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CBSE Questions for Class 12 Commerce Legal Studies Arbitration,Tribunal Adjudication And Alternate Dispute Resolution Quiz 6 - MCQExams.com
CBSE
Class 12 Commerce Legal Studies
Arbitration,Tribunal Adjudication And Alternate Dispute Resolution
Quiz 6
Where the challenge to the arbitrator is not successful _______________________.
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the arbitral Tribunal shall stay the proceedings giving opportunity to the party to take appropriate legal proceedings against the order
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the arbitral Tribunal shall continue the arbitral proceedings but shall not make an arbitral award till the disposal of proceedings, if any, initiated by the party challenging the arbitration against the said order
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the arbitral Tribunal shall continue the arbitral proceedings and made the award
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the arbitral Tribunal shall continue the proceedings only with the consent of the party who has challenged the arbitrator
Explanation
As per section 13 (4) of the Act, if a challenge to the arbitrator under any procedure agreed upon by the parties
is not successful, the arbitral tribunal shall
continue the arbitral proceedings and make an arbitral award.
Under section $$11$$ of Arbitration and Conciliation Act, $$1996$$, an arbitrator can be _____________.
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a person or a arbitrator of any previous disputes
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a person of concerned State
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a person of Indian origin only
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a person of any nationality
Explanation
Under The Arbitration and Conciliation Act, 1996
Section 11: Appointment of arbitrators.
1. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.
Section $$13$$ of Arbitration and Conciliation Act, $$1996$$ lays down ________________.
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the termination of mandate of arbitrator
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the procedure for challenging an arbitration
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powers of arbitral tribunal
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none of the above
Explanation
Section $$13$$ of the Arbitration and Conciliation Act, $$1996$$ provides for the procedure for challenging the arbitration where parties are free to agree upon a procedure for challenging an arbitrator or in case of no agreement, 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 or grounds under section $$12$$, send a written statement of the reasons for the challenge to the arbitral tribunal.
Section $$43$$ deals with:
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jurisdiction
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limitation
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finality of arbitral award
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none of the above
Explanation
Section 43 of the Act is the limiting provision of the act which says that the Limitation Act, 1963, shall apply to arbitrations as it
applies to proceedings in court.
An application for setting aside an arbitral award must be made by the party after receiving the award within:
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three months
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thirty days
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ninety days
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forty days
Explanation
Section 34(3) of the Arbitration Act, 1996, provides for limitation period for filing application for setting aside award and says that an application for setting aside an arbitral award must be made within 3 months of receiving the award or disposition of application by the arbitral tribunal.
Which of the following is incorrect statement?
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Conciliation is a process where one party of dispute initiates and other party assents to adopt
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Conciliation is a method of settlement
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Conciliation applied to contractual dispute only
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None of the above
Explanation
Conciliation is one of the non binding procedures where an impartial third party, known as the conciliator, assist the parties to a dispute in reaching a mutually agreed settlement of the dispute. As per Part III of the act, the process of conciliation extends whether contractual or not. But the disputes must arise out of the legal relationship. It means that the dispute must be such as to give one party the right to sue and to the other party the liability to be sued.
Hence, C is the correct option.
The enforcement of a foreign award may be refused if ______________.
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the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator
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enforcement of the award would be contrary to the public policy of India
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none of the above
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both (A) and (B)
Explanation
As per Section 48 of the act, enforcement of a foreign award may be refused, at the request of the party
against whom it is invoked, only if that party furnishes to the court proof
that
the party against whom the award is invoked was not given proper
notice of the appointment of the arbitrator or of the arbitral
proceedings or was otherwise unable to present his case.
Further
enforcement of an arbitral award may also be refused if the court finds
that the enforcement of the award would be contrary to the public
policy of India.
Hence, D is the correct option.
Section $$53$$ of the Arbitration and Conciliation Act, 1996 has limited application because ____________.
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it applies to the jurisdiction of different parties to the New York Convention
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it applies to the jurisdiction of different parties to the Geneva Convention
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it applied to the jurisdiction of domestic land
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none of the above
Explanation
Chapter II of Part II of the Arbitration Act, 1996 deals with foreign awards as per the Geneva Convention. Sections 53-60 of the Arbitration and Conciliation Act, 1996 contains provisions relating to foreign awards passed under the Geneva Convention.
As per section 53 of the act and the Geneva Convention, "foreign award" means an arbitral award on differences relating to matters considered as commercial under the law in force in India made after the 28th day of July, 1924.
Foreign award' implies _______________.
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where one of the parties is foreign national
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where the award is made in foreign country
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where subject matter deals with international trade
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All of the above
Explanation
D is the correct option.
The essential elements of foreign
arbitration, resulting in the foreign arbitral award are as follows:
a. Arbitration should have been held in foreign lands;
b. by foreign arbiters;
c. An arbitral award is made in a foreign country;
d. As a party foreign national is involved.
e. Where the subject matter is international trade and commerce.
