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

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 Keeping This Overarching Dignity, Rules Of Engagement Must Be Set At Outset. Where 4th Schedule Does Not Apply, You Can't Charge Ipso Facto Charge For Claim & Counterclaim: Supreme Court During the course of hearing, the bench observed that arbitrators could not charge ipso facto for claim and counterclaim in cases where the parties do not agree for the application of the Arbitrator's fees laid down in the 4th schedule. Construction of the term, "sum in dispute": whether separate fees are payable on 4th schedule for claim and counterclaim- if its stand alone reference- then separate fees will be payable. While the bench was dealing with the submissions related to the arbitrators charging a separate fees for claim and counterclaim, Justice Chandrachud, the presiding judge of the bench said, "We're inclined to hold that there must be an upfront determination of fees by the arbitrator because that would render a lot of confidence in the whole process.