Arbitrators Fee Cap Is Rs 30 Lakhs, Ceiling Limit Applicable To Individual Arbitrators, Not Tribunal As A Whole : Supreme Court
2 years, 3 months ago

Arbitrators Fee Cap Is Rs 30 Lakhs, Ceiling Limit Applicable To Individual Arbitrators, Not Tribunal As A Whole : Supreme Court

Live Law  

The Supreme Court held that the ceiling of Rs 30,00,000 in entry at Serial No 6 of the Fourth Schedule of the Arbitration and Conciliation Act is applicable to the sum of base amount and the variable amount, and not just the variable amount.This means that the highest fee payable shall be Rs 30,00,000, the bench comprising Justices DY Chandrachud, Surya Kant and Sanjiv Khanna observed. Consequently, the highest fee payable shall be Rs 30,00,000; This ceiling is applicable to each individual arbitrator, and not the arbitral tribunal as a whole, where it consists of three or more arbitrators. Ceiling applicable for each individual arbitrator and not the whole arbitral tribunal Another contention raised was that the ceiling of Rs 30,00,000 prescribed in the entry at Serial No 6 of the Fourth Schedule will be applicable to the cumulative fee paid to the entire arbitral tribunal, i.e., in a three member tribunal, each individual arbitrator would receive a fee of Rs 10,00,000. Consequently, the highest fee payable shall be Rs 30,00,000 -This ceiling is applicable to each individual arbitrator, and not the arbitral tribunal as a whole, where it consists of three or more arbitrators.

Supreme Court Arbitration English Court Schedule Hindi Tribunal Fee Para Fourth 25 Per Cent Individual Surya Kant Arbitrator Dy Chandrachud Arbitral Arbitrators Ceiling Sanjiv Khanna This Interpretation Legislative Intent Fourth Schedule Sixth Entry Serial No Each Individual Arbitrator Base Amount  fourth  court  supreme  fee  rs  arbitrator  individual  tribunal  limit  lakhs  arbitrators  ceiling  arbitral  arbitration  schedule

History of this topic

Arbitrators Cannot Pass Binding And Enforceable Orders Unilaterally Determining Their Fees: Delhi High Court
3 weeks, 4 days ago

Arbitrators Cannot Pass Binding And Enforceable Orders Unilaterally Determining Their Fees: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Dinesh Kumar Sharma has affirmed that Arbitrators do not have the power to unilaterally issue binding and enforceable orders determining their own fees. It was further submitted that in ONGC v. Afcons Gunanusa JV 2022 the Hon'ble Supreme Court has held that a party who is not agreeable to a unilateral revision of …

Arbitrators Must Separately Calculate Fees For Claims And Counterclaims In Ad Hoc Arbitration: Delhi High Court
4 months, 3 weeks ago

Arbitrators Must Separately Calculate Fees For Claims And Counterclaims In Ad Hoc Arbitration: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Jasmeet Singh has set aside computration of fee by an arbitration on the basis decision in Rail Vikas Nigam Ltd. vs. Simplex Infrastructures Ltd which was later set aside in ONGC Ltd. v. Afcons Gunanusa JV, 2022 LiveLaw 723. The final computation of the fee by the Arbitrator was based on the judgment …

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court
1 year, 3 months ago

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court

Live Law  

The High Court of Madras has held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not affect the payment of fees to the arbitrator for the award passed before the moratorium was declared. The Court referred to the decision of the Supreme Court in ONGC v. Afcons Gunanusa, wherein the Apex Court had noted …

Court Under Section 29A Of The A&C Act Would Not Consider Issue Regarding Fees Of Arbitral Tribunal: Delhi High Court
1 year, 5 months ago

Court Under Section 29A Of The A&C Act Would Not Consider Issue Regarding Fees Of Arbitral Tribunal: Delhi High Court

Live Law  

The High Court of Delhi has held the Court exercising power under Section 29A of the A&C Act, which provides for extension of time to conclude arbitral proceedings, is only concerned with the issue as to whether the arbitrator has acted with expedition in the matter and would not consider any issue regarding the conduct of the arbitration or the …

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue
2 years ago

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue

Live Law  

On August 30, 2022, the Supreme Court in the case of ONGC v. Afcons Gunanusa JV whilst dealing with critical issues pertaining to the interpretation of the Fourth Schedule to the Arbitration and Conciliation Act, 1996 and unilateral fixation of arbitral fee, emphasised on party autonomy in arbitration proceedings and crystalized the law relating to arbitrator's fees. The Court determined …

