2. • Alternative Dispute Resolution is a method
for resolving
disputes outside of the official judicial mechanisms
▫ Classified into 4 types चार प्रकार का वर्गीकरण
Negotiation सौदेबाजी
Voluntary – no involvement of 3rd party who facilitates or imposes.
Mediation मध्यस्थता
Involvement of 3rd party who facilitates the resolution process
▫ Does not impose a resolution on the parties
Collaborative law समझौता वववि द्वारा
Each party has an attorney who facilitates the resolution
process within specifically contracted terms
Arbitration माध्यस्थम
Involvement of 3rd party who imposes a resolution
What is ADR
3. • Constitution of India
▫ Part IV - Directiveprinciples of state policy
(Article 36 –
51) नीवत वनदेशक तत्वों में अनुच्छे द 51
Promotion of international peace and security
The state shall endeavour to encourage settlement of
international disputes by arbitration (Article 51)
Indian Scenario
4. • Section 2 (1) (a)of the Arbitration
and ConciliationAct, 1996 defines the term
“arbitration” as follows–
▫ “arbitration” means any arbitration whether
administered by permanent arbitral institution or not
मध्यस्थम से कवई मध्यस्थ अविप्रेत है जव चाहे स्थाई मध्यस्थम सोंस्था
द्वारा वकया र्गया हव या नहीों
Arbitration: Definition
5. • Four modes of arbitration चार प्रकार
1. Institutional arbitration सोंस्थार्गत
2. Ad hoc arbitration तदथथ
3. Contractual सोंववदात्मक
4. Statutory वैिावनक
Modes of
Arbitration
6. Modes of Arbitration
Institutional Arbitration
• More expensive
• No need of framing the
process
• ▫ Institutional arbitrators
have there own rules
• Parties may select the
arbitrator from the list
• ▫ Based on specialisation
• More flexible when foreign
• country is involved
• Remuneration – have
their own scale for
determining
• Less expensive
• Parties may control the process
• ▫ Process for appointment,
proceedings – all are decided by
the parties
• Delay in process due to
• disagreement
• Selection of arbitral tribunal
• ▫ Shall rely on their own views
• ▫ Difficult in case of
• international arbitration
• Lack of expertise in
drafting the arbitration
clause or agreement
• Remuneration – parties
need to decide the scale
Ad hoc Arbitration
7. Why Arbitration?
Arbitration Matters
• Cost of the proceeding
▫ Lower as compared to
courts
• Time efficient
• Power with the parties
▫ Arbitrator is appointed by
the parties
• Specialisation
▫ Since
appointed
arbitrator is
by the parties,
they may appoint a person
who possess specialised
knowledge in that sector/
area
Court Matters
• Cost of the proceeding
▫ Heavy cost
• Time taking process
• Power with the parties
▫ No power in the hands of
arbitrator
jurisdiction
• Specialisation
except
▫ The judge may or may not
posses the required skills.
Rely on expert view
8. 1859
• Act No. VIII dealing with the Code of Civil Procedure; Chapter VI – Reference to Arbitration
• Sections 312 – 325 deals with reference to arbitration between the parties to a suit
• Sections 326 – 327 deals with arbitration without the intervention of any court
यह वसववल प्रविया सोंवहता 1882 क
े नए प्रविया सोंवहता द्वारा समाप्त करदी र्गयी .
1872
• The Indian Contract Act, 1872 came into force on April 25, 1872
• Section 28 permitted settlement of dispute by arbitration
1899
• Indian Arbitration Act, 1899 came into force on July 1, 1899 – based on the British Arbitration
Act, 1889
• Act 1899 was confined only to Presidency Towns viz. Calcutta, Bombay and Madras.
1908
• The Code of Civil Procedure 1908 was enacted
• Provisions relating to the law of arbitration contained in Schedule II which extended to the
other parts of the British India
History of the law of arbitration
माध्यस्थम का इवतहास
9. 1937
• The Arbitration (Protocol and Convention) Act 1937
• India was a signatory to the convention on the execution of foreign arbitral award
1940
• In 1925, the Civil Justice Committee recommended various changes in the arbitration law
• The Arbitration Act, 1940 was enacted
1961
• India was signatory to the New York Convention 1958.
• For implementing the convention the Foreign Awards (Recognition and Enforcement) Act 1961
was enacted
• The Arbitration (Protocol and Convention) Act 1937 was repealed
1978
• The Eight Law Commission established in 1977 under the Chairmanship of Justice H. R.
Khanna presented 10 reports i.e. from report no. 71 till 80 (between 1978 and 1979)
• The Law Commission of India suggested amendment in the Arbitration Act 1940 in Report
No. 76.
