputing parties or the tribunal self. The tribunal has the discretion to appoint experts unless the parties agree otherwise. Experts can provide opinions on technical, scientific, or financial matters that are beyond the general knowledge of the arbitrators. Their role is to support the tribunal in understanding the nuances of the subject matter of the dispute, which can be crucial for the resolution of complex issues. Section 26 empowers the arbitral tribunal to appoint experts to report to it on specific issues to be determined by the tribunal > Section 26(1): This subsection allows the arbitral tribunal to appoint one or more experts to report on specific issues, unless the parties have agreed otherwise. The experts are tasked with reporting to the tribunal on particular aspects that require specialized knowledge. Section 26(1)0): It specifies that the tribunal may appoint experts to report on specific issues that the tribunal determines. Section 26(1)(b): This clause requires a party to provide the expert with any relevant information or to produce, or provide access to, any relevant documents, goods, or other property for inspection. Section 26(2): Unless the parties have agreed otherwise, if a party requests or the tribunal considers it necessary, the expert must participate in an oral hearing after delivering their report. During this hearing, the parties have the opportunity to ask questions to the expert and to present their own expert witnesses to testify on the points at issue. nal. v v v 10 Scanned with CamScannerAlternate esohtion (ADB) v Section 26(3): This subsection states that, unless the parties have agreed otherwise, the expert must make available to the party requesting it all documents, goods, or other property in the expert's possession that were provided to prepare the report. This section ensures that the arbitral tribunal has the necessary tools and procedures to effectively utilize expert knowledge in the arbitration process. 5) Write a note on role/duties of conciliator? Ans) As per part 3 of the Arbitration & Conciliation Act, 1996/2015, Conciliation is a process by which settlement of disputes is encouraged through a process of continuous discussion, facilitated by the conciliator. (Sec. 61). In other words, Conciliation is a voluntary and confidential method of alternative dispute resolution (ADR), where the conciliator facilitates communication, encourages negotiation, and helps the parties reach a mutually acceptable settlement. A conciliator is a neutral third party appointed to assist parties in resolving their disputes through the process of conciliation. The main roles and responsi fies of a conciliator: i) Assisting Parties in Reaching an Amicable Settlement: The primary role of a conciliator, as stated in Section 67, is to assist the parties in reaching a mutually acceptable resolution to their dispute. This involves facilitating communication, encouraging dialogue, and exploring possible solutions. is quided by principles of objectivity, fairness, and justice. They maintain a neutral position within a meeting to ensure both parties receive fair considerations. iti) Conducting the Conciliation Proceedings Appropriately: The conciliator is responsible for conducting the conciliation proceedings appropriately. They hold meetings with each individual party to discuss how the meeting will go and review relevant documents and information to help reach conclusions. iv) Making Proposals for Settlement: Unlike a mediator, who typically focuses ‘on guiding the parties towards a mutually agreeable solution, a conciliator may actively propose settlement options or suggestions for resolving the 2 Confidentiality is an essential aspect of conciliation. The discussions and information shared during the conciliation process are usually protected by confidentiality provisions, allowing parties to speak openly without fear of their statements being used against them in any subsequent legal proceedings. 1 Scanned with CamScannerAberrate esohtion (ADB) Thus, the role of a conciliator is crucial in assisting parties to resolve their disputes amicably and avoid lengthy and costly litigation. They play a significant role in alternative dispute resolution by facilitating communication, encouraging negotiation, and helping the parties reach a mutually acceptable settlement. Q6) What are three advantages of Conciliation? Ans) Conciliation under the Arbitration Act offers several advantages: i) Flexibility: Conciliation is a flexible process that can be tailored to the needs of the parties involved. It can be used for a wide variety of disputes, both small and large. ii) Preservation of Relationships: As the parties are directly engaged in ing a settlement, conciliation enhances the likelihood of the parties continuing their amicable business relationship during and after the proceedings. iii) Confidentiality: The conciliation process is committed to maintaining confidentiality throughout the proceedings and thereafter. This includes the dispute, the information exchanged, the offers and counter-offers made, and the settlement arrived at. These advantages make conciliation an attractive alternative to traditional court proceedings. Q7)_ Explain in detail Conciliation procedure. Ans) The procedure for commencement of conciliation is very simple. A party may, (at any time even if the arbitration is pending) make an offer of conciliation to other, by an invitation in writing to conciliate under provisions of Part III of the Act. However, the party making the proposal shal! briefly identify the subject of the dispute. If the other party accepts in writing the invitation to conciliate, concikiation proceedings shall be commenced. However, if the other party rejects the invitation, there will be no conciliation proceedings. In case no reply is received within 30 days of invitation, the party who makes an offer, may elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing the other party accordingly. It must be noted that any oral acceptance of an offer of tion shall not be considered sufficient under the provision of the Act. Q8) Write a note on appointment of Conciliator? 