Definitions
Rule 1 :
- These rules may be called the "Rules of Arbitration of the
Indian Council of Arbitration".
- These rules shall apply where parties have agreed in writing
that (a) a dispute has arisen or (b) a dispute which may arise
between them in respect of a defined legal relation-ship whether
contractual or not shall be settled under the Rules of
Arbitration,
Rule 2 : In these rules, the following words have the following
meanings:
- "Arbitral Tribunal" means an arbitrator or arbitrators
appointed for determining a particular dispute or difference.
- "Arbitral Award" includes an interim award.
- "Committee" means the Arbitration Committee of the Council as
provided for hereinafter.
- "Council" means the Indian Council of Arbitration;
- "Governing Body" means the Governing Body of the Council;
- "Guidelines" means the guidelines for arbitrators and the
parties to arbitration for expeditious conduct of the arbitration
proceedings given in the Annexure to these Rules.
- "International Commercial Arbitration" means an arbitration
relating to disputes arising out of legal relationships, whether
contractual or not, considered as commercial under the law in force
in India and where at least one of the parties is (i) an individual
who is a national of, or habitually resident in, any country other
than India; or (ii) a body corporate which is incorporated in any
country other than India; or (iii) a company or an association or a
body of individuals whose central management and control is
exercised in any country other than India; or (iv) the Government
of a foreign country.
- "Party" means a party to an arbitration agreement. It shall
include any individual, firm, company, Government, Government
organisation or Government Undertaking.
- "Panel" means the Panel of Arbitrators maintained by the
Council.
- "Registrar" means the Registrar for the time being appointed by
the Committee and includes such other persons as the Committee may
nominate for carrying out the duties of the Registrar under these
rules.
- "Rules" means the Rules of Arbitration of the Council;
- "Fast Track Arbitration" means arbitration in accordance with
Rule 44.
- Words importing the singular number include, where the context
admits or requires, the plural number and vice versa.
Arbitration Committee
Rule 3 :
- The Governing Body of the Council shall constitute an
Arbitration Committee for performing the functions prescribed under
these Rules. The Committee shall consist of the President of the
Council, who shall be the ex-officio Chairman of the Committee and
three members of the Governing Body of the Council elected by the
Governing Body from amongst themselves. The Committee shall hold
office for a year.
- The Committee may co-opt not more than two persons to be
additional members of the Committee during its terms of office.
Persons who are not members of the Governing Body may also be
co-opted to be members of the Committee.
- The Committee or the Chairman of the Committee may delegate to
the Registrar the power to take certain decisions provided that any
such decision shall be reported to the Chairman or the Committee as
the case may be.
Rules Applicable
Rule 4 :
- Any dispute relating lo any commercial matter including
shipping, sale, purchase, banking, insurance, building
construction, engineering, technical assistance, know-how, patents,
trade marks, management consultancy, commercial agency or labour,
arising between two or more parties in India or a party or parties
in India and a party or parties in a foreign country or between
foreign parties who agree or have agreed for arbitration by the
Council or under the Rules of Arbitration of the Council, shall be
determined and settled in accordance with these Rules.
- The Council shall also be competent to administer the conduct
of arbitration in any dispute or difference relating to a
commercial transaction between parties as mentioned in sub-clause
(a) where they have agreed to have their dispute arbitrated under
any other Rules of Arbitration or otherwise and have agreed to have
such arbitration administered by the Council, wholly or in re-
spect of some matters arising out of such arbitration.
- The Council shall be competent to function as Appointing
Authority as contemplated under the Arbitration Rules of the United
Nations Commission on International Trade Law (UNCITRAL).
Rule 5 :
Wherever the Parties have provided or agreed for arbitration by
the Indian Council of Arbitration or for arbitratior under the
Rules of Arbitration of the Council, these rules or any amendment
thereof in the form obtaining at the time the dispute is referred
to arbitration of the Council, shall apply.
Rule 6 :
If one or both of the parties to a dispute which is referred to
arbitration by the Council belong to a country or countries; other
than India, in the absence of an agreement by the Parties on the
substantive law to be applied, it will be determined by the
arbitral tribunal. The procedural law shall be the laws of India
and parties shall be deemed to have submitted to the jurisdiction
of the Courts in India.
Rule 7 :
Any chamber of commerce, trade association or any arbitra or
other organisation may adopt these Rules; by making them generally
available to its members or by applying them to any disnute in
which anv of its members may be parties or by normally conducting
its arbitration under these Rules.
Interpretation of the Rules
Rule 8 :
The decision of the Committee on any question relating to
interpretation of these rules or any procedural matter there under
shall be final and binding on the parties.
Panel of Arbitrators
Rule 9 :
A Panel of Arbitrators shall be appointed by the Committee from
amongst persons who are qualified and willing to serve as
arbitrators generally or in specific fields and who are from time
to time recommended by the members of the Council or any other
person or organisation.
Rule 10 :
The Registrar shall prepare and maintain an up-to-date Panel of
Arbitrators together with adequate information .as to their
qualifications and experience. Separate lists may be kept and
maintained of arbitrators included in the Panel for disputes in
general and for each of the fields of interna- tional trade and/or
business transactions in which the Gov- erning Body decides that
the Council will offer arbitration facilities under the Rules.
The parties to a dispute or the Registrar where he appoints the
arbitrator may choose any person from the Panel with reference to
any dispute. If any party appoints a foreigner/ residing abroad, as
arbitrator from the Panel, that party will have to meet the travel
& stay expenses of the person ap- pointed as arbitrator from
his country to the place of arbi- tration. The arbitral tribunal
may, however, make any order in regard thereto in the award. The
Panel of Arbitrators shall be open to inspection by all persons
with the permis- sion of the Registrar.
Rule 11 :
The Committee may at any time add the name of any per- son to
the list of arbitrators included in the Panel or delete the name of
any person from the Panel.
Rule 12 :
The Chairman of the Committee may include the name of any person
in the Panel, in case it is required in any par- ticular case. His
continuance in the Panel will be decided by the Committee.
