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Arbitration, Tribunal Adjudication and Alternate Dispute Resolution Test 17

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Arbitration, Tribunal Adjudication and Alternate Dispute Resolution Test 17
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  • Question 1
    1 / -0
    The mandate of an arbitrator shall terminate if ______________________.
    Solution
    As per section 14(1) of the act the mandate of an arbitrator shall terminate if-
    • He becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay; and
    • He withdraws from his office or the parties agree to the termination of his mandate. 
  • Question 2
    1 / -0
    What is the meaning of Lokyukta ?
    Solution
    The Lokayukta is an anti-corruption ombudsman organization in the Indian states. Once appointed, Lokayukta can not be dismissed nor transferred by the government, and can only be removed by passing an impeachment motion by the state assembly. The term Lokayukta comes from a Sanskrit term which means "appointed by the people". 
  • Question 3
    1 / -0
    If one party is Indian Company and another is American company and the dispute arises out of legal relationship under contract entered between them, then such dispute falls __________.
    Solution
    According to section 2(f) of the act, “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 in corporate 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; 
  • Question 4
    1 / -0
    Before the enactment of Arbitration and Conciliation Act, $$1996$$ which Act has been applicable in India for the arbitration procedure?
    Solution
    The Arbitration Act of 1940 was based upon the English Arbitration Act of 1934 which prevailed in the British. The Arbitration Act of 1940 has been replaced by the Arbitration Act of 1996. The Arbitration Act of 1996 is based upon the UNCITRAL. 
  • Question 5
    1 / -0
    The Arbitrator in respect of escalation cost __________.
    Solution
    Cost escalation is an increase or decrease in the cost of an product, service or commodity over time. Cost escalation is specific to a particular type of cost as opposed to the economy as a whole. In case if escalation cost is subject matter of the arbitration, the arbitrator has jurisdiction to proceed inherently.

  • Question 6
    1 / -0
    What is the meaning of Lokpal ?
    Solution
    A Lokpal is an anti-corruption authority or ombudsman who represents the public interest. The concept of an ombudsman is borrowed from Sweden. The Lokpal has jurisdiction over all Members of Parliament and central government employees in cases of corruption. The term Lokpal comes from Sanskrit term which means "caretaker of people".
  • Question 7
    1 / -0
    Bar of non-registration of Firm under section $$69$$ of Partnership Act, does not affect maintainability of petition under __________.
    Solution
    Section 9 of the Arbitration and Conciliation Act, 1996 provides for the application or petition for an interim measures before the court. It says that a party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced apply to a court: -
    • For the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings; or
    • 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,

  • Question 8
    1 / -0
    The party applying for the enforcement of a foreign award shall, at any time of the application, produce before the court _____________.
    Solution
    As per section 47 of the Act, the party applying for the enforcement of a foreign award shall produce the following documents before the court at the time of application:
    (a) The original award or a copy thereof, duly authenticated in the manner required by the law of the country in which it was made;
    (b) The original agreement for arbitration or a duly certified copy thereof, and
    (c) Such evidence as may be necessary to prove that the award is a foreign award.
    Hence, D is the correct option.
  • Question 9
    1 / -0
    Conciliation is governed by _____________ of Civil Procedure Code.
    Solution
    Section 89 of the Code of Civil Procedure, 1908 embodies the legislative mandate to the court to refer sub judice disputes to various ADR mechanisms enunciated therein where it finds it appropriate to do so, in order to enable the parties to finally resolve their pending cases through well established dispute resolution methods other than litigation. It states that where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observations and after receiving the observations of the parties, the Court may re-formulate the terms of a possible settlement and refer the same for-
    (a) arbitration;
    (b) conciliation;
    (c) judicial settlement including settlement through Lok Adalat; or
    (d) mediation.
  • Question 10
    1 / -0
    A provision for conciliation was inserted in Civil Procedure Code in the year _____________.
    Solution
    Section 89 of the Code of Civil Procedure, 1908 embodies the legislative mandate to the court to refer sub judice disputes to various ADR mechanisms enunciated therein where it finds it appropriate to do so, in order to enable the parties to finally resolve their pending cases through well established dispute resolution methods other than litigation.  The provision for conciliation was added to the CPC after amendment in the year 2002.
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