- Under the Arbitration and Conciliation Act, 1996, which of the following correctly describes the extent of applicability of Part I of the Act?
A. It applies only where the arbitration takes place in India
B. It applies irrespective of the seat of arbitration
C. It applies only to international commercial arbitration
D. It applies only if the parties expressly agree
Correct Answer: A
Explanation:
Section 2(2) provides that Part I applies where the place (seat) of arbitration is in India, unless otherwise provided. This principle was clarified by the Supreme Court in Bharat Aluminium Co. v. Kaiser Aluminium Technical Services Inc., which held that Part I is territorial in nature.
2. Which of the following is NOT included within the definition of “Court” under Section 2(1)(e)?
A. Principal Civil Court of original jurisdiction in a district
B. High Court exercising original civil jurisdiction
C. Any Civil Court subordinate to the District Court
D. High Court in exercise of its ordinary original civil jurisdiction
Correct Answer: C
Explanation:
Section 2(1)(e) limits “Court” to the Principal Civil Court of original jurisdiction in a district or the High Court having original civil jurisdiction. Subordinate civil courts are excluded.
3.Under Section 4 of the Arbitration and Conciliation Act, 1996, a party is deemed to have waived its right to object if:
A. The party objects after the award is passed
B. The party proceeds with arbitration without stating its objection without undue delay
C. The party files an application before the court
D. The party disagrees with the arbitrator
Correct Answer: B
Explanation:
Section 4 states that if a party proceeds with arbitration knowing that a requirement has not been complied with and fails to object without undue delay, the party is deemed to have waived its right to object.
4. Section 5 of the Act embodies which of the following principles?
A. Doctrine of res judicata
B. Principle of minimal judicial intervention
C. Principle of natural justice
D. Doctrine of ultra vires
Correct Answer: B
Explanation:
Section 5 explicitly provides that no judicial authority shall intervene except where so provided in the Act, establishing the principle of minimal court intervention.
5. Under Section 7, which of the following constitutes a valid arbitration agreement?
A. Only an agreement signed by both parties
B. Oral agreement between the parties
C. Agreement contained in exchange of letters, emails, or other means of communication
D. Agreement made after the dispute arises only
Correct Answer: C
Explanation:
Section 7 states that an arbitration agreement must be in writing, which includes exchange of letters, telex, telegrams, emails or other electronic communications.
6. Which of the following doctrines is embodied in Section 8 of the Act?
A. Kompetenz-Kompetenz
B. Party autonomy
C. Doctrine of reference to arbitration by judicial authority
D. Doctrine of frustration
Correct Answer: C
Explanation:
Section 8 requires a judicial authority to refer parties to arbitration when there exists a valid arbitration agreement and a party applies before submitting its first statement on the substance of the dispute.
7.Section 10 of the Act provides that:
A. The number of arbitrators must always be one
B. The number of arbitrators must always be three
C. Parties are free to determine the number of arbitrators, but it shall not be an even number
D. Courts determine the number of arbitrators in all cases
Correct Answer: C
Explanation:
Section 10 provides party autonomy in determining the number of arbitrators, but the number cannot be even to avoid deadlock.
8. Under Section 11 of the Arbitration and Conciliation Act, 1996, the power to appoint arbitrators is exercised by:
A. District Court
B. High Court or the Supreme Court depending on the arbitration
C. Only the Supreme Court
D. Only the Central Government
Correct Answer: B
Explanation:
After the 2015 Amendment, appointment powers are exercised by the Supreme Court for international commercial arbitration and High Courts for domestic arbitration.
9. According to Section 12, which of the following is the primary ground for challenging an arbitrator?
A. Arbitrator is a lawyer
B. Arbitrator charges high fees
C. Circumstances giving rise to justifiable doubts as to independence or impartiality
D. Arbitrator resides in another state
Correct Answer: C
Explanation:
Section 12 requires disclosure by the arbitrator and allows challenge where justifiable doubts exist regarding independence or impartiality.
10. Under Section 14, the mandate of an arbitrator shall terminate if:
A. The arbitrator refuses to give an award in favour of a party
B. The arbitrator becomes de jure or de facto unable to perform his functions
C. The parties disagree with the proceedings
D. The arbitrator adjourns the hearing
Correct Answer: B
Explanation:
Section 14 provides that the mandate terminates when the arbitrator becomes legally (de jure) or practically (de facto) unable to perform his functions, or fails to act without undue delay.
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