Part I of the Act deals with ____________.
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Domestic Arbitration
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New York Convention awards
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UNCITRAL
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None of the above
Explanation
Arbitration and Conciliation Act 1996 has been divided into three parts. Part I of the Act deals with Domestic Arbitration in general whereas Part II of the Arbitration and Conciliation Act, 1996 deals with execution of certain foreign awards which includes New York Convention Awards as well as Geneva Convention Awards. Conciliation on the other hand is dealt with part III of the Act.
Foreign award under section $$44$$ means ___________.
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that the award must have been made on or after $$11$$th day of October $$1960$$
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that the award must have been made after $$28$$th day of July $$1924$$
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that the award must have been made on or after $$12$$th day of December $$1971$$
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none of the above
Explanation
Under section 44 of the Act, “foreign
award” means an arbitral award on differences between persons arising out of
legal relationships, whether contractual or not, considered as commercial under
the law in force in India, made on or after the 11th day of October, 1960.
The conciliation proceedings shall be terminated ______________.
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by signing of the settlement agreement by the parties, on the date of agreement
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by written declaration of the parties and the conciliator to terminate the conciliation proceedings on the date of declaration
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by written declaration of the parties addressed to the conciliator to the effect that conciliation proceedings are terminated, on the date of declaration
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All of the above
Explanation
D is the correct option.
Under section 76 of the act, ways of terminating the conciliation proceedings have been provided. It says that the conciliation proceedings shall be
terminated:
By the signing of the settlement agreement by the parties on the date of the
agreement; or
By a written declaration of the conciliator, after consultation with the
parties, to the effect that further efforts at conciliation are no longer
justified, on the date of the declaration; or
By a written declaration of the parties addressed to the conciliator to the
effect that the conciliation proceedings are terminated, on the date of the
declaration; or
By a written declaration of a party to the other party and the conciliator, if
appointed, to the effect that the conciliation proceedings are terminated, on
the date of the declaration.
After the settlement agreement is reached between the parties to conciliation ________________.
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the conciliator makes an award stating the reasons thereof
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the conciliator shall authenticate the settlement agreement and furnish a copy thereof
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the conciliator shall refer the matter to the tribunal
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None of the above
Explanation
As per section 73 (4) of the act, after the settlement has been reached between the parties, the conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties.
Hence, B is the correct option.
The evidence which is inadmissible under section $$81$$ is _____________.
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admissions made by other party in the course of the conciliation proceedings
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proposals made by the conciliator
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views expressed by the conciliator in course of conciliation proceedings
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All of the above
Explanation
D is the correct option.
Under section 81 of the act there are certain kinds of evidence which are inadmissible which include:
Views expressed or suggestions made by the other party in respect of a
possible settlement of the dispute;
Admissions made by the other party in the course of the conciliation
proceedings;
Proposals made by the conciliator;
The fact that the other party had indicated his willingness to accept a
proposal for settlement made by the conciliator.
Section $$73$$ lays down the provisions for ______________.
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costs
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termination of conciliation proceedings
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confidentially
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settlement agreement
Explanation
D is the correct option.
Settlement agreement after conciliation proceedings is drawn by conciliator(s), when he finds elements of settlement agreement in the matter. This has been provided under section 73 of the act which says that:
When it appears to the conciliator that there exist elements of a settlement,
which may be acceptable to the parties, he shall formulate the terms of a
possible settlement and submit them to the parties for their observations.
If the parties reach agreement on a settlement of the dispute, they may
draw up and sign a written settlement agreement. If requested by the
parties, the conciliator may draw up, or assist the parties in drawing up,
the settlement agreement.
When the parties sign the settlement agreement, it shall be final and
binding on the parties and persons claiming under them respectively.
The conciliator shall authenticate the settlement agreement and furnish a
copy thereof to each of the parties.
The conciliation proceedings ________________________.
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can be used as evidence in any judicial proceedings
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can be used as evidence only in the arbitral proceedings
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can be used as evidence only on the discretion of the judge or arbitrator
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cannot be used as evidence in any arbitral or judicial proceedings
Explanation
As per section 81 of the act, there is no admissibility of proceedings as evidence in other judicial proceedings. It says that, The parties shall not rely on or
introduce as evidence in arbitral or judicial proceedings, whether or not such
proceedings relate to the dispute that is the subject of the conciliation
proceedings.
Hence, D is the correct option.
Termination of conciliation proceedings are laid down under __________.
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section $$76$$
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section $$74$$
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section $$73$$
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section $$75$$
Explanation
Under section 76 of the act, ways of terminating the conciliation proceedings has been provided. It says that the conciliation proceedings shall be terminated:
By the signing of the settlement agreement by the parties on the date of the agreement; or
By a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or
By a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated, on the date of the declaration; or
By a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration.
Which one of the following is an incorrect statement ?
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Conciliation means settling of disputes without litigation.
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The conciliators do not engage in any formal hearing.