2 Scanned with CamScannerAlternate Dispute Resohtion (ADB) Ans) The process of conciliation is a voluntary, flexible, and confidential form of alternative dispute resolution, where the conciliator plays a crucial role in facilitating communication and negotiation between the parties to achieve a mutually acceptable solution. The provisions of the Arbitration and Conci Act, 1996 ensure that the appointment of conciliators is a fair and transparent process, allowing for an effective ond efficient resolution of disputes outside the formal court system. The appointment of a conciliator under the Arbitration and Conciliation Act, 1996 in India is provided in Section 64 of the Act. Appointment of Conciliator: ¢) Number of Conciliators: The Act allows the parties to appoint one or more conciliators. Typically, there should be an odd number of conciliators to avoid a deadlock in decision-making Appointment by Agreement: In a conciliation proceeding with one conciliator, the parties may agree on the name of a sole conciliator. If there are two conciliators, each party appoints one conciliator. In the case of three conciliators, each party appoints one, and the parties jointly agree on the third conciliator, who acts as the presiding conciliator. ©) Enlisting Assistance: If the parties cannot agree on a conciliator(s}, they may enlist the assistance of an institution or person, such as the court or titution, to help appoint the conciliator. 8) > The conciliator assists the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute > The conciliator does not decide the dispute but facilitates the parties’ own efforts to resolve the conflict. Qualifications and Independence: > A conciliator is typically someone with expertise and experience in dispute resolution, negotiation, and conflict management. > The conciliator must be independent and impartial, and not have any interest in the outcome of the dispute. Q9) Distinguish between Arbitration and Conciliation? Ans) Meaning: Arbitration is a dispute settlement process in which an impartial third party, known as an arbitrator, is appointed to study the dispute, hear both parties, and arrive at a decision that is binding on both parties. On the other hand, Conciliation is a method of resolving disputes, wherein an 2 Scanned with CamScannerAberrate esohtion (ADB) independent person, known as a conciiator, helps the parties to arrive at a negotiated settlement. Enforcement: An arbitrator's decision is usually final and legally binding, similar to a court judgment. However, a conciliator does not have the power to enforce their decision. Legal Proceedings: Arbitration often follows specific legal procedures and rules, and the arbitrator's role is similar to that of a judge. In contrast, conciliation focuses on finding a compromise that satisfies all parties. Prior Agreement: Arbitration requires a prior agreement between the parties to resolve disputes through arbitration. However, such a prior agreement is not required for conciliation. Availability: Arbitration is available for both existing and future disputes. In contrast, conciliation is typically used for existing disputes. Q10) State any three grounds to challenge the Arbitral Award? Ans) Some of the grounds on which an arbitral award can be challenged: i) Incapacity of Parties: If the parties to the agreement were under some incapacity at the time of entering into the agreement, the arbitral award can be challenged. it) Void Agreement: If the arbitration agreement is void, enforceable by law, the arbitral award can be challenged. ili) Beyond the Scope of Arbitration Agreement: If the award contains decisions on matters that are beyond the scope of the arbitration agreement, it can be challenged. iv) Absence of Proper Notice: If there was an absence of proper notice of the appointment of an arbitrator or of arbitral proceedings, the arbitral award can be challenged ¥) Violation of Natural Justice: If a party was unable to present his case or if there was a violation of nature! justice, the arbitral award can be challenged. The specific grounds for challenging an arbitral award may vary depending on the jurisdiction and the specific arbitration agreement. it is not Q11) What is fast track arbitration? Ans) Fast Track Arbitration is an expedited arbitration procedure designed to yield a final award in a short period of time. It was introduced in India 14 Scanned with CamScannerAberrate esohtion (ADB) by the Arbitration and Conciliation Amendment Act 2015, to expedite the process of arbitration. Here are some key features of Fast Track Arbitration: i) Time Limit: The proceedings are governed by strict time limit policies and are expected to end within 6 months. If the time limit is not followed, the mandate of the arbitrator may terminate. ii) Sole Arbitrator: Unlike regular arbitration which often involves a panel of three arbitrators, Fast Track Arbitration typically involves a sole arbitrator appointed by the parties. Written Submissions: Fast Track Arbitration primarily relies on written submissions and there is usually no provision for oral proceedings. iv) Cost and Time Effective: Since speed and cost are vital elements in commercial dispute resolution, Fast Track Arbitration has evolved into a speedy and efficient settlement of disputes. Q12) Whether limitation act is applicable to Arbitration Proceedings? Ans) Yes, the Limitation Act is applicable to arbitration proceedings. Section 43 (1) of the Arbitration and Conciliation Act, 1996 states that “the Limitation Act, 1963, shall apply to arbitrations as it applies te proceedings in court”. The Limitation Act is a statute in the civil law system, which prescribes a maximum period, after the happening of an event (often called the cause of action), in which legal action can be commenced. Therefore, an action cannot be initiated by a party if the prescribed time has passed after the accrual of the cause of action on the basis of which the action is to be initiated. The Act provides for the extension of the prescribed period in certain cases such as legal disability, sufficient cause, and acknowledgement of debt. Acknowledgement of debt plays a significant role in extending the limitation period under the Limitation Act, 1963. Section 18 of the Limitation Act provides that where, before the expiry of the prescribed period of limitation, an acknowledgement of liability is made in writing and signed by the debtor, a fresh period of limitation starts from the time when such acknowledgement was signed. QI13) Short note on arbitral tribunal? Ans) An Arbitral Tribunal is a panel of unbiased adjudicators which is convened and sits to resolve a dispute by way of arbitration. An arbitral tribunal can be a sole arbitrator or a panel of arbitrators. The task of an arbitral tribunal is to adjudicate and resolve the dispute and to provide an 15 Scanned with CamScannerAbernate esohtion (ADB) arbitral award. The parties to agree on arbitration are usually free to determine the number and composition of the arbitral tribunal. The powers of an arbitrator in India include the power to administer an oath to the parties and witnesses, take interim measures, proceed ex-parte, appoint an expert, and make awards. Q14) Write a note on Non Speaking Award? Ans) A non-speaking award is an arbitral award where the arbitrator does not provide the reasons for the decision. The Supreme Court of India has observed that in a non-speaking award, it is not open for the court to probe the mental process of the arbitrator and speculate, where no reasons have been given by the arbitrator for arriving at a certain conclusion. An arbitral award is not ordinarily liable to be challenged on the ground that it is erroneous. The award of the arbitrator is final and conclusive unless it is contrary to the terms of the contract. However, a non-speaking award can be set aside if the arbitrator has exceeded his jurisdiction. Q15) Discuss as to what interim reliefs can be granted by court in arbitration proceedings ? Ans) Section 9 of the Arbitration and Conciliation Act, 1996 lays down as under: ‘A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court - (i) for the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings: or (ii) for an interim measure of protection in respect of any of the following matters, namely :- () the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement; (b) securing the amount in dispute in the arbitration: (©) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes ary person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence; (@) interim injunction or the appointment of a receiver: 16 Scanned with CamScannerAberrate esohtion (AD8) (©) such other interim measure of protection as may appear to the court to be just and convenient, The Court under the above circumstances shall have the same power for making orders as it has been the purpose of, and in relation to, any proceedings before it. Case Laws: Sundaram Finance Ltd. v. NEPC India Ltd., ATR 1999 SC 565 has observed that initiation of arbitration proceedings would not be pre-condition for filling petition under section 9 of the Act. What is important is manifest intention to have the dispute referred to an arbitral Tribunal i. a situation may so demand that party may choose to apply under section 9 for an interim measures even before issuing a notice contemplated by Section 21 of the said Act. While passing order under section 9 and in order to ensure that effective steps are taken to commence the arbitral proceedings, the Court while exercising jurisdiction under section 9 can pass a conditional order to put the applicant to such terms as it may deem fit with a view to see that effective steps are taken for commencing arbitral proceedings Q16) Short note on Termination of Arbitration Proceedings? Ans) Section 32 provides that the arbitration proceedings shall stand terminated in the following cases: 4) On making of final award: The expression final