Arbitration And Conciliation Act MCQ Quiz in বাংলা - Objective Question with Answer for Arbitration And Conciliation Act - বিনামূল্যে ডাউনলোড করুন [PDF]

The correct answer is option 2: "Is not condonable."

Key Points

•  The Arbitration & Conciliation Act stipulates a strict timeline for challenging an arbitral award. The time limit for setting aside an arbitral award is three months, with a possible extension of thirty days on showing sufficient cause. Beyond this period of three months plus thirty days (total of 120 days), the Act does not allow for any further extension.
• Section 5 of the Limitation Act, 1963, which allows for the condonation of delay in certain cases, does not apply to the setting aside of arbitral awards as per the Arbitration & Conciliation Act.
• Therefore, a delay of 105 days beyond the prescribed time (i.e., beyond 120 days) in applying for setting aside an arbitral award is not condonable.

Additional Information

• Limitation Act, 1963: This Act governs the time limits for various legal actions in India. However, its provisions are not applicable in certain specific scenarios, including the timeline for challenging arbitral awards under the Arbitration & Conciliation Act.
• The strict adherence to the timeline in arbitration matters underscores the emphasis on efficiency and finality in arbitration proceedings.

Important Points It is crucial to remember that the timelines prescribed under the Arbitration & Conciliation Act are stringent and are designed to ensure the expeditious resolution of disputes through arbitration.

This question illustrates the strict nature of the time limits under the Arbitration & Conciliation Act for challenging arbitral awards, highlighting that delays beyond the specified period are generally not condonable

The correct answer is 'OPTION 4.'

Key Points

• Section 9 of the Arbitration and Conciliation Act:
  • Section 9 of the Arbitration and Conciliation Act, 1996, allows a party to apply to the Court for interim measures of protection before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced.
  • Interim measures can include orders for the preservation of goods, securing the amount in dispute, or any other necessary measures for protecting the interests of the parties involved in arbitration.
  • This provision is crucial for ensuring that the subject matter of the arbitration is preserved and that the parties’ rights are protected while the arbitration process is ongoing.

Additional Information

• Section 8:
  • Section 8 deals with the power of the judicial authority to refer parties to arbitration when an action is brought before it in a matter which is the subject of an arbitration agreement. It does not concern interim measures.
• Section 7:
  • Section 7 defines what constitutes an arbitration agreement and the requirements for such an agreement. It does not provide for interim measures.
• Section 12:
  • Section 12 addresses the grounds for challenging the appointment of an arbitrator, particularly regarding their independence and impartiality. It is unrelated to interim measures.

The correct answer is option 3

Key Points As per Section 34(3) of the Arbitration and Conciliation Act, 1996, an application for setting aside an arbitral award must be made within three months from:

• The date on which the party receives the arbitral award, OR
• If a request under Section 33 (for correction/interpretation of the award) has been made, then from the date on which that request is disposed of by the arbitral tribunal.
• Additionally, the court may extend this period by a maximum of 30 days if the applicant can show sufficient cause for the delay.

Correct answer is option 2

Key Points

• A party seeking to refer a matter to arbitration must make their application to the judicial authority no later than the date of submitting their first statement on the substance of the dispute. This ensures that the request for arbitration is made at an early stage.

• The application must be accompanied by the original arbitration agreement or a duly certified copy of it. If the original or certified copy is held by the other party, the applicant can submit a copy of the agreement along with a petition requesting the court to compel the other party to produce the original or certified copy.

• Even if an application for referral to arbitration is pending before the judicial authority, the arbitration process can commence, continue, and an arbitral award can be made. This provision ensures that the arbitration process is not unduly delayed by the court proceedings

Correct answer is option 2

 Key Points

Option 2 accurately reflects the provisions related to the time limits for making an arbitral award, the termination of the arbitrator’s mandate, and the potential reduction in fees due to delay. 

• The arbitral award must be made within twelve months from the date the arbitral tribunal enters upon the reference. This date is considered to be the date on which the arbitrator(s) receive notice of their appointment.

• If the award is made within six months from the date the tribunal enters upon the reference, the tribunal may be entitled to additional fees as agreed by the parties.