Rule 13
The persons who have attained the age of more than 80 years will
automatically cease to be member of the Panel of Arbitrators. In
case a person who has been appointed as Arbitrator before
attainment of the age of 80 years, his panel membership will
continue till the pronouncement of the Award in pending arbitration
matter referred to him.
Duties of the Registrar
Rule 14 :
- The Registrar shall receive applications for arbitration by the
Council, receive payment of fees and deposits, appoint in
consultation with the Chairman of the Committee and in his absence
in consultation with the member of the Governing Body designated by
him, an arbitrator or arbitrators as hereinafter provided. The
Registrar shall also receive all communications made to the
arbitral tribunal by the parties and communicate to them the orders
and directions of the arbitral tribunal, keep a register of
applications to the Council and of awards made by the arbitral
tribunal, keep such other books or memoranda and make such other
records or returns as the Committee. shall from time to time
require and generally carry out the directions of an arbitral
tribunal so constituted under these rules and take such other steps
as may be necessary to-assist such arbitral tribunal in the
carrying out of its functions.
- The Registrar may delegate to any officer of the Council,
Chambers of Commerce or Trade Association at the premises of which
the arbitration proceedings are taking place, to discharge such of
the functions and administrative duties of the Registrar as are
deemed proper and necessary from time to time, with reference to a
particular case or cases.
Initiation of Arbitration
Rule 15 :
Any Party wishing to commence arbitration proceedings under
these rules (Claimant) shall submit to the Registrar a written
request (application) for arbitration which shall include or be
accompanied by:-
- the names and full addresses of the parties to the dispute
- statement of the claim and facts supporting the claim, points
at issue and relief or remedies sought with other details of the
claimant's case.
- original or duly certified copies of the arbitration agreement,
any contract or agreement out of or in connection with which the
dispute has arisen and such other documents and informa- tion
relevant or relied upon.
- Registration fee of Rs. 1000/-.
Rule 16 :
If any Court makes an order directing that an arbitration be
held under these Rules, in addition to the documents listed in
Rules 15, the order of that Court or a copy thereof shall accompany
the application for arbitration.
Rule 17 :
- On receipt of an application for arbitration, the Registrar
shall have absolute discretion to accept or reject the said
application. The Registrar is not bound to give reasons for the
exercise of his discretion.
Before deciding on the acceptability of an application for
arbitration, the Registrar may ask the parties for further
information and particulars of their claims.
- Similarly, if any information or particulars regarding the
arbitration agreement furnished-by claimant with the application
for arbitration are found to be incorrect or false, at any time
subsequently, the Registrar shall have a like power to reject the
application for arbitration.
- Any Party aggrieved by the decision of the Registrar, in
accepting or rejecting an application for arbitration as above, may
apply to the Court for suitable directions.
Defence Statement
Rule 18 :
- On receipt of the application together with the claim
statement, the Registrar shall send to the other Party (Respondent)
a copy of claim statement and attached documents and ask such other
party to furnish within thirty days or within any extended date, a
defence statement setting out his case accompanied by all documents
and information in support of or bearing on the matter.
- Any communication sent by the Registrar under Registered Post
to the Respondent on the address appearing in the Arbitration
Agreement/the contract between the parties, as per the information
supplied to the Council, will be deemed to be duly served on the
Respondent, if it is delivered to the addressee personally or at
his place of business, habitual residence or mailing address last
known, even if the Respondent refuses to accept the said
communication or if it is returned to the Council by the postal
authorities as unclaimed by the said party. The Registrar may
proceed further with the arbitration proceedings as per the rules
as if such communication had been duly served on the concerned
party. The Registrar may in such cases make an additional
communication to the Parties by registered letter or by other means
which may provide a record of attempts to deliver it.
- A copy of the defence statement and all appended documents, if
any, shall be sent to the Claimant for information.
- The communication is deemed to have been received on the day it
is so delivered.
Counter-Claim and Reply to Counter-Claim
Rule 19 :
- The Respondent may make a counter-claim against the Claimant
provided the counter-claim arises under the same transaction as the
original claim. He must submit the counter-claim with full details
supported by all documents and information as in the case of the
claim under Rule 14 within the period laid down for the defence
statement to the claim and the Claimant may within twenty-one days
of the notification of the counter claim or within such extended
time submit a statement in reply to the counter-claim. The arbitral
tribunal appointed to adjudicate upon the original claim shall also
adjudicate upon the counter-claim.
- Copy of the reply of the Claimant to the counter-claim and all
appended documents, if any, shall be sent to the Respondent for
information.
Copies of Statements, etc.
Rule 20 :
All statements, replies and other documents and papers submitted
by the parties and all appended documents must be supplied in
triplicate. Where there is more than one arbitrator or more than
one opposing party, the parties shall within the time specified
furnish to the Registrar such number of further copies as may be
required by the Registrar.
Constitution of the Arbitral Tribunal
Rule 21 :
On receipt of the application for arbitration, the Registrar
shall take necessary steps to have the arbitral tribunal
constituted for the adjudication of the dispute or difference as
provided hereunder;
Rule 22 :
The number of arbitrators to hear a dispute shall be determined
as under:
- Where the claim including determination of interest, if any,
being claimed upto the date of commencement of arbitration in terms
of Rule 15, does not exceed Rs. One crore and where the arbitration
agreement does not specify three arbitrators, the reference shall
be deemed to be to a sole arbitrator, unless the parties to the
dispute agree to refer the dispute to three arbitrators within
thirty days from the date of notification of request for
arbitration.
- Where the claim including determination of interest, if any,
being claimed upto the date of commencement of arbitration in terms
of Rule 15 exceeds Rs. One crore the dispute will be heard and
determined by three arbitrators, unless the parties to the dispute
agree to refer the dispute to a sole arbitrator within thirty days
from the date of the notification of the request for
arbitration
- Where three arbitrators have to appointed as per the above
sub-rule and any of the parties to the dispute fails to make the
necessary deposit towards the cost and expenses of arbitration,
instead of three arbitrators, the Registrar may appoint a sole
arbitrator, where the claim is upto One crore. Where the claim is
for more than Rs. One crore, the Registrar may appoint arbitrator/s
on behalf of the Respondent as well the as Presiding
Arbitrator.