award means an award which is effective, adjudication complete on all matters referred to arbitration. Once the final award is made, the arbitration proceedings come to an end and are terminated. b) By order of arbitral tribunal: Under certain circumstances, the arbitral tribunal may order termination of arbitration proceedings. The circumstances under which the arbitral tribunal can order termination of the proceeding without making a final award are: i) Where the claimant withdraws his claim: When the claimant withdraws his claim, the arbitral tribunal shall order termination of proceedings. However, the termination will not be ordered if the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute. When the arbitral tribunal recognises such legitimate interest, then it may, instead of ordering termination, proceed with the arbitration and make an award ii) Where the parties agree on the termination of the proceedings: The arbitral tribunal shall issue an order of termination of proceedings when ” Scanned with CamScannerAberrate esobtion (ADB) the parties agree on the termination of the proceedings. Such agreement of the parties tantamount to cancelling particular reference but the parties would be free to make another reference on the same subject matter by reconstituting another tribunal ) When the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible: The proceedings would become unnecessary if the purpose of arbitration is lost. Impossibility would arise from circumstances such as act of god, terrorist attack or such force majeure situations. It might also arise when both parties do not contribute to the proceedings and if the claimant fails to file its statement of claim. In any case it is the arbitral tribunal's discretion. He can order termination if satisfied that the proceedings have either become annecessary or impossible Q17) Short note on Jurisdiction of Arbitral Tribunal? Ans) The provisions relating to Jurisdiction are given in Section 16 of Arbitration Act. @) The jarisdiction of an arbitral tribunal is primarily determined by the Parties’ agreement to submit their disputes to arbitration. This means that the tribunal's authority to hear a case is not inherent but is granted by the parties involved. b) In many legal systems, including India's, the Arbitration and Conciliation Act of 1996 allows the arbitral tribunal to rule on its own jurisdiction. This is known as the “competence-competence” principle. ¢) The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose - (an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of contract: and (ii) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause. d) A plea that the arbitral tribunal does not have jurisdiction shail be raised not later than the submission of the statement of defence: however, a party shall not be precluded from raising such a plea merely because that he has appointed, or participated in the appointment of, an arbitrator e) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope its authority is raised during the arbitral proceedings. 18 Scanned with CamScannerAberrate esohtion (408) f) The arbitral tribunal may, in either of the cases referred to in para (c) and (4) above, admit a later plea if it considers the delay justified. 9) The arbitral tribunal shall decide on plea referred to in in para (c) and (d) above, and where the arbitral tribunal takes a decision rejecting the plea, continuing with the arbitral proceedings and make an arbitral award. h) Generally, there is no appeal against the tribunal's decision on jurisdiction related to the merits of the award Case Study: In Konkan Railway Corp. Ltd. v. Rani Construct (P) Ltd., AIR 2002 SCW 426 Supreme Court has held that Section 16 enables the arbitral! tribunal to rule on its own jurisdiction. Arbitral Tribunal can rule on any objection with respect to existence or validity of the arbitration agreement and Arbitral tribunal's authority under section 16 is not confined to the width of jurisdiction but goes also to the root of its jurisdiction. Q18) Short note on Rules applicable to substance of Dispute? Ans) Section 28 of the Arbitration and Conciliation Act,1996 provides rules which are applicable to the substance of disputes. It specifies the law or the rules of law according to which the arbitral tribunal shall decide the dispute submitted for arbitration. v Section 28(1): In case the place of arbitration is India, Section 28(1) clause (a) of the Arbitration and Conciliation Act,1996 provides that the arbitral tribunal is to decide the dispute submitted in arbitration according to the substantive law for the time being in force in India. Substantive law implies the set of laws that define the rights and responsibilities in civil law, crimes and punishment in criminal law. Section 28(1)(b): In the case of international commercial arbitration, the tribunal shal! decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute. Section 28(1)(b)(i:): If the parties have designated the law or legal system of a given country, it is construed as referring directly to the substantive law of that country and not to its conflict of laws rules, unless otherwise expressed. Section 28(1)(b)(ii): If the parties have not designated any law, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute. These provisions ensure that the arbitral tribuna! applies the correct substantive