Arbitrators Entitled To Charge Separate Fee For Claim & Counter Claim In Arbitration Proceedings : Supreme Court
2 years, 3 months ago

Arbitrators Entitled To Charge Separate Fee For Claim & Counter Claim In Arbitration Proceedings : Supreme Court

Live Law  

The Supreme Court held that the term 'sum in dispute' in the Fourth Schedule of the Arbitration Act refers to the sum in dispute in a claim and counter-claim separately, and not cumulatively. "Arbitrators shall be entitled to charge a separate fee for the claim and the counter-claim in an ad hoc arbitration proceeding, and the fee ceiling contained in …

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators
2 years, 3 months ago

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators

Live Law  

In its judgment holding that arbitrators do not have the power to unilaterally fix their fees, the Supreme Court also issued directives governing fees of arbitrators in ad hoc arbitrations.The bench comprising Justices DY Chandrachud, Surya Kant and Sanjiv Khanna observed that the fees of the arbitrators must be fixed at the inception to avoid unnecessary litigation and conflicts between. …

Supreme Court To Fix Standards For Arbitrators' Fees; Reserves Judgment
2 years, 7 months ago

Supreme Court To Fix Standards For Arbitrators' Fees; Reserves Judgment

Live Law  

The Supreme Court on Wednesday reserved judgment on the issue of fixation of standards for fees for arbitrators. Submissions Of Counsels Parties Had Agreed That They Would Appoint Arbitrator Who Accepted Conditions Of Arbitration Clause; Arbitrator Fixing Fees Unilaterally Is Inappropriate; What Was In Mind Of Legislature Was Rs 30 Lakhs; Sum In Dispute Will Include Claim & Counter Claim …

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing
2 years, 8 months ago

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing

Live Law  

The Supreme Court on Thursday continued hearing on the issue of fixation of standards for fees for arbitrators. For Determination Of Arbitrator's Fees Claim & Counterclaim Should Be Charged Separately; Legislature Has Been Very Conscious Since Its Mindfulness To Situation That Counterclaim Puts Separate Cause Of Action; There Has To Be Overarching Dignity Which Must Encompass Arbitration Proceeding & While …

Arbitrator's Fees : If There Are HC Rules, They Should Apply; 4th Schedule Can Be A Default Provision, Supreme Court Says During Hearing
2 years, 8 months ago

Arbitrator's Fees : If There Are HC Rules, They Should Apply; 4th Schedule Can Be A Default Provision, Supreme Court Says During Hearing

Live Law  

The Supreme Court on Thursday continued the hearing on the issue of fixation of standards for fees for arbitrators. Submissions Of Counsels 4th Schedule Yardstick or Template By Which Domestic Arbitration Which Is Commercial In Nature Should Continue; Ceiling Of 30 Lakhs To Be Applied Entirely To The Table; Claim and Counterclaim Should Be Aggregate; 4th Schedule Fees Is Separate …

Arbitrator's Fee : Claim & Counter-Claim Have To Be Bundled Up Together, With Rs.30 lakhs Ceiling, Says Supreme Court During Hearing
2 years, 8 months ago

Arbitrator's Fee : Claim & Counter-Claim Have To Be Bundled Up Together, With Rs.30 lakhs Ceiling, Says Supreme Court During Hearing

Live Law  

The Supreme Court on Wednesday resumed the hearing on the issue of fixation of standards for fees for arbitrators. Further, the SG made submissions on whether the model fee corresponding to the various slabs of the 'sum in dispute', as stipulated in Schedule IV of the 1996 Arbitration Act, would be for the whole arbitral tribunal or for each arbitrator. …

Arbitral Fee Under Fourth Schedule Based On Aggregate Value Of Claim & Counter-Claim : Delhi High Court
2 years, 9 months ago

Arbitral Fee Under Fourth Schedule Based On Aggregate Value Of Claim & Counter-Claim : Delhi High Court

Live Law  

The Delhi High Court has observed that the term "sum in dispute" provided in the 4th Schedule to the Arbitration and Conciliation Act, 1996 has to be interpreted so as to include the aggregate value of the claims as well as counter claims.The High Court disagreed with the Arbitrator's view that the claims and counter-claims have to be assessed separately …

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators
3 years, 2 months ago

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators

Live Law  

The Madras High Court on Wednesday imposed Rs 1 lakh costs on an appellant while dismissing a challenge to an arbitral award by terming it to be an abuse of the process of law. The appellant was directed to pay Rs 50,000 to the respondent and a further Rs 50,000 to the Tamil Nadu Legal Services Authority within a month.A …

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