Rule 23 :
The appointment of sole arbitrator or three arbitrators shall be
made in the following manner :
- In case a Sole Arbitrator has to be appointed, the Registrar
shall call upon the parties to the dispute to forward the name of
an agreed arbitrator from among the Panel of Arbitrators by a
notice in writing, sent to them. The said notice shall specify the
period within which the nomination shall be made which shall not be
more than thirty days from the date of the said notice to the
respective parties. If the parties fail to agree on the person to
be appointed as sole arbitrator within the time granted by the
Registrar, the Registrar in consultation with the Chairman of the
Committee and in his absence in consultation with the member of the
Governing Body designated by the Chairman, shall appoint the sole
arbitrator from among the Panel of Arbitrators. If one of the
parties is a national or resident of a country other than India,
the sole arbitrator shall, as far as possible, be chosen or
appointed by the Registrar from among the nationals of a country
other than that of either of the parties. The sole arbitrator so
nominated shall constitute the arbitral tribunal to hear the
dispute and shall be appointed as such in writing by the Registrar.
The Registrar shall give notice to the Parties of the constitution
of the arbitral tribunal..
- Where the reference is to three arbitrators, the Registrar
shall in the first instance call upon the parties to nominate one
arbitrator each from among the Panel of Arbitrators by a notice in
writing, sent to them. The said notice shall specify the period
within which the nomination shall be made which shall not be more
than thirty days from the date of the said notice to the respective
Parties. If a Party to the dispute refuses or neglects to appoint
an arbitrator on his behalf within the period specified or if he
requests the Registrar to nominate an arbitrator on behalf of that
party, the Registrar in consultation with the Chairman of the
Arbitration Committee and in his absence in consultation with the
members of the Governing Body designated by the Chairman shall
appoint the arbitrator from the Panel of arbitrators on behalf of
that party. On receipt of the nominations from the respective
parties or on the appointment as aforesaid by the Registrar, the
Registrar shall appoint another person as the Presiding Arbitrator
of the arbitral tribunal in consultation with Chairman of the
Committee and in his absence in consultation with members of the
Governing Body designated by the Chairman, from among the panel of
arbitrators to be additional arbitrator to act as Presiding
Arbitrator of the arbitral tribunal.
- If one of the parties is a national or resident of a country
other than India, the additional arbitrator shall, as far as
possible, be chosen or appointed from among the nationals of a
country other than that of either of the parties. The arbitrators
so nominated or appointed shall constitute the arbitral tribunal
and shall be appointed as such in writing by the Registrar. The
additional arbitrator appointed by the Registrar shall act as
Chairman of the arbitral tribunal. The Registrar shall give notice
to the parties of the constitution of the arbitral tribunal.
Rule 24 :
The parties will obtain the consent from the persons nominated
by them as arbitrator and intimate the Council accordingly. The
Registrar will obtain the consent from person (s) nominated by him.
After a person gives his consent for appointment as arbitrator, he
will be duly intimated about his appointment to decide the dispute
by a Memo in writing under the hand of the Registrar about the
constitution of the arbitral tribunal. The appointment of the
arbitrator will take effect from the date of such intimation about
the constitution of the arbitral tribunal.
Rule 25 :
Before accepting his nomination the prospective arbitrator shall
disclose any circumstances such as financial or personal interest
in the outcome of the award, likely to disqualify him as an
impartial or independent arbitrator. Upon receipt of such
information, the Registrar shall disclose it to the parties, who if
willing to proceed under the circumstances disclosed, shall advise
the Registrar accordingly. If either party declines to waive the
presumptive disqualification, the prospective arbitrator shall be
disqualified from acting as arbitrator and the vacancy so created
shall be filled, in accordance with the applicable provision of
these Rules.
Rule 26 :
Any Party shall have the right to challenge the appointment of
an arbitrator on receipt of the notice of his appointment for
reasons which disqualify him as an impartial or independent
arbitrator. The Challenge of an arbitrator shall be made within 30
days after his appointment has been communicated to the challenging
party or within 30 days of his becoming aware of the reasons for
which the challenge is made. Copies of the communication of
challenge shall be sent to the other Parties and the arbitrators.
The Committee shall be the sole judge of the grounds of challenge
and its decision shall be final and binding on the Parties.
Rule 27 :
- If any appointed arbitrator resigns or dies or becomes
incapable of acting or neglects or fails to act expedi- tiously,
prior to or during the arbitration hearings, or if he fails to make
the award within the prescribed time and the Parties do not agree
to extend the time for making the award, the Registrar in
consultation with the Arbitration Committee may terminate the
authority of such an appointed arbitrator and inform him
accordingly.
- In case of the resignation or death or termination of authority
of an appointed arbitrator under Sub-Rule (a) above, a new
arbitrator will be appointed in his place by the Registrar in case
he had appointed the original arbitrator. Where the appointment was
made by the Parties, the Registrar shall call upon the Party who
had appointed the arbitrator to nominate another arbitrator in his
place. If any Party refuses or neglects to nominate an arbitrator
within 15 days of the date of notice requiring him to nominate the
arbitrator or within such extended time, the Registrar shall
nominate the arbitrator on behalf of that Party from among the
Panel of Arbitrators.
- The arbitrator (s) appointed as above will be informed about
the reconstitution of the arbitral tribunal and the reconstituted
arbitral tribunal shall make the award ex- peditiously within the
time prescribed under Rule 63 from the date when the reconstituted
arbitral tribunal enters on the reference. The reconstituted
arbitral tribunal shall proceed with the arbitration with the
liberty to act on the record of evidence and proceedings as then
existing or to commence the proceedings de novo.