laws to the dispute, reflecting the parties’ agreement or, in the absence of such 19 y y v Scanned with CamScannerAberrate esobtion (ADB) agreement, the laws that the tribunal deems appropriate. This framework supports the autonomy of the parties in arbitration and the flexibility of the arbitral process. > The Act lays down for the Arbitral tribunal to decide according to the terms of contract and usages of the trade which are applicable to the transaction. > Section 28(2): The arbitral tribunal can decide ex aequo et bono (according to what is fair and good) or as amiable compositeur (according to principles of equity), only if the parties have expressly authorized it to do so. In the usual course of the process, the rules, which the parties to the dispute designate, are applicable to the substance of the dispute, the parties may also empower the arbitral tribunal to decide the cases in their good conscience without adhering to any strict laws or rules of law. The ambit of the specification of rules which may be applicable to the substance of disputes is very wide to the fact that the legislation uses the words law or rules of law which include transnationa? laws or rules of international conventions, etc.Prior to the 2015 amendment, the powers of the tribunal to apply its own discretion were very limited and it had to strictly abide by the ambit that the contract and usage of trade set for the parties. This made it difficult to render justice as one of the parties was usually able to exploit the situation and make the other party sign such terms which went against the basic nature of opportunity or equal bargain power of both the parties. Section 28(3): While deciding and making an award, the arbitral tribunal must take into account the terms of the contract and trade usages applicable to the transaction. v In case of international arbitration 0) Where parties have designated the rules of law In case of international arbitration, Section 28 states that the arbitral tribunal shall decide the dispute according to the rules of law that the parties have designated as applicable to the substance of the dispute. Due to the use of the term ‘rules of law’, the ambit of the law has been widened considerably. The porties ore not restricted to the national substantive laws: they may also choose transnational laws, international law principles, or the rules of international law conventions. Most commonly used rules are “lex mercatoria’, which incorporates international commercial rules and general principles of law and is not based upon a specific legal system: or the principles of the international commercial 20 Scanned with CamScannerAberrate esohtion (ADB) contract drawn up by UNCITRAL. The parties may also split the law applicable to the substance to several issues, or empower the tribunal to render a decision based on reasonableness and fairness. Where parties have not designated the rules of law Party autonomy is a fundamental principle in international arbitration. An aspect of this principle is that the parties are free to choose the laws or rules of law which are applicable to the substance of the dispute. However, in case the parties do not expressly state which law governs to the substance of the dispute, the tribunal has the authority to apply the rules of law it considers appropriate given the circumstances. The tribunal has the power to deviate from any strict laws or rules of law and decide on the basis of its own good faith only in cases where the parties expressly authorise it to do so Q19) What is the ground to challenge the appointment of Arbitrator? Discuss Procedure also. Ans) Section 12 of the Arbitration and Conciliation Act provides :- "(1) When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose in writing any circumstances likely to give rise to justifiable doubts as to his independence or impartiality. (2) An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall, without delay, disclose to the parties in writing any circumstances referred to in sub-section (1) as mentioned above unless they have already been informed of them by him. (3) An arbitrator may be challenged only if - (0) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or (6) he does not possess the qualifications agreed to by the parties (4) A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made." In Jiwan Kumar Lohia v. Durga Dutt Lohia (ATR 1992 SC 188), the Supreme Court said that "Reasonable apprehension of bias in the mind of a reasonable man, can be a good ground for the termination of the mandate of an arbitrator." However, the parties shall be precluded from challenging the same if they had the knowledge of facts affecting impartiality and continue with proceeding on the principle of * waiver’. Procedure for challenging the appointment of Arbitrator. a Scanned with CamScannerAberrate esohtion (ADB) Section 13 lays down that - "(1) Subject to the provisions of the act, the parties are free to agree on a procedure for challenging an arbitrator. (2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstances referred to in sub-section (3) of section 12, send a written statement of the reasons for the challenge to the arbitral tribunal. (3) Unless the arbitrator challenged under sub-section (2) withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge (4) If a challenge under any procedure agreed upon by the