Arbitration
& Conciliation Act, 1996
CHAPTER X: MISCELLANEOUS
38. Deposits
(1)
The arbitral tribunal may fix the amount of the deposit or supplementary
deposit, as the case may be, as an advance for the costs referred to in
sub-section (8) of section 31, which it expects will be incurred in respect
of the claim submitted to it:
PROVIDED
that where, apart from the claim, a counter-claim has been submitted to
arbitral tribunal, it may fix separate amount of deposit for the claim
and counter-claim.
(2)
The deposit referred to in sub-section (1) shall be payable in equal shares
by the parties:
PROVIDED
that where one party fails to pay his share of the deposit, the other
party may pay that share:
PROVIDED
FURTHER that where the other party also does not pay the aforesaid share
in respect of the claim or the counter-claim, the arbitral tribunal may
suspend or terminate the arbitral proceedings in respect of such claim
or counter-claim, as the case may be.
(3)
Upon termination of the arbitral proceedings, the arbitral tribunal shall
render an accounting to the parties of the deposits received and shall
return any unexpended balance to the party or parties, as the case may
be.
39. Lien on arbitral award and deposits as to costs
(1)
Subject to the provisions of sub-section (2) and to any provision to the
contrary in the arbitration agreement, the arbitral tribunal shall have
a lien on the arbitral award for any unpaid costs of the arbitration.
(2)
If in any case an arbitral tribunal refuses to deliver its award except
on payment of the costs demanded by it, the court may, on an application
in this behalf, order that the arbitral tribunal shall deliver the arbitral
award to the applicant on payment into court by the applicant of the costs
demanded, and shall, after such inquiry, if any, as it thinks fit, further
order that out of the money so paid into court there shall be paid to
the arbitral tribunal by way of the costs such sum as the court may consider
reasonable and that the balance of the money, if any, shall be refunded
to the applicant.
(3)
An application under sub-section (2) may be made by any party unless the
fees demanded have been fixed by written agreement between him and the
arbitral tribunal, and the arbitral tribunal shall be entitled to appear
and be heard on any such application.
(4)
The court may make such orders as it thinks fit respecting the costs of
the arbitration where any question arises respecting such costs and the
arbitral award contains no sufficient provision concerning them.
40. Arbitration agreement not to be discharged by death of party
thereto
(1)
An arbitration agreement shall not be discharged by the death of any party
thereto either as respects the deceased or as respects any other party,
but shall in such event be enforceable by or against the legal representative
of the deceased.
(2)
The mandate of an arbitrator shall not be terminated by the death of any
party by whom he was appointed.
(3)
Nothing in this section shall affect the operation of any law by virtue
of which any right of action is extinguished by the death of a person.
41. Provisions in case of insolvency
(1)
Where it is provided by a term in a contract to which an insolvent is
a party that any dispute arising thereout or in connection therewith shall
be submitted to arbitration, the said term shall, if the receiver adopts
the contract, be enforceable by or against him so far as it relates to
any such dispute.
(2)
Where a person who has been adjudged an insolvent had, before the commencement
of the insolvency proceedings, become a party to an arbitration agreement,
and any matter to which the agreement applies is required to be determined
in connection with, or for the purposes of, the insolvency proceedings,
then, if the case is one to which sub-section (1) does not apply, any
other party or the receiver may apply to the judicial authority having
jurisdiction in the insolvency proceedings for an order directing that
the matter in question shall be submitted to arbitration in accordance
with the arbitration agreement, and the judicial authority may, if it
is of opinion that, having regard to all the circumstances of the case,
the matter ought to be determined by arbitration, make an order accordingly.
(3)
In this section the expression "receiver" includes an Official
Assignee.
42. Jurisdiction
Notwithstanding
anything contained elsewhere in this Part or in any other law for the
time being in force, where with respect to an arbitration agreement any
application under this Part has been made in a court, that court alone
shall have jurisdiction over the arbitral proceedings and all subsequent
applications arising out of the agreement and the arbitral proceedings
shall be made in that Court and in no other court.
43. Limitation
(1)
The Limitation Act, 1963, shall apply to arbitrations as it applies to
proceedings in court.
(2)
For the purposes of this section and Limitation Act, 1963, an arbitration
shall be deemed to have commenced on the date referred in section 21.
(3)
Where an arbitration agreement to submit future disputes to arbitration
provides that any claim to which the agreement applies shall be barred
unless some step to commence arbitral proceedings is taken within a time
fixed by the agreement, and a dispute arises to which the agreement applies,
the court, if it is of opinion that in the circumstances of the case undue
hardship would otherwise be caused, and notwithstanding that the time
so fixed has expired, may on such terms, if any, as the justice of the
case may require, extend the time for such period as it thinks proper.
(4)
Where the court orders that an arbitral award be set aside, the period
between the commencement of the arbitration and the date of the order
of the court shall be excluded in computing the time prescribed by the
Limitation Act, 1963, for the commencement of the proceedings (including
arbitration) with respect to the dispute so submitted.
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