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The party comes to settlement only when the award is made by the conciliator.
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None of the above
Explanation
Conciliation is one of the non-binding and informal procedures where an impartial third party, known as the conciliator, assist the parties to a dispute in reaching a mutually agreed settlement of the dispute without any litigation. And as conciliation is non-binding in nature, there is no compulsion on the party to reach a settlement only after award made by the Conciliator.
Hence, C is the correct option.
Conciliation proceedings shall commence _______________.
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when both the parties comes to a written agreement
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when written invitation to conciliation is made to the other party
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when both the parties agree for conciliation mutually
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none of the above
Explanation
Unlike arbitration, there is no requirement of any conciliation agreement rather an invitation is sent to the other party to conciliate identifying the subject of the dispute. As per section 62 of the Act,
the party initiating conciliation shall send to the other party a written
invitation to conciliate identifying the subject of the
dispute.
Conciliation proceedings shall commence when the other party accepts in
writing the invitation to conciliate.
If the other party rejects the invitation, there will be no conciliation
proceedings.
Hence, B is the correct option.
The 'Principle of Co-operation' is laid down under _______________.
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section $$71$$
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section $$70$$
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section $$69$$
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None of the above
Explanation
In Conciliation proceedings under section 71, the parties shall in good faith
cooperate with the conciliator and, in particular, shall endeavor to comply with
requests by the conciliator to submit written materials, provide evidence and
attend meetings.
Which of the following is incorrect statement ?
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The conciliator shall assist the parties in an independent and impartial manner.
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The conciliator can make proposals for settlement but it has to be accompanied by the statement of reasons.
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The conciliator shall be guided by principle of objectivity, fairness and justice.
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None of the above
Explanation
As per section 67(4) of the act, the conciliator may, at any stage of the conciliation proceedings, make
proposals for a settlement of the dispute. Such proposals need not be in
writing and need not be accompanied by a statement of the reasons.
Hence, B is the correct option.
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 __________.
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under International Commercial Arbitration within the meaning of section $$2(f)$$ of Arbitration and Conciliation Act, $$1996$$
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under general arbitration within the meaning of section $$2(a)$$ of Arbitration Act, $$1940$$
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under section $$3(b)$$ of Civil Procedure Code, $$1908$$
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under section $$5(b)$$ of General Clauses Act, $$1897$$
Explanation
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;
Which of the following is incorrect statement ______________.
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under section $$40$$, the arbitration agreement shall not be discharged by death of the party.
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under section $$40$$, where the death occurs during the course of the arbitral proceedings, all the legal representatives are bound by the award
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under section $$40$$, the legal representatives are bound by the award if death occurs during the course of proceedings, but after the death a new arbitrator has to be appointed
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None of the above
Explanation
As per section 40 of the act, an arbitration agreement shall not be discharged by the death of any party
either as the deceased or any other party, but
shall in such event be enforceable by or against the legal representative of
the deceased.
The mandate of an arbitrator shall not be terminated by the death of any
party by whom he was appointed.
Before the enactment of Arbitration and Conciliation Act, $$1996$$ which Act has been applicable in India for the arbitration procedure?
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The Arbitration Act, $$1940$$
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The Code of Civil Procedure, $$1908$$
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The General Clauses Act, $$1897$$
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none of the above
Explanation
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.
The Arbitrator in respect of escalation cost __________.
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has jurisdiction to proceed inherently
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has no jurisdiction to proceed inherently
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has to proceed only within scope of Contract Act
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has to proceed only within scope of
Explanation
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.
What is the meaning of Lokpal ?
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People's representative
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People's voice
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People's caretaker
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None of these
Explanation
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".
The party applying for the enforcement of a foreign award shall, at any time of the application, produce before the court _____________.
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the original award or a copy thereof, duty authenticated in the manner required by law of the country in which it was made
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the original agreement for arbitration or a duty certified copy thereof $$1$$
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such evidence as may be necessary to prove that the award is a foreign award
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All the above
Explanation
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.
Central Vigilance commission is not the apex vigilance commission.
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True
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False
Explanation
The above statement is false.
Central Vigilance Commission (CVC) is an apex Indian governmental body created in 1964 to address governmental corruption. It has the status of an autonomous body, free of control from any executive authority, charged with monitoring all vigilance activity under the Central Government of India, advising various authorities in central Government organizations in planning, executing, reviewing and reforming their vigilance work.
Bar of non-registration of Firm under section $$69$$ of Partnership Act, does not affect maintainability of petition under __________.
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section $$5$$ of Arbitration and Conciliation Act
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section $$9$$ of Arbitration and Conciliation Act
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section $$10$$ of Arbitration and Conciliation Act
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section $$16$$ of Arbitration and Conciliation Act
Explanation
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,
The mandate of an arbitrator shall terminate if ______________________.
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he becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay
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he withdraws from his office or the parties agree to the termination of his mandate
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oth (a) and (b) are correct
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only (b) is correct
Explanation
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.
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