parties or under the procedure under sub-section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award. (©) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34. (6) Where an arbitral award is set aside on an application made, the Court may decide as to whether the arbitrator who is challenged is entitled to any fees. The Act provides adequate safeguards and incentives to the Arbitrator to proceed only if he is independent or impartial. The Act provides that withdrawal of Arbitrator shall not imply correctness of challenge and encourage independent person to withdraw. Further it cautions the unscrupulous arbitrator that even if he continues as a Tribunal, the Court can deny him the fee of arbitrator, having found him on wrong foot. Q20) Who can be appointed as an arbitrator ? - Ans) Section 2 (1) (d) defines the term ‘Arbitral Tribunal’. Accordingly, Arbitral Tribunal means, a sole Arbitrator or a panel of Arbitrators. Section 10 and Section 11 of the Arbitration and Conciliation Act, 1996, provides for composition of Arbitral Tribunal. Section 10 (1) provides that, while making an appointment of Arbitrator, Parties to dispute are free to determine the total number of Arbitrators. But such total number of Arbitrators shall not be an even number. The total number of Arbitrators appointed by the Parties, must be an odd number. According to Section 10 (2), if the Parties to Arbitral Agreement fail to determine the total number of Arbitrators, then the Arbitral Tribunal shall consist of only one Arbitrator or sole Arbitrator. The Arbitrators to be 2 Scanned with CamScannerAberrate esobtion (ADB) appointed for an Arbitral proceedings, must give their free consent to act as an Arbitrator, to adjudicate upon the dispute which is the subject matter of Arbitration Agreement. Section 11 of the Arbitration and Conciliation Act, 1996, provides for the appointment of Arbitrators to conduct the Arbitral proceedings on reference of a dispute for adjudication. Section 11 of the Arbitration and Conciliation Act, 1996 lays down that - > A person of any nationally may be an arbitrator, unless otherwise agreed by the parties. > Subject to the provisions of Act, the parties are free to agree ona procedure for appointing the arbitrator or arbitrators > If the parties fail to determine the procedure of appointment of Arbitrators, the if the arbitration is with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. If @ party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment. In such situations, the appointment shall be made, upon request of a party, by the Chief Justice or any person or institution designated by him. > Where, under an appointment procedure agreed upon by the parties and (i) a party fails to act as required under that procedure; or (ii) the parties, or the two appointed arbitrators, fai) to reach an agreement expected to them under that procedure; or (iii) a person, including an institution, fails +o perform any function entrusted to him or it under that procedure, then @ party may request the Chief Justice or any person or institution designated by him to take the necessary measure, unless the agreement ‘on the appointment procedure provides other means for securing the oppointment. > A decision on a matter entrusted on the Chief Justice or the person or institution designated by him is final. > The Chief Justice or the person or institution designated by him, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties; and other considerations as are likely to secure the appointment of an independent and impartial arbitrator. > In the case of appointment of sole or third arbitrator in an international commercial arbitration, the Chief Justice of India or the person or 23 Scanned with CamScannerAberrate esohstion (ADB) institution designated by him may appoint an arbitrator of a nationality other than the nationalities of the parties where the parties belong to different nationalities. > Where more than one request has been made to the Chief Justices of different High Courts or their designates, the Chief Justice or his designate to whom the request has been first made under the relevant sub-section shall alone be competent to decide on the request. in an international commercial arbitration, the reference to "Chief Justi in those sub-sections shall be construed as a reference to the "Chief Justice of India". v Q21) When, on whose instance and on what grounds an arbitral award may be set aside ? Ans. 1) Who can apply of setting aside an award: Section 34(1) provides that recourse to a Court against an arbitral award may be made only by an application for setting aside such award (by a party to the award) in accordance with section 34(2) and 34(3). On receipt of an application under sub-section (1), the Court may, where it is appropriate and it is so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the arbitral tribunal on opportunity to resume the arbitral proceedings or to take such other action as in the opinion of arbitra? tribunal will eliminate the grounds for setting aside the arbitral award. IT) Grounds for setting aside an award Section 34(2) lays down as to grounds for setting aside an award that - An arbitral award may be set aside by the Court only if: (@) the party making the application furnishes proves that: () a party was under some incapacity: or ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration. Provided that, if the decisions on matters submitted to arbitration can be separated from 2 Scanned with CamScannerAberrate esohtion (ADB) those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside: or (¥) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties (b) the Court finds that: (@ ‘the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conflict with the public policy of India TI) Period within whi licatic r_settin ide arbitration be made: Section 34(3) lays down that an application for setting aside arbitration award may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award, or if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal; But if the court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter. Q22) Write a short note on New York Convention on Arbitration. Ans) The term “convention of arbitration” typically refers to international treaties that establish a common framework for the recognition and enforcement of arbitration agreements and awards. One of the most significant of these is the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Convention. Adopted in 1958 in New York, the convention requires courts of the contracting states to recognize and enforce international arbitration agreements and arbitral awards issued in other contracting states. This convention is widely regarded as a foundational element of international arbitration, facilitating trade and investment by providing a reliable and efficient means for resolving disputes without resorting to loca? courts. The New York Convention has been ratified by a large number of countries, making it one of the most important instruments in international trade law. It's managed by the United Nations Commission on International Trade Law (UNCITRAL), which plays a crucial role in modernizing the law of international trade. 25 Scanned with CamScannerAberrate esobition (ADB) Under the New York Convention 1958, an award issued in a contracting state can generally be freely enforced in any other contracting state, only subject to certain, limited defences. These defences are as under: ) a party to the arbitration agreement was, under the law applicable to him, under some incapacity; b) the arbitration agreement was not valid under its governing law: ¢) @ party was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings, or was otherwise unable to present its case; d) the award deals with an issue not contemplated by or not falling within the terms of the submission to arbitration, or contains matters beyond the scope of the arbitration (subject to the proviso that an award which contains decisions on such matters may be enforced to the extent that it corr ns on matters submitted to arbitration which can be separated from those matters not so submitted); e) the composition of the arbitral authority was not in accordance with the agreement of the parties or with the law of the place where the hearing took place (the “lex loci arbitri"); f) the award has not yet become binding upon the parties, or has been set aside or suspended by a competent authority, either in the country where the arbitration took place, or pursuant to the law of the arbitration agreement; 9) the subject matter of the award was not capable of resolution by arbitration; h) enforcement would be contrary to “public policy. The New York Convention is not actually the only treaty dealing with cross- border enforcement of arbitration awards. The earlier Geneva Convention on the Execution of Foreign Arbitral Awards 1927 remains in force, but the success of the New York Convention means that the Geneva Convention is rarely utilised in practice. deci Q23) Write short note on place of arbitration? Ans) As per Section 20(t), parties are free to agree on the place of arbitration. In case of failure to decide, the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties [Sec 20 (2)] Notwithstanding that the place of arbitration has been determined as above, the arbitral tribunal may, unless otherwise agreed by the parties, meet at 26 Scanned with CamScannerAlternate esohtion (408) any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property. [Sec: 20 (3)] In domestic arbitration, the place of arbitration can be anywhere in India according to the agreement of the parties. If arbitration is under the rules of an institution, it is generally conducted at the place where the institution is located, subject to agreement to the contrary. Q24) What is foreign award? State when foreign award can become binding and enforceable? Ans) A Foreign Award in the context of Alternate Dispute Resolution (ADR) refers to an arbitral award that is made in a country other than the one where enforcement is sought. Section 44 of Arbitration and Conciliation Act,1996 defines “foreign award" as an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India. The enforcement of foreign arbitra? awards is governed by international conventions like the New York Convention 1958, or Geneva Convention. The enforcement of these awards is considered one of the main factors in the success of International Commercial Arbitration. Enforceability of foreign award: A foreign arbitral award becomes binding and enforceable under certain conditions as per the Arbitration and Conciliation Act, 1996 in India. The main points relating to enforceability are as under: > Recognition: India is