Under section $$32$$, the principle of res judicata is applicable in:

a case having reference to an arbitral Tribunal

interim award made by the arbitral Tribunal

The expression 'costs' under section $$31$$ means reasonable costs relating to:

fees and expenses of the arbitrators

administration fees of the institution supervising the arbitration

Section $$38$$ deals with:

fixation of the costs of an arbitration

Under section $$34$$, misconduct in proceeding means:

proceeding ex prlrte without sufficient cause

Under section $$48$$, 'contrary to public policy of 'India' connotes _______________.

fundamental policy of Indian Law

Section $$48$$ lays down the provisions for:

conditions for enforcement of foreign awards

power of judicial authority to refer parties to arbitration

binding effect of foreign award

Section $$41$$ deals with:

provision in case of insolvency

MCQ Questions for Class 12 Commerce Legal Studies Arbitration,Tribunal Adjudication And Alternate Dispute Resolution Quiz 1

Legal phrases are followed by four meanings. Choose the most appropriate option:
'Animus possidendi' means:

0%
Intent to contract
0%
Intention to harm
0%
Intention to return
0%
Intention to possess.

The pendency of any arbitral 'proceeding is not a pre-condition in exercise of power by court. The court may grant interim relief before or during arbitral proceedings or at anytime after making of the arbitral award before it is enforces. It was held in case of

0%
Om Prakash v. State of Littar Pradesh, AIR $2010$ Uttra $64$
0%
Global Co-generation Power Ltd. v. Shri Hirenyakeshi Sahkari Karkhana Niyamit, AIR $2005$ Kant $94$
0%
MCD v. Pradeep Oil Mills Pvt. "Ltd., AIR $2010$ Del $119$
0%
none of the above

Which one of the following is the most important item of expenditure of the Government of India on revenue account?

0%
Defence
0%
Subsidies
0%
Pensions
0%
Interest payments

The request for the correction or interpretation of the award by the arbitral Tribunal has to be made by the party:

0%
within sixty days
0%
within thirty days
0%
within ninety days
0%
none of the above

Which article of the Constitution of India authorises the government to enter into an arbitration agreement:

0%
Art. $235$
0%
Art. $299$
0%
Art. $39$
0%
both (a) and (c)

From which source does money flow into the Consolidated Fund of India?

0%
Revenues
0%
Fresh loans
0%
Repayment of loans
0%
All the above

Which statement is incorrect?

0%
Arbitration agreement is a kind of contract.
0%
Parties to the arbitration must be legal persons.
0%
Arbitration agreement recognises verbal agreement.
0%
Both (B) and (C) are incorrect

The provision of section

8

$8$ , Arbitration and Conciliation Act,

1996

$1996$ are ________________.

0%
pre-emptory
0%
directory
0%
discretionary
0%
optional

Explanation

The term 'pre-emptory' means not open to appeal and is final. 'Directory' means the provision is directing to do so and 'Discretionary' means based on the freedom to decide. Section

8

$8$ of the Arbitration and Conciliation Act,

1996

$1996$ talks about power to refer parties to arbitration where there is arbitration agreement. This means it is peremptory in nature. It provides that a judicial authority shall, on the basis of the arbitration agreement between the parties, direct the parties to go for arbitration.

The validity of an arbitration agreement does not depend on the number of arbitrators specified therein, as the Act does not suggest the requirement of the number of arbitrators for an arbitration agreement: this was laid down in _____________.

0%
Orma Impex Pvt. Ltd. v. Nissuri Arb. Pte Ltd., AIR $1999$ SC $2871$
0%
Olympus Super Structures Pvt. Ltd. v. Meena Vijay Khetan, AIR $1999$ SC $2102$
0%
M.M.T.C. Ltd. v. Sterlite Industries(India) Ltd., AIR $1997$ SC $605$
0%
None of the above

Explanation

An arbitration agreement, according to Section

7

$7$ of the Arbitration and Conciliation Act,

1996

$1996$ , means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. It can either be a part of an agreement or in form of a separate arbitration agreement.

The validity of an arbitration agreement was challenged before the Supreme Court in the case of MMTC Ltd. v. Sterlite Industries (India) Ltd. on the grounds that arbitration clause could not be resorted to and invalid in the light of section 10 of the Act which provides that the parties are free to determine the number of arbitrators provided that such number shall not be even number.The Supreme Court rejected the plea and held that the relevant provision to determine the validity of the arbitration agreement in section $$7$$, which contains the writing requirement, and that there is no reference to number of arbitrators within this provision, that the validity of the arbitration clause does not depend on the number of arbitrators specified therein, and that the arbitration clause was valid.

Which is correct statement?

0%
Institutional arbitration has its own set of rules.
0%
Indian Council of Arbitration is the apex body.
0%
The rules may provide for domestic or international arbitration or for both.
0%
All of the above

Explanation

1.An institutional arbitration is one in which a specialized institution with a permanent character intervenes and assumes the functions of aiding and administering the arbitral process, as provided by the rules of that institution. It is pertinent to note that these institutions do not arbitrate the dispute, it is the arbitrators who arbitrate, and only the rules of the institution apply.

2.The Indian Council of Arbitration was established in the year

1965

$1965$ as an apex arbitral organ at the national level to promote the amicable and quick settlement of industrial and trade disputes by arbitration. The Government of India, the Federation of Indian Chambers of Commerce and Industry, the other important Chambers of Commerce and trade associations in India as well as export promotion councils, public sector undertakings, companies and firms are in its membership.

3.The rules of arbitration does provide for domestic and international commercial arbitration or both which is governed by the provisions of Arbitration and Conciliation Act,

1996

$1996$ .

The appointment of arbitrator/arbitrators, can be made _______________.

0%
by the parties
0%
by designated authority
0%
by arbitral institution
0%
Either (a) or (b) or (c)

Explanation

Appointment of arbitrators under Arbitration Act,

1996

$1996$ has been provided under Section

11

$11$ of the act. Under this section, parties are free to agree on a procedure for appointing the arbitrator or arbitrators. If the parties fail to appoint any arbitrator by agreement, the arbitration will be with three arbitrators where each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. If the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made, upon request of a party, by the Chief Justice or any person or institution designated by him or by an arbitral institution.

Section

12 (3)

$12(3)$ provides the ground for challenging to the arbitrator when ___________.

0%
he is not independent or impartial
0%
he is a foreign national
0%
he is not qualified as per agreement between the parties
0%
Both (a) and (c)

Under section

32

$32$ , the principle of res judicata is applicable in:

0%
a case having reference to an arbitral Tribunal
0%
a suit in a court of law
0%
interim award made by the arbitral Tribunal
0%
only (a) and (b)

An arbitral award may be set aside by the court if:

0%
the arbitral award is in conflict with the public policy of India
0%
the subject matter of dispute is not capable of settlement by arbitration under the law for the time being in force
0%
both (a) and (b) are incorrect
0%
both (a) and (b) are correct

Section

34

$34$ of

1996

$1996$ Act is analogous to:

0%
section $30$ of $1940$ Act
0%
section $28$ of $1940$ Act
0%
section $32$ of $1940$ Act
0%
none of the above

The Arbitral Tribunal shall rule _______________.

0%
at the direction of court
0%
on its own discretion
0%
at the instruction of parties
0%
as per provisions of General Clauses Act, $1897$ :

Explanation

The Arbitral Tribunal is constituted on agreement between the parties but the tribunal has been given power under section

16

$16$ of the Act to rule on its own discretion 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 the contract and a decision by the arbitral tribunal that the contract is null and void shall not entail the invalidity of the arbitration clause.

In an arbitration by three arbitrators where the parties fail to agree upon appointment of arbitrators, under section

11

$11$ , Arbitration and Conciliation Act,

1996

$1996$ .

0%
each party shall appoint one, and the two appointed arbitrators shall appoint the third arbitrator
0%
the claimant shall appoint two arbitrators and the disputant shall appoint one
0%
the disputant shall appoint two arbitrators and the claimant shall appoint one
0%
all the three, to be appointed by the Court

The expression 'costs' under section

31

$31$ means reasonable costs relating to:

0%
fees and expenses of the arbitrators
0%
administration fees of the institution supervising the arbitration
0%
only (a)
0%
both (a) and (b)

The arbitral tribunal may by order terminate the arbitral proceedings _______________.