• The parties can extend the initial twelve-month period for making the award for an additional period not exceeding six months by mutual consent.

• If the award is not made within the specified period or any extended period, the mandate of the arbitrator(s) will terminate unless the Court extends the period. The Court may also reduce the fees of the arbitrator(s) by up to five percent for each month of delay attributable to the tribunal.
• Extensions may be granted by the Court only for sufficient cause and on terms and conditions it deems appropriate.

• The Court has the authority to substitute one or all of the arbitrators during the extension period. The proceedings will continue from the stage already reached, based on the existing evidence and material. The reconstituted tribunal is considered to be a continuation of the original tribunal.

• The Court can impose actual or exemplary costs upon any party. Applications for extension of time should be disposed of as expeditiously as possible, ideally within sixty days from the date of notice to the opposing party.

Correct  answer is option 1

Key Points Option 1 is correct because it accurately reflects that the proceedings can be terminated if the claimant withdraws the claim, provided that the respondent does not object or has no legitimate interest in continuing the dispute.

• Arbitral proceedings are terminated either by a final arbitral award or by an order of the arbitral tribunal under certain conditions specified in Sub-section (2).

• Withdrawal of Claim (Sub-section 2(a)): The proceedings may be terminated if the claimant withdraws their claim, unless the respondent objects and demonstrates a legitimate interest in obtaining a final settlement of the dispute.

• The parties may agree to terminate the proceedings.

• The arbitral tribunal can terminate the proceedings if it finds that continuing the arbitration has become unnecessary or impossible for any other reason.

• The mandate of the arbitral tribunal ends with the termination of the arbitral proceedings, subject to provisions under Section 33 and sub-section (4) of Section 34.

Correct answer is option 3

Key Points Option 3 is correct because it accurately describes that the filing of an application to set aside the award does not make it automatically unenforceable. Instead, the award remains enforceable unless the Court grants a specific stay of its operation based on a separate application.

Solution:

Section 36 of "The Arbitration and Conciliation Act, 1996" addresses the enforcement of arbitral awards and the conditions under which such enforcement may be affected.

1. Enforcement After Time Expiry (Sub-section 1):
   • Once the time limit for filing an application to set aside the arbitral award under Section 34 has expired, the award shall be enforced in the same manner as a court decree, according to the Code of Civil Procedure, 1908.
2. Effect of Filing an Application to Set Aside (Sub-section 2):
   • Filing an application to set aside the arbitral award under Section 34 does not automatically render the award unenforceable. The award remains enforceable unless the Court specifically grants an order to stay its operation.
3. Application for Stay (Sub-section 3):
   • If an application for stay of the arbitral award is filed, the Court may grant a stay subject to conditions it deems appropriate. The Court must record its reasons for granting the stay in writing. In cases involving monetary awards, the Court will consider the provisions for staying a money decree as per the Code of Civil Procedure, 1908.

The correct answer is option 3.Key Points

• Chapter 9 of the Arbitration and Conciliation Act, 1996 deals with Appeals.
• Section 37 of the Arbitration and Conciliation Act, 1996 deals with Appealable orders.
• (1) An appeal shall lie from the following orders (and from no others) to the Court authorised by law to hear appeals from original decrees of the Court passing the order, namely:—
  • (a) Refusing to refer the parties to arbitration under section 8;
  • (b) Granting or refusing to grant any measure under section 9;
  • (c) Setting aside or refusing to set aside an arbitral award under section 34.
• (2) Appeal shall also lie to a court from an order of the arbitral tribunal:
  • (a) Accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; or
  • (b) Granting or refusing to grant an interim measure under section 17.
• (3) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away any right to appeal to the Supreme Court..

The correct answer is option 3.Key Points

•  Section 2 Under the Arbitration and Conciliation Act, 1996 deals with Definitions and in 2(e) “Court” means:
  • (i) In the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes;
  • (ii) In the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;.

The correct answer is option 2Key Points

• Section 9 of Arbitration and Conciliation Act, 1996 deals with Interim measures, etc., by Court.—
• (1) 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 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:
    • (a) 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;
    • (c) 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 any 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;
    • (d) Interim injunction or the appointment of a receiver;
    • (e) Such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.
• (2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine.