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CBSE Questions for Class 12 Commerce Legal Studies Arbitration,Tribunal Adjudication And Alternate Dispute Resolution Quiz 4 - MCQExams.com
CBSE
Class 12 Commerce Legal Studies
Arbitration,Tribunal Adjudication And Alternate Dispute Resolution
Quiz 4
An arbitrator _______.
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is chosen and paid by the disputant
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acts in accordance with privately chosen procedure so far as that is not repugnant to public policy
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only (a) is correct
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both (a) and (b) are correct
Explanation
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.
To invoke international commercial arbitration it is necessary that at least one of the parties is ____________.
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a body corporate which is incorporated in any country other than India
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the Government of a foreign country
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an individual who is a national of, or habitually resident in any country other than India
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all of the above
Explanation
Under the Arbitration and Conciliation Act, 1996
Part 1 Arbitration
Chapter I : General Provisions
Section 2: Definitions
Section2(f): "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 for in India and where at least one of the parties is-
an individual who is a national of, or habitually resident in, any country other than India; or
a body corporate which is incorporated in any country other than India; or
a company or any association or a body of individuals whose central management and control is exercised in any country other than India; or
the Government of a foreign country.
Finality to arbitral awards within meaning of section $$35$$ of the Arbitration and Conciliation Act, $$1996$$ shall _______.
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not be binding on parties
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be binding on government authority
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be binding on first party only
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be binding on the parties and person claiming under then respectively
Explanation
It has been provided under Chapter VIII (Finality and enforcement of arbitral awards) of the Part I (Arbitration) of the Arbitration and Conciliation, 1996.
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
A sum directed to be paid by an arbitral award shall carry interest ________.
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$$@ 6\%$$ per annum from the date of the award till the date of payment
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$$@ 12\%$$ per annum from the date of the award till the date of payment
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$$@ 18\%$$ per annum from the date of the award till the date of payment
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$$@ 24\%$$ per annum from the date of the award till the date of payment
Explanation
It is been provided under Section 31 (7) (b) of the Arbitration and Conciliation Act, 1996.
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
An arbitral award ______.
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has to be in writing but need not be signed
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has to be in writing and signed by the members of the arbitral tribunal
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may be oral
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either (a) or (b) or (c)
Explanation
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
Which of the following in the correct statement?
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An arbitral award can be inferred with if it is contrary to the substantive provisions of the Act or against the terms of the contract.
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An arbitral award can be set aside if the arbitral tribunal has not followed the mandatory procedure prescribed under the Act.
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An arbitral award can be set aside if it is contrary to fundamental policy of Indian law, or the interest of India, or justice or morality.
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All of the above
Explanation
Section 34 provides that an arbitral award may be set aside by a court on certain grounds specified therein. Under section 34 of the Act, a party can challenge the arbitral award on the grounds such as the parties to the government are under some incapacity; the agreement is void and many others.
Which one of the following is incorrect statement ?
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An arbitral award is a contract.
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An arbitral award must be in writing and signed.
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An arbitral award includes an interim award.
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None of the above
Explanation
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
After the arbitral award is made, each party shall be delivered _______.
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the original award
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a signed copy of the award
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a photocopy of the award
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an unsigned copy of the award
Explanation
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
An arbitral award ________.
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must state the reasons upon which it is based
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must state the reasons upon which it is based only when the parties have agreed for the same
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need not state the reason upon which it is based
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may state or may not state the reasons upon which it is based as per discretion of the members of the arbitral tribunal
Explanation
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
An arbitral award becomes enforceable when _______.
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the time for making an application for setting aside the arbitral award has expired and no such application has been made
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an application for setting aside the arbitral award has been refused
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either (a) or (b)
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neither (a) nor (b)
Explanation
If the objections to the award are not sustained (or if there are no objections within the time allowed) the award itself becomes enforceable as if it were a decree of the court.
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
An arbitral award shall be enforced in the same manner as if it were a decree of _______.
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local authority
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the court
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the tribunal
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both (b) and (c)
Explanation
According to the Arbitration and Conciliation Act, 1996, an Arbitral Award, shall be in writing, shall be signed by members of Arbitral Tribunal, shall state the reasons on which the Award is based, date and place of arbitration shall be decided. The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each party.
Ad-hoc arbitration can be sought _______________________.
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when the parties involved in commercial transaction choose to incorporate arbitration clause as a part of agreement to refer their future disputes
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when a dispute that arose between the parties to a business transaction could not be settled through mediation or conciliation
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when the parties agree to submit to arbitration 'all or any' differences which have arisen or may arise
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only (b) and (c)
Explanation
Ad hoc Arbitration is a proceeding that is not administered by others and requires parties to make their own arrangements for selection of arbitrators. The parties are under discretion to choose designation of rules, applicable law, procedures and administrative support.
A written statement of the reasons for the challenge to the arbitral tribunal has to be sent within ____________.
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$$15$$ days of becoming aware of the constitution or the reasons
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$$30$$ days of becoming aware of the constitution or the reasons
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$$7$$ days of becoming aware of the constitution or the reasons
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$$60$$ days of becoming aware of the constitution or the reasons
Explanation
The procedure of challenging has been provided by section $$13$$ of the Arbitration and Concilliation Act which says that a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstances referred in section $$12$$, send a written statement of the reasons for the challenge to the arbitral tribunal.
Which is incorrect statement?
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Arbitrator is a person to whom the matters in the dispute are submitted by the parties.
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The Arbitral Tribunal can make the law of it own.
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The Arbitral Tribunal is the creature of an agreement
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Both (B) and (C) are incorrect
Explanation
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.
The arbitral tribunal may arrange for administrative assistance _______.
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with the consent of the parties
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with the consent of the claimant
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without the consent of the parties
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of its own, irrespective of the consent of the parties
Explanation
Under section 6 of the Arbitrations and Conciliation Act, 1996, it has been provided that in order to facilitate the conduct of the arbitral proceedings, the parties or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.
A 'party' within the meaning of section $$2$$ Arbitration & Conciliation Act, $$1996$$ means ______.
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party to the contract
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party to the arbitration agreement
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party to the suit/proceedings
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either (a) or (b) or (c)
Explanation
It has been under the section 2 (1) (h), that a party means a party to the arbitration agreement.
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.
Court under section $$2(1)$$(e), Arbitration and Conciliation Act means ______.
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Court of Small Causes
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Principal Civil Court and Civil Court of an inferior grade
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Principal Civil Court of original jurisdiction
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all of the above
Explanation
Court means 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.
The arbitral tribunal may arrange for administrative assistance by a suitable ______.
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institution
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person
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either institution or person
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neither (a) nor (b)
Explanation
Under section 6 of the Arbitrations and Conciliation Act, 1996, it has been provided that in order to facilitate the conduct of the arbitral proceedings, the parties or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.
Private arbitration is also described as _______.
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integral arbitration
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consensual arbitration
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domestic arbitration
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none of the above
Explanation
Private arbitration is the referral of a dispute to an impartial third person chosen by the parties who agree in advance to be bound by the arbitrator's decision after hearing in which both parties have an opportunity to be heard. It is also known as Consensual arbitration.
Statutory arbitration is ______________________.
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imposed on the parties by operation of law
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a compulsory arbitration
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where consent of the parties is not necessary
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All of the above
Explanation
The dispute which may be the subject of an arbitration agreement need not necessarily arise out of a contract. They may be also arise out of statutory provisions. A reference can be under the provisions Arbitration and Conciliation Act, 1996. The Arbitration Act governs Arbitration in India, including, typically, statutory arbitrations.
The definition of 'Arbitral Tribunal' under the Arbitration and Conciliation Act, $$1996$$ means _______.
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sole arbitrator or a panel of arbitrators
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sole arbitrator only
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panel of arbitrators only
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presiding officer
Explanation
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.
A party shall be precluded from raising the question of jurisdiction of arbitral tribunal _____________.
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where he has appointed the arbitrator
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where he has participated in the appointment of the arbitrator
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both (a) and (b)
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neither (a) nor (b)
Explanation
A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence; however, a party shall not be precluded from raising such a plea merely because that he has appointed, or participated in the appointment of, an arbitrator. Therefore the party shall not be precluded from raising the question of jurisdiction of arbitral tribunal.
The expression 'International Commercial Arbitration' has been defined in ______________.
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Section $$2(1)$$(e)
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Section $$2(1)$$(g)
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Section $$2(1)$$(f)
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None of the above
Explanation
Under The Arbitration and Conciliation Act, 1996
Chapter I: General Provisions
Section 2: Definitions
Under Section 2(1)(f) : " International commercial arbitration" means and arbitration relating to dispute arising out of legal relationships, whether contractual or not, considered as commercial under the law in for in India and where at least one of the parties is-
an individual who is a national of, or habitually resident in, any country other than India; or
a body corporate which is incorporated in any country other than India; or
a company or any association or a body of individuals whose central management and control is exercised in any country other than India; or
the Government of a foreign country.
Under section $$7$$, Arbitration and Conciliation Act, $$1996$$, an arbitration agreement ________.
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shall be in writing
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may be oral
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either in writing or oral
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neither in writing nor oral
Explanation
Under The Arbitration and Conciliation Act, 1996
Chapter II : Arbitration Agreement
Section 7(3): An arbitration agreement shall be in writing.
Section 7(4): An arbitration agreement is in writing if it is contained in-
a document signed by the parties;
an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or
an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
The members of Statutory Arbitral Tribunals are appointed by __________.
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parties themselves
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state
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centre
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None of the above
Explanation
Apart from the courts in India, there are various quasi-judicial bodies for dispute resolution created by a statute and are commonly known as statutory tribunals
Tribunals are established as per appropriate statutory provisions and are observed as an alternative medium to the conventional judicial bodies for the redressal of grievances and settling disputes.
A tribunal shall consist of a chairman and such number of vice-chairman and another member as may be provided for. The President appoints them in case of central tribunals and the Governor in case of the state tribunals.
During the arbitral proceedings the arbitral tribunal ___________.
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can make interim award
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may require a party to provide appropriate security
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both (a) and (b)
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either (a) or (b)
Explanation
Under Arbitration and Conciliation Act, 1996
Section 17: interim measures ordered by arbitral tribunal.
Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order a party to take any interim measure of protection as the arbitral tribunal may consider necessary in the respect of the subject matter of the dispute.
The arbitral tribunal may require a party to provide appropriate security in connection with a measure ordered under sub-section (1).
The arbitral tribunal has the jurisdiction to _______.
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award interest on the whole or part of the money
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award interest on the whole of the money Only
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award interest on part of the money only
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either (b) or (c)
The arbitral tribunal has the jurisdiction to rule ______.
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on its own jurisdiction
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on objections as to the existence of the arbitration agreement
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on objection as to the validity of the arbitration agreement
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all of the above
Explanation
Section 16 (1) of the Arbitration and Conciliation Act states that the Arbitral Tribunal may rule on its own jurisdiction, including ruling on any objection with respect to the existence or validity of the arbitration agreement. Under this section, the Arbitral Tribunal has been granted the power to make a ruling on its own jurisdiction.
The expression 'Arbitration agreement' under section $$7$$ of Arbitration and Conciliation Act, $$1996$$ means ______.
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any agreement which have arisen under the Arbitration Act of $$1940$$
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any agreement to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, contractual or not
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any agreement to submit to arbitration certain disputes of civil nature
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any agreement to submit to arbitration certain disputes of criminal nature
Explanation
An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. It shall be in writing. An arbitration agreement is in writing if it were contained in a document signed by the parties; an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
The arbitrator in case of international commercial arbitration is appointed by ___________.
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parties themselves
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Attorney - General of India
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Chief Justice of India
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Judge of the Supreme Court
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both (a) and (c)
Explanation
The procedure in relation to appointment of arbitrators is provided under Section
11
of the Act. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties. The section also deals with the contingency wherein the parties fail to appoint an arbitrator mutually. In such a situation, the appointment shall be made, upon request of a party, by the Supreme Court or any person or institution designated by such Court, in the case of an International Commercial Arbitration or by High Court or any person or institution designated by such Court, in case of a domestic arbitration.
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