a signatory to the New York Convention and the Geneva Convention. If a foreign award is from a country that is a signatory to either of these conventions and the award is made in a territory notified as a convention country by India, it is recognized Enforceability: According to Section 46 of the Arbitration and Conciliation ‘Act, any foreign award that is enforceable under Chapter I of Part IT shall be treated as binding for all purposes on the persons between whom it was made. It can be relied upon by any of those persons by way of defence, set off, or otherwise in any legal proceedings in India. > Execution (Section 56 of Act): For the execution of a foreign award, the successful party must move an application to the court of competent jurisdiction for the enforcement of the award. If the court is satisfied that the award is enforceable, then the foreign award can be executed just like a decree of the court. v 2 Scanned with CamScannerAberrate esohtion (ADB) v It's important to note that the enforceability of a foreign award also depends on the award not being in conflict with the public policy of India and meeting other criteria such as proper notification to the parties involved and the award being final and binding. > The subject matter of award is capable of settlement through arbitration under law in India. > If the award is annulled in the country in which it is made then the same shall not even be enforceable in India. However, it's important to note that while a foreign award cannot be disputed, its enforcement can be opposed on the same grounds that are available for a domestic award. This means that while the award itself is final and binding, its enforcement in a particular jurisdiction can be chailenged under certain circumstances. Q25) Short note on Lok Adalat? Ans) A Lok Adalat, which also known as “People’s Court”, is an alternative dispute resolution mechanism used in India. I: a forum where disputes or cases pending in the court of law or at a pre-litigation stage are settled or compromised amicably. The evolution of Lok Adalat was a part of the strategy to relieve heavy burden on the courts with pending cases and to give relief to the litigants. The first Lok Adalat was held on March 14, 1982 at Junagarh in Gujarat. Maharashtra commenced the Lok Nyaya Laya in 1984. Gradually, the Lok Adalats were built in every State of India. Presently, Lok Adalats have been given statutory status by The Legal Services Authorities Act, 1987. Features of Lok Adalat: a) No court fee is payable. If any court fee is already paid by a party, the same will be refunded. b) It is based on settlement or compromise reached through regular and structured negotiations. ©) It is one among the most effective Alternate Dispute Resolution (ADR) systems for weaker sections of the society. d) Code of Civil Procedure and Indian Evidence Act are not applicable to the e) proceedings under Lok Adalat. f) Lok Adalat is deemed to be civil court for certain purposes. 9) A Lok Adalat has certain powers of a civil court. h) The parties to a dispute can interact directly with the presiding officer, which is not possible in the case of a court proceeding. 28 Scanned with CamScannerAberrate esohtion (408) i) The award passed by the Lok Adalat is deemed to be a decree of a civil court. An award passed by the Lok Adalat is final and no appeal is maintainable from it. ) An award passed by the Lok Adalat can be executed in a court of law. Kk) The award can be passed by Lok Adalat, only after obtaining the concurrence of all the parties to dispute. 1) A Permanent Lok Adalat can pass an award on merits, even without the consent of parties. Such an award is final and binding. From that no appeal is possible. mm) Composition: The Lok Adalat is composed of a chairman, two members, and one social worker. The chairman must be a sitting or retired judicial officer. Q26) What are the advantages of Lok Adalat? Ans) Advantages of Lok Adalat / Benefits of settling disputes by Lok Adalat: a) It is a very speedy procedure as the parties submit to Lok Adalat with an intention to arrive at a settlement. b) It reduces the burden of courts and enables the litigants to arrive at a settlement in a cost-effective manner. ©) It ensures that the cordial relations between the parties are maintained since the main thrust is on compromise and not punishment. d) Strict procedures under the Code of Civil Procedure and the Indian Evidence Act are not applicable in cases before Lok Adalats ©) Despite no strict procedure, the award under the Lok Adalat is deemed to be a decree of a civil court. f) There is no court fee and even if the case is already filed in the regular court, the fee paid will be refunded if the dispute is settled at the Lok Adalat. 9) Disputes can be brought before the Lok Adalat directly instead of going to a regular court first and then to the Lok Adalat. h) The decision of Lok Adalat is binding on the parties and no appeal lies against the order of the Lok Adalat whereas, in courts of law there is always a scope to appeal to the higher forum which cause delay in the settlement of disputes. i) No Fee: There is no court fee payable when a dispute is filed in a Lok Adalat. ii) Amicable Resolutions: The Lok Adalat shail not decide the dispute so mentioned at its own instance (i.e there is no adjudication on the basis of 29 Scanned with CamScanner