0%
when parties have mutually agreed to seek termination of arbitral proceedings
0%
when the claimant withdraws his disputed case and which is not objected by the respondent
0%
when the arbitral Tribunal thinks it is impossible to continue proceedings
0%
all of the above

Explanation

The arbitral tribunal can order to terminate the arbitral on the circumstances specified under section

32

$32$ of the Act. These include:

(a) the claimant withdraws his claim, unless 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,

(b) the parties agree on the termination of the proceedings, or

(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.

The delay in making an application for setting aside the arbitral award under section

34

$34$

0%
cannot be condoned
0%
can be condoned for a maximum period of $30$ days
0%
can be condoned for a maximum period of $60$ days
0%
can be condoned for a maximum period of $90$ days

Section

53

$53$ talks about the arbitration agreement:

0%
in general
0%
in specific
0%
in simpliciter
0%
none of the above

Section

39

$39$ deals with:

0%
costs of arbitration
0%
fees for the arbitrators
0%
unpaid costs of arbitration
0%
none of the above

Section

38

$38$ deals with:

0%
unpaid costs of arbitration
0%
fixation of the costs of an arbitration
0%
both (a) and (b)
0%
none of the above

Under section

34

$34$ , misconduct in proceeding means:

0%
proceeding ex prlrte without sufficient cause
0%
improper rejection of evidence
0%
both (a) and (b)
0%
only (a)

The expression 'foreign award' is defined under:

0%
section $41$
0%
section $42$
0%
section $44$
0%
section $40$

Under section

48

$48$ , 'contrary to public policy of 'India' connotes _______________.

0%
interests of India
0%
justice or morality
0%
fundamental policy of Indian Law
0%
all of the above

Part II of the Act deals with _____________.

0%
New York Convention awards
0%
Concilliation
0%
None of the above
0%
both (A) and (B)

Delay in making an application for setting aside the arbitral award

0%
can be condoned under section $5$ of Limitation Act
0%
cannot be condoned by invoking section $5$ of Limitation Act
0%
may be condoned under section $5$ of Limitation Act as per discretion of the Court
0%
only (a) and not (b) or (c)

Section

48

$48$ lays down the provisions for:

0%
foreign award
0%
power of judicial authority to refer parties to arbitration
0%
binding effect of foreign award
0%
conditions for enforcement of foreign awards

Explanation

Section 48 of the Arbitration and Conciliation act, 1996, provides for conditions required for the enforcement of foreign award. The conditions include:

A foreign award may not be enforced in India if it is proved by the party against whom it is sought to be enforced that:

the parties to the agreement were under some incapacity to perform under the law to which they were subjected to and in the absence of any mention of such law, the law of the country where the award was made, i.e. the place of arbitration, or,
the agreement was invalid under the law to which the parties have subjected it and in the absence of any mention of such law, the law of the country where the award was made, or,
a fair trial was not conducted by the tribunal passing the award by failing to adhere to the principles of fair hearing, or,
the award passed was partly or wholly beyond the scope of the arbitration agreement, in which case the part of the award exceeding the scope of submission to arbitration may be separated from rest of the award, or,
the composition of the arbitral tribunal or authority and/or the procedure of its appointment was not in accordance with the arbitration agreement or in the absence of any mention of the same in the agreement, it was not in accordance with the law of the country where the arbitration proceedings were held, i.e. the place of arbitration, or,
the award has not yet been made binding on the parties or has been set aside or suspended by a competent authority of the country which is either the place or seat of arbitration.
the settlement of the award is not as per Indian arbitration laws, or the enforcement of the award is contrary to the public policy of India.
An award is said to be in conflict with the public policy of India if it has been affected by fraud or corruption; or it was in violation of the of the Act; or it was in contravention with the fundamental policy of Indian law or basic principles of morality or justice.

Section

41

$41$ deals with:

0%
provision in case of insolvency
0%
provision in case of death
0%
provision in case of minor
0%
none of the above

CBSE Questions for Class 12 Commerce Legal Studies Arbitration,Tribunal Adjudication And Alternate Dispute Resolution Quiz 1 - MCQExams.com

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Practice Class 12 Commerce Legal Studies Quiz Questions and Answers

CBSE Questions for Class 12 Commerce Legal Studies Arbitration,Tribunal Adjudication And Alternate Dispute Resolution Quiz 1 - MCQExams.com

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