Deposits
Rule 28 :
The Registrar may require the Parties before passing the case on
to the arbitrators under Rule 38, to deposit in advance in one or
more instalments such sums of money as he deems necessary to defray
expenses of the arbitration including the administrative charges
and arbitrator's fee. As a general rule, the deposits shall be
called for in equal shares from the Claimant (s) and the
Respondents). The arbitral tribunal may during the course of the
arbitration proceedings or in the arbitration award, require
further sums to be deposited by the Parties or anyone of them to
meet the expenses of the arbitration. When one of the parties
neglects or refuses to make the deposit, the Registrar or the
arbitral tribunal as the case may be, may require such deposit
whether in relation to a claim or a counter-claim to be made by the
other Party to the dispute (Claimant or Respondent as the case may
be). Should the whole or part of the deposit be not made by the
Parties or any one of them, the Registrar shall inform the Parties
or the Party concerned that the claim or counter-claim, as the case
may be, will not be the subject matter of the reference. The
arbitral tribunal shall proceed only in respect of those claims or
counter-claims for which the deposits has been duly paid to the
Council and other- wise may order the suspension or termination of
the arbitral proceedings.
All deposits towards costs and expenses shall be made with the
Council and no payment shall be released to the arbitrators
directly by the parties. The deposit made shall be taken into
account by the arbitral tribunal in apportioning the cost while
making the award. Any deposit made in excess shall be refunded to
such of parties as the arbitral tribunal may direct.
The councill shall have a lien for the arbitral award on any
unpaid cost of the arbitration.
Fees and Expenses
Rule 29 :
The arbitral tribunal shall be entitled to allow fees and
expenses of witnesses, expenses connected with the selection and
carriage of sample and examination of goods, Licensed Measure's
Department charges, conveyance, hire, cost of legal or technical
advice or proceedings in respect of any matter arising out of the
arbitration incurred by the arbitration tribunal, and any other
incidental expenses and charges in connection with or arising out
of the reference or award as the arbitration tribunal shall, in its
absolute discretion, think fit.
Rule 30 :
The costs of the reference and the award including charges, fees
and other expenses shall be in the discretion of the arbitral
tribunal, which may direct to and by whom, and in what proportion,
such charges, fees and other expenses and any part thereof shall be
borne and paid, and may fix and settle the amount of costs to be so
paid or any part thereof and may award costs to be paid as between
solicitor and client. In the event, any administrative fees and
expenses are due to the Council, the arbitral tribunal may award
them in favour of the Council.
Rule 31 :
The fees, costs and expenses incidental to the reference and the
award shall include the following :
- Registration Fee
A registration fee of Rs. 1.000/- shall be paid along with the
application for reference. The registration fee will not be
refunded and becomes the property of the Council.
- Administrative Fee and Arbitrator's Fee
The Administrative fee (of ICA) and Arbitrator's fee (foreach
arbitrator) will be fixed separately with regard to the amount in
dispute in each case, as under:
Upto Rs. 5 lac (Rs.500,000)
|
Rs.8,000/-
|
From Rs. 5 lac one to Rs. 25 lac
(Rs.500,001 to 2,500,000)
|
Rs.8,000/- plus Rs.200/- per lac or part thereof subject to
aceiling of Rs.18,000/-
|
From Rs. 25 lac one to Rs. I crore
(Rs.2,500,001 to Rs.10,000,000)
|
Rs.18,000/- plus Rs.200/- per lac or part thereof subject to
aceiling of Rs. 33,000.
|
From Rs. I crore one to Rs. 5 crore
(Rs.10,000,001 to Rs.50,000,000)
|
Rs.33,000/- plus Rs.5,000/- per crore or part thereof subject to
a ceiling of Rs.53,000
|
From Rs. 5 crore one to Rs. 10 crore
(Rs.50,000,001lo Rs.100,000,000)
|
Rs.53,000/- plus Rs.3,000/- per crore or part thereof subject to
a ceiling of Rs.68,000
|
Over Rs.lO crore (Rs.100,000,000)
|
Rs.68,000/- plus Rs.2,500/- per crore or part thereof
|
- In addition to above
- each arbitrator will be entitled to receive a Special Fee for
study of the pleadings, case material, writing of the award etc.
with regard to the amount in dispute in each case as under :
Upto Rs. 5 Lac (Rs.500,000)
|
Rs.l,000/- lumpsum
|
From Rs. 5 lac one to Rs. 5 crore
(Rs.500,001 to Rs.50.000,000)
|
Rs.2,000/- lumpsum
|
Rs. 5 crore one and above
(Rs.50,000,001 and above)
|
Rs.5,000/- lumpsum
|
- The ICA will be entitled to receive a Special Fee of Rs.500/-
per hearing for providing facilities of hearing rooms, for
arbitration hearings and secretarial assistance etc. at the
arbitration hearing.
- Notwithstanding the provisions in Sub-Rule (2) of this Rule,
the Committee/Chairman of the Committee may prescribe the
Arbitrator's fees and the Administrative fees of the Council at a
figure higher than those prescribed in the said Sub-Rules, if .n
the exceptional circumstances of the case this appears to be
necessary.
- Notwithstanding the provision in Sub-Rule (2) hereinabove, in
arbitration cases to which Rule 39 applies, the Arbitrator's fee
and the Administrative fee of the ICA will be fixed by computing
the fee applicable to larger claim in addition to 60% of the
applicable fees of all claims being tried jointly. Provided that
the Committee will have power to prescribe the Arbitrator's Fee and
Administrative Fee under this Sub-Rule in any other manner, having
regard to the nature and facts of the matters under reference.
Rule 31 : Other expenses
The arbitrator may be paid an amount of Rs. 250/- towards local
conveyance for attending each arbitration hearing in the city of
his residence. In respect of joint trial, the hearing will be
treated as one irrespective of the number of cases. Any travelling
and other expenses incurred by the arbitrator or the Registrar for
attending the arbitration hearings in a city other than the place
of residence, shall also be reimbursed to him as provided
hereinafter. All the above expenses shall form part of the
arbitration costs.
Rule 32 :
Other expenses : The arbitrator may be paid an amount
of Rs. 250/- towards local conveyance for attending each
arbitration hearing in the city of his residence. In respect of
joint trial, the hearing will be treated as one irrespective of the
number of cases. Any travelling and other expenses incurred by the
arbitrator or the Registrar for attending the arbitration hearings
in a city other than the place of residence, shall also be
reimbursed to him as provided hereinafter. All the above
expenses
Rule 33 :
- An arbitrator who has to travel shall be paid travelling
expenses by air or rail (air conditioned wherever available) or car
(when neither air nor rail transport is available) at actuals. In
addition, he may be paid outof-pocket expenses at actuals for
boarding, lodging and local transport subject to maximum of Rs.
6,000/- per day in metropolitan towns, Rs. 3,000/- in class A
cities and Rs. 2.,000/- in other cities. An arbitrator who makes
his own arrangements for boarding, lodging, local transport etc.
may be paid out of pocket expenses at the rate of Rs.1,000/- per
day, without production of vouchers. The limits for stay of the
Registry officials will be of those applicable to arbitrators.
- The cost to be incurred on payment of expenses referred to in
Sub-Rule (1) to an arbitrator nominated by a party will be borne
and paid by the party nominating the arbitrator. However, if an
appointed arbitrator changes his residence after his nomination by
a party, he will not be entitled to reimbursement of any enhanced
expenses for attending the arbitration hearing, unless the party
nominating him agrees to reimburse the same to him. The expenses
payable to the third arbitrator or sole arbitrator appointed by the
Council under Rule 23 (a) & (b) will be borne and paid by both
the parties in equal proportion or in such other manner as may be
determined by the Arbitral Tribunal.
Rule 34 :
Where the arbitration proceedings under an adhoc arbitration or
under the rules of arbitration of any other arbitral organisation
or otherwise are administered by the Council wholly or in respect
of some matters arising out of such arbitration, the Council may
charge an appropriate fee for such administration and other
services.
Rule 35 :
The amount of the claim shall be stated in the application by
the party applying for arbitration. If the amount is stated in a
currency other than the rupee, it shall be converted into Rupees,
at the current official rate of exchange.
Rule 36 :
Where the sum under dispute is not stated or in arbitration
proceedings and where the relief claimed is other than a money
claim, viz., a declaratory claim, the Registrar and the Arbitral
Tribunal under Rule 28, may require such deposits as may be deemed
necessary to be paid by such of the parties as may be required
subject to later adjustment.
Rule 36 :
The amount of interest wherever specified will be included in
the claim amount for the purpose of calculation of administrative
fee. Further, claims and counter-claims referred for arbitration
shall be taken into consideration separately for the purpose of
calculation of administrative fees under Sub Rule 31(2).
Submission of the case to the Arbitral Tribunal
Rule 38 :
The Registrar shall send copies of all papers relating to
arbitration such as claim statement, defence statement,
counter-claims, reply, statements, or other documents received from
the parties to the dispute to the Arbitrator/Arbitrators
constituting the Arbitral Tribunal under Rule 22 with a request to
proceed with the arbitration and the arbitral tribunal shall be
deemed to have entered on the reference on the day on which
applications, defence statement, counter-claims, replies,
documents, etc. have been dispatched to the Arbitrator/Arbitrators.
Intimation shall be given to the Parties of the day on which the
Bench is deemed to have entered on the reference.
If the Claimant does not file all the requisite documents,
papers, etc. or does not deposit the appropriate Fees as per the
Rules after having been given due opportunity for the purpose by
the Registrar or the arbitral tribunal, the Registrar or the
arbitral tribunal mav dismiss/ close the case on file for lack of
pursual by the Claimant.
Similarly, if the Respondent fails to produce any requisite
documents, papers including the statement of defence or information
or fails to deposit administrative fees, or arbitrators fees etc.
after having been given due opportunity for the purpose by the
Registrar or the arbitral tribunal, the Registrar or the arbitral
tribunal may proceed further with the arbitration proceedings as
per the Rules, notwithstanding such failure or refusal by the
Respondent.
Rule 39 :
Where there are two or more applications for arbitration by the
Council and the issue involved in the dispute arises out of same
transactions, the Registrar may, if he thinks proper to do so and
with the consent of the parties, fix the hearings of the disputes
to be heard jointly or refer the applications to the same tribunal.
The awards, however, shall be given separately in each case.
Notifications and/or Communications from the Registrar
Rule 40 :
All applications which the parties desire to make to the
arbitral tribunal and all notices to be given to the Parties before
or during the course of arbitration or otherwise in relation
thereto shall be made through and sent by the Registrar who shall
communicate the orders and directions of the Arbitral Tribunal
thereon to the Parties.
Amendment of Claims, etc.
Rule 41 :
Amendments of the claim, defence statement, counter-claim or
reply submitted to the Arbitral Tribunal must be formulated in
writing by the Party so desiring. The Arbitral Tribunal will decide
whether such amendments should be allowed or not. The
Administrative fee and Arbitrator;s fee (for each Arbitrator) shall
get revised to the extent of increase for such additional
claims/counter-claims. The party making such additional
claim/counter-claim shall deposit the entire fees payable in
respect of such increase of additional claim as set out in the
schedule of fees in Rule 31(2).
Place of Arbitration
Rule 42 :
The place or venue of arbitration shall be India. The
Arbitration proceedings shall be held at such place or places in
India as the arbitral tribunal may determine having regard to the
convenience of the arbitrators and the parties. In a case in which
one or both the parties are from overseas, the arbitration
proceedings may also be held at any place outside India at the
discretion of the arbitral tribunal.
Proceedings before the bench
Conciliation
Rule 43 : Optional Conciliation:
The parties may opt for conciliation and request the arbitral
tribunal before the commencement of the arbitration proceedings
unless they have already agreed otherwise, to settle their dispute
through conciliation as per Rules of Conciliation of the
Council.
Fast Track Arbitration
Rule 44 : Fast Track Arbitration:
The Parties may opt for Fast Track Arbitration and request the
arbitral tribunal, before the commencement of the arbitration
proceedings, to decide the reference in a fixed time frame of 3 to
6 months or any other time agreed between the parties, according to
the Fast Track Arbitration procedure, as under:
- The arbitral tribunal will be authorised to decide the dispute
on the written pleadings, documents and written submissions filed
by the parties without any oral hearings.
- The arbitral tribunal shall have power to call for any further
information/clarification from the parties in addition to the
pleading and documents filed by them.
- An oral hearing may be held if both the parties make a joint
request or if the arbitration tribunal considers an oral hearing
necessary in any particular case.
- If an oral hearing is held, the arbitral tribunal may dispense
with any technical formalities and adopt such procedure as it deems
appropriate and necessary for economic and expeditious disposal of
the case.
Rule 45 :
At a hearing, a party shall be entitled to appear by counsel,
attorney, advocate or a duly authorised adviser or representative
or personally. However, where the dispute is purely of a commercial
nature, the parties shall have no right to be represented by
lawyers except where, having regard to the nature or complexity of
the dispute, the arbitral tribunal considers it necessary in the
interest of justice that the parties should be allowed to be
represented by counsel, attorney or advocate.
Rule 46 :
The arbitral tribunal may proceed with the reference
notwithstanding any failure by a party to comply with any of the
directions of the arbitral tribunal and may also proceed with the
arbitral proceedings in the absence of any. or both the parties who
fail or neglect to attend at the time and place appointed by the
arbitral tribunal, in spite of due notice.
Rule 47 :
The parties shall do all acts necessary to enable the arbitral
tribunal to-make an award expeditiously and shall not do or cause
or allow to be done, any act which will delay the proceedings or
prevent arbitral tribunal from making an award expeditiously, and
if any party does cause or allow to be done-any such act, that
party shall pay such costs as the arbitral tribunal deems
reasonable.
Rule 48 :
The arbitration session will go on as far as possible on a day-
to-day basis from 10.30 a.m. to 4.30 p.m once the hearing begins
after completion of all the formalities. The arbitral tribunal
shall not ordinarily adjourn a hearing at the request of any party,
except where the circumstances are beyond the control of the party
and the arbitral tribunal is satisfied that reasons and
circumstances for the adjournment are justified . While granting an
adjournment, the arbitral tribunal may make such orders regarding
payment of costs by one or both of the parties, as it deems fit and
reasonable.
Rule 49 :
If the parties have agreed to submit their case to arbitration
under these Rules and any party refuses or fails to take part in
the arbitration proceedings, the arbitral tribunal may proceed with
the arbitration notwithstanding such refusal or absence.
Rule 50 :
Where a party wishes to have any question arising in any
proceedings before the arbitral tribunal referred to the opinion of
the Court in the form of a special case, he shall apply in writing
to the registrar. If the arbitral tribunal decides to accede to
such request, the party applying shall be responsible for all legal
and other costs, charges and expenses that may be incurred by the
arbitral tribunal in respect of and incidental to the same and
shall make such deposit on account thereof within such time as the
arbitral tribunal may direct. In case of default in making the
deposit as above, the reference shall not be made to the Court, or
if made, shall be withdrawn by the arbitral tribunal and the
arbitration proceeded with as if there has been no reference to the
Court.
Rule 50 :
The arbitral tribunal may at its discretion at any time or times
before making the final award and at the expense of the parties
concerned, consult any person having special knowledge relating to
the particular industry, commodity, produce or branch of trade
concerned in the reference or any expert or qualified accountant
and may also at the like expenses of the parties, consult
solicitors, counsel or advocates upon any technical question of
law, evidence, practice or procedure arising in the course of the
reference. If the parties agree, the arbitral tribunal may, at the
expense of the parties, appoint any expert, accountant, or lawyers
to sit with as an assessor and take into account the advice of such
assessor.
Rule 51 :
The parties to the reference and any witness on their behalf
shall, subject to the provisions of any law for the time being in
force:
- submit to be examined by the arbitral tribunal on oath or
affirmation in relation to the matters in dispute.
- produce before the arbitral tribunal all books, deeds, papers,
accounts, writings and documents in their possession or power
respectively which may be required or called for by the arbitral
tribunal.
- comply with the requirements of the arbitral tribunal as to the
production or selection of samples, and
- generally do all other things which, during the pendency of the
reference, the arbitral tribunal may require.
Rule 52 :
The arbitral tribunal will consider, as far as possible, to
receive the evidence of witnesses by affidavit provided that the
wit- ness whose affidavit is admitted in evidence is made available
for cross-examination at the request of the opposite Party.
The Arbitral Tribunal may :
- administer oath or affirmation to the parties or witnesses ap-
pearing and giving evidence;
- state a special case for the opinion of the Court or give its
award in the form of special case for the-opinion of the
Court;
- make any award conditional or in the alternative;
- correct in any award any clerical mistake or error arising from
or incidental to any slip or omission;
- administer to the parties to the arbitration such
interrogatories as it may consider necessary;
- decide all objections to its jurisdiction including any
objection regarding the existence or validity of the arbitration
clause or the arbitration agreement, without prejudice to the right
of the parties to have the matter decided by the Court of law;
- decide the law governing :
- the contract or the matter in dispute.
- the arbitration agreement, and
- the arbitration procedure
- award interest including pendente lite interest.
Rule 53 :
When substantially the same dispute or questions of law and
facts are likely to arise in more than one contract or agreement
(Chain Contracts), the arbitral tribunal may invite all parties
involved to agree to submit to an award in one arbitration between
such two or more of the parties as are named for the purpose.
Rule 54 :
- The arbitral tribunal may by the award dismiss the application
or claim:
- if the Claimant does not prosecute the arbitra- tion
proceedings or file the papers within the time granted.
- or neglects or refuses to pay the dues or deposits ordered to
be paid by the arbitral tribunal or the Registrar.
- The arbitral tribunal may make an ex parte award :
- if the Defendant neglects or refuses to appear or make his
defence or fails to file the papers within the time granted.
- or neglects or refuses to pay the dues or deposits ordered to
be paid by the arbitral tribunal or the Registrar.
Rule 55 :
The Registrar shall make necessary arrangements for a
stenographic record of evidence whenever such record is required by
a party. The cost of the stenographic record and all transcripts
thereof, if any, shall form part of the costs of the reference.
Rule 56 :
The language of the arbitration proceedings shall be English
unless otherwise agreed by the parties. If any documents filed by a
party are in a language other than English, the party filling such
documents shall simultaneously furnish an English translation of
the documents. The Registrar may make arrangements for the service
of an interpreter at the request of one or more of the parties and
costs thereof shall form part of the costs of the reference.
Rule 57 :
The arbitral tribunal may issue such orders or directions as it
may deem necessary for safeguarding, interim custody, preservation,
protection, storage, sale or disposal of the whole or part of the
subject matter of the dispute or for its inspection or sampling
without prejudice to the rights of the parties or the final
determination of the dispute.
Waiver of Rules
Rule 58 :
Any party who proceeds with the arbitration with the knowledge
that any provision or requirement of these rules has not been
complied with and who fails to state his objection thereto in
writing, shall be deemed to have waived his right to object.
Return of Documents
Rule 59 :
Unless required to be filed in a Court of law, the arbitral
tribunal shall have full discretion to retain/or to return all
books, documents or papers produced before it and may direct at any
time that the books, documents or papers produced before it or any
of them may be returned to the parties producing them on such terms
and conditions as the arbitral tribunal may impose.
Award
Rule 60 :
No award shall be made by the arbitral tribunal unless the case
of the party applying for arbitration has been brought to the
notice of the other party and until after the lapse of such
specified time within which he has been asked to submit his defence
statement under Rule 18.
Rule 61 :
Whenever there is more than one arbitrator, the award of the
majority shall prevail and be taken as the decision of arbitral
tribunal. Failing a majority, the Chairman of the arbitral tribunal
alone shall make the award.
Rule 62 :
Should the parties arrive at a settlement of the dispute by
common agreement before the Arbitral Tribunal and the arbitral
tribunal is satisfied that such agreement is genuine and not to
defeat the purpose of any law, the arbitral tribunal shall render
an award as per agreement of the parties. Otherwise, the arbitral
tribunal shall make the award on the basis of the documents,
evidence, etc. filed before it by the Parties.
Rule 63 :
The arbitral tribunal shall make the award as expeditiously as
possible, preferably within six months according to the Guidelines
from the date of the reference subject to a maximum limit of two
years from the date of commencement of the arbitral proceedings. If
necessary, the maximum limit of two years for making the award be
extended by agreement between the parties to the dispute or by the
Committee.
Rule 64 :
The arbitral award shall state the reasons upon which it is
based, unless:
- the parties have agreed that no reasons are
to be given or
- the award is an arbitral award on agreed
terms.
Rule 65 :
The arbitral award shall state its date and the place of
arbitration and the award shall be deemed to have been made at that
place.
Rule 66 :
The arbitral tribunal may make an interim award, and may, by an
award, determine and order what shall be done by either or any of
the parties, respecting the matters referred.
Rule 67 :
The arbitrators constituting the arbitral tribunal or the
Presiding Arbitrator where Rule 61 is applicable, shall sign the
award and the Registrar shall give notice in writing to the Parties
of the making and signing thereof and of the amount of fees &
charges payable in respect of the arbitration and the award. The
arbitrators fee shall be payable by the Council on receipt of the
award and requisite deposit made by the parties.
Rule 68 :
- When an award has been made, the Registrar
shall furnish a true copy of the award to the parties by registered
post provided the arbitration costs have been fully paid to the
Council by the parties or by one of them.
- The Registrar may require either party to notify him
of the compliance with the award.
- The arbitral tribunal and the Registrar of the Council
shall assist the parties in complying with any formalities that may
be necessary for the enforcement of the award or for other
purposes.
- The Council may print, publish or otherwise circulate
any award made under its rules or under its auspices, in any
arbitration journal, magazine, report, etc, for the purpose of
creating arbitration jurisprudence or precedents for the benefit
and guidance of future arbitrations.
No party to the arbitration shall have any objection to the
publication of awards as above provided that the names and
addresses of any party to the dispute will be omitted from such
publication and its identity duly concealed if so desired by such
party.
Rule 69 :
Additional copies of the award certified true by the Registrar
shall be made available to the parties but to no one else, at all
times at request and on payment as fixed by the Registrar,
Rule 70 :
A party shall in all things abide by and obey the award which
shall be binding on the parties and their respective
representative, notwithstanding the death of any party before or
after the making of the award and such death shall not operate as
revocation of the submission or reference. To avoid delays and
further litigation, the arbitrators/Registrar shall ask the parties
to agree that the award made by the arbitrators/s shall be final
and binding on the parties and neither party shall be entitled to
challenge it in a court of law.
Filing of Award
Rule 71 :
The Arbitral Tribunal shall at the request of any of the parties
to the proceedings or of any person claiming under a party or if so
directed by the court and upon payment of fees and charges due in
respect of the arbitration and award and of the costs and charges
of filing the award, cause the award or a signed copy thereof
together with the deposition or documents which may have been taken
and proved before it to be filed before the court.
Rule 72 :
A fee of Rs. l,000/- plus incidental expenses at actuals in
addition to the court fees, on the scale for the time being in
force is payable by the party requiring the award to be filed.
Stamp Duties
Rule 73 :
Stamp duties are to be paid in all cases in accordance with the
scale of stamp duties for the time being imposed by law.
Copies of Proceedings
Rule 74 :
No party is entitled as of right to copies of proceedings before
the arbitral tribunal. In case the Registrar is required to furnish
copies of depositions and/or documents which have been taken or
proved before the arbitrator, a charge as demanded by the Registrar
shall be paid by the party requiring such copies.
Rule 75 :
The Registrar shall, upon the written request of a party,
furnish to such party at his expense certified facsimile of any
documents filed in the arbitration proceedings.
Cases Withdrawn
Rule 76 :
When the party instituting a case desires to withdraw it before
an arbitral tribunal has been constituted, the Registrar shall
return to him any deposits made by him, under Rule 28, after
deducting such charges as he might have incurred in connection with
the cases. The registration fee, however, shall not be
refundable.
Rule 77 :
If the arbitration is terminated by the act or default of any
parties after constitution of the arbitral tribunal and before the
award is made, any fees, charges and expenses incurred by the
Council shall be paid by the parties in such proportion as per
schedule of fees prescribed in the Rules of Arbitration of the
Council.
Indemnity of Secretariate and Arbitrators
Rule 78 :
The Council, the Arbitration Committee and officers of the
Council shall not be liable for any act or omission in whatever
capacity they may have acted in connection with or in relation to
an arbitration under these Rules. Parties are themselves required
to contest the proceedings regarding the validity of the
arbitration agreement before the court.
Rule 79 :
No party shall bring or prosecute any suit or proceedings
whatever against the arbitral tribunal, or any member thereof, for
or in respect of any matter or thing purporting to be done under
these Rules nor any suit or proceedings in respect thereof (save
for enforcement of the award) against the other party.
Amendment of Rules
Rule 80 :
The Governing Body may revise, amend or alter these rules or the
schedule of fees and other monies to be charged and paid as and
when they think necessary.
Guidelines for Arbitrators and the Parties to arbitration for
expeditious conduct of arbitration proceedings
1. The arbitrators and the parties to arbitration are expected
to follow these guidelines to ensure economic and expeditious
disposal of arbitration cases.
For Arbitrators
2. The arbitrators must take up the arbitration expeditiously on
receipt of the request from the Council and should also complete
the same with reasonable despatch. Serious efforts should be made
to settle arbitration cases expeditiously within a period of 6
months where the amount of claim exceeds 1 crore and within a
period of 4 months where the amount of claim is less than Rs.1
crore.
3. When accepting his mandate, the arbitrator shall be able to
perform his task with the necessary competence according to his
professional qualifications.
4. When giving notice of his acceptance, the arbitrator shall
disclose in writing in the printed format as under:
- any relationship with the parties or their counsel which may
affect his independence and impartiality;
- any personal or economic interest, either direct or indirect,
in the subject matter of the dispute;
- any prejudice or reservation as to the subject matter of the
dispute which may affect his impartiality.
- Where necessary due to supervening facts, this Statement shall
be repeated in the course of the entire arbitral proceedings until
the award is filed.
5. Where facts that should have been disclosed are subsequently
discovered, the arbitrator may either withdraw or be challenged or
the Indian Council of Arbitration may refuse to appoint him in
other arbitral proceedings on this ground.
6. The arbitrator may at all stages suggest the possibility of a
settlement to the parties but may not influence their decision by
indicating that he has already reached a decision on the
dispute.
7. In the course of the arbitral proceedings, the arbitrator
shall refrain from all unilateral contact with the parties or their
counsel which is not notified to the Indian Council of Arbitration
so that the ICA can inform the other parties and arbitrators.
8. The arbitrator shall refrain from giving the parties, either
directly or through their counsel, notice of decisions in the
evidence taking place or on the merits; notice of these decisions
may be given exclusively by the ICA.
9. The arbitrator shall neither request nor accept any direct
arrangement on costs or fees with the party which has designated
him. The arbitrator is entitled to reimbursement of expenses and a
fee as exclusively determined by the ICA according to its Schedule
of Fees, which is deemed to be approved by the arbitrator when
accepting his mandate.
10. The arbitrator shall encourage a serene and positive
development of the arbitral proceedings. In particular, he shall
decide on the date and manner of the hearings in such a way as to
allow both parties to fully participate therein, in compliance with
the principle of equal treatment and adversarial proceedings.
11. The first hearing of the arbitral tribunal should be
convened within 15 days of the receipt of the complete reply of the
respondent when the arbitral tribunal may issue necessary
directions. Admission and denial of the documents may be got done
by the Registrar. Issues if any to be framed, may be done at the
same or at the next hearing. The arbitrators should hold
arbitration hearings continuously on day-to-day basis during office
hours.
12. The parties should be asked to furnish a list of their
witness, if any, in advance and they should be asked to file
affidavits of witness on the date fixed for evidence preferably
within a weeks of the settlement of issues, Cross-examination of
such of the deponent's witnesses whose presence is demanded by the
opposite party should be completed at a hearing to be fixed within
15 days.
13. Arguments preferably should be heard within 15 days of the
completion of evidence, to be followed by submission of written
arguments, if any.
14. Adjournments of duly fixed hearing should not be granted
except for unavoidable reasons which should be spelt out in the
adjournment order.
15. The Arbitrator should make the award expeditiously after the
close of the hearings, preferably within 15 days.
16. The arbitrator who does not comply with the provisions of
these guidelines may be replaced by the Committee. Where it is not
appropriate to replace the arbitrator in order not to cause delay
in the arbitral proceedings, the ICA may also take such action
after the conclusion of the arbitral proceedings, by refusing to
confirm him in subsequent arbitral proceedings.
For Parties
17. The claimant should file the applications or demand for
arbitration to the Registrar of the Council with all the
information and papers as per Rules, full statement of claim and
copies of documents relied upon, in 3 sets in case of a Sole
Arbitrator and in 5 sets in case of three arbitrators
18. The respondent should file his reply to the claim with
complete information and documents relied upon, in 3 or 5 sets as
above as early as possible within the prescribed time. Fresh
documentation/claims should not be entertained at a later stage of
the proceedings unless the arbitral tribunal is satisfied about the
reasons for granting such permission.
19. If any party to arbitration, particularly in cases where any
arbitrator, advocate or any of the parties has to come from out
station to participate in arbitration proceedings, desires to seek
adjournment on any valid ground, it must submit a written request
to the Registrar at least before 5 working days stating the grounds
which compel it to request for postponement of the hearing so that
the Council is in a position to take necessary steps to inform the
Parties, Arbitrators and Advocates regarding postponement of the
hearing. Parties seeking adjournment will have to pay cost as may
be determined by the arbitral tribunal.
20. Parties should deposit arbitration and administrative fees
with the Council (ICA) within the stipulated time, as per the Rules
and no extension should be sought in this behalf except for
compelling reasons.
21. To avoid excessive costs in arbitration proceedings, the
parties are advised to choose their arbitrators from the Panel, as
far as possible from the place where the arbitration hearings have
to be held. In case, a party still chooses an arbitrator from a
place other than the place of hearing, the concerned party will
bear the entire extra cost to be incurred on stay TA/DA etc. of the
arbitrator nominated by it.
For Arbitration Committee
22. The Arbitration Committee of the Council may examine the
arbitration case file, from time to time to evaluate the progress
of the proceedings and to ascertain whether the arbitrators have
granted adjournments only on reasonable grounds.
23. The Arbitration Committee shall be sole judge of the grounds
of violation of the guidelines and its decision shall be final and
binding on the arbitral tribunal as well as the parties.