History of the law of arbitration
(2/3)
10. 1996
• Enactment of the Arbitration and Conciliation Act 1996
• Based on United Nations Commission on International Trade Law (UNCITRAL) – model law
on International Commercial Arbitration
2001
• The 16th Law Commission established in 2000 under the Chairmanship of B. P. Jeevan Reddy
presented 11 reports i.e. from report no. 175 till 185 (between 2000 and 2003)
• Report No. 176 recommended the Arbitration and Conciliation (Amendment) Bill, 2002
2014
• The 20th Law Commission established in 2013 under the Chairmanship of D.K. Jain and A. P.
Shah presented 19 reports i.e. from report no. 244 till 262 (between 2014 & 2015)
• Report No. 246 recommended amendments to the Arbitration and Conciliation Act, 1996
2015
• Enactment of the Arbitration and Conciliation (Amendment) Act 2015
• Based on the recommendation od the 20 LC
th
History of the law of arbitration
(3/3)
11. Some similar terms
• Conciliation
• ▫ Conciliator brings the disputants to agreement –
negotiated
• settlement
• ▫ Conciliator is appointed only after the dispute has
arisen
• Mediation
• ▫ It is a structured process
• ▫ Mediator assists thedisputants to
reach a negotiable settlement
• ▫ This process resultsin signed agreement whichdefines
the
• future behaviour of the parties
12. Difference between the 2
terms
Arbitration agreement specifies for even number of arbitrator. Can the said
agreement may be treated as an invalid agreement?
No. In MMTC Ltd. v. Sterlite Industries (India) Ltd. [1996] it was held that the
number of arbitrators is dealt separately in section 10 which is a part of the
machinery provision for the working of the arbitration agreement.
Therefore, the arbitration agreement specifying an even number cannot
be the ground to render the arbitration agreement invalid under the Act
Points for
discussion
Arbitration Conciliation
Pre-condition The process can start only if there
is Arbitration Agreement between
the parties to dispute
No such requirement
Appointment Can be even before dispute arises Appointed only after the
dispute has arisen
Number can be
even/odd
Number of arbitrators need to be
odd
Number of conciliator can be
even
Decision is known as Arbitral award Settlement
Signed by Arbitral tribunal members Parties concerned
13. Scheme of the
Act
• The Act is divided into 4 parts and 3 schedules
Part I – Arbitration (sections 2-43)
• Divided into 10 chapters
• General provisions, Arbitration agreement, Composition of arbitral tribunal, Jurisdiction of arbitral tribunal,
Conduct of arbitral proceedings, Making of arbitral award and termination of proceedings, Recourse against
arbitral award, Finality and enforcement of arbitral awards, Appeals, Misc.
Part II – Enforcement of certain foreign awards (sections 44-60)
• New York Convention Awards, Geneva Convention Awards
Part III – Conciliation (sections 61-81)
Part IV – Supplementary provisions (sections 82-86)
First Schedule – Convention on the Recognition and Enforcement of Foreign Arbitral
Award
Second Schedule – Protocol on Arbitration Clauses
Third Schedule – Execution of Foreign Arbitral Awards
14. • Arbitrator
▫ A person appointed by the parties to settle a dispute
• Arbitral award
▫ It includes an interim award
▫ Generic points:
Shall be in writing and dated
Oral decision is not an award
An arbitral award = decree of the court
Such award shall be signed by the members of the arbitral
tribunal
Signature of majority of members is sufficient with a suitable
reasoning for the omitted signature
Award shall also mention the reason except
Where the parties have agreed that no reasons are to be given,
or
the award is an arbitral award on agreed termsunder section30
(settlement).
Important terms
15. • Arbitration Agreement
▫ Section 2 (1) (b) defines the term to mean an agreement
referred to in section 7
Section 7 defines the „arbitration agreement
‟ to mean an
agreement by parties to submit the arbitration or certain dispute
which has arisen or which may arise between them in respect of
defined legal relationship whether contractual or not
May be in the form of an arbitration clause in the contract or in the
form of a separate agreement
Shall be in writing
Reference in a contract to a document containing the arbitration
clause constitutes an arbitration agreement if the contract is in
writing and the reference is such as to make that arbitration clause
part of the contract
In Hindustan Petroleum Corporation Ltd. v. M/s Pink City Midway
Petroleum [AIR (2003) SC 2881] – The jurisdiction of civil court is
barred after an application under section 8 of the Act is made for
arbitration
In Mahesh Kumar v. Rajasthan State Road Corporation [AIR (2006)
Raj 56] Raj HC held that mere existence of arbitration clause in
agreement does not bar jurisdiction of Civil Court automatically
16. agreement
• KK Modi Vs KN Modi (1998 AIR SC 1297)
▫ The arbitration agreement must contemplate that the decision
of the
tribunal will be binding on the parties to the agreement.
▫ The jurisdiction of the tribunal to decide the rights of the
parties must derive from their consent, or from an order of
the Court or from a statute, the terms of which make it clear
that the process is to be an arbitration.
▫ The agreement must contemplate that substantive rights of the
parties will be determined by the agreed tribunal.
▫ The tribunal will determine the rights of the parties in an
impartial and judicial manner with the tribunal being fair and
equal to both sides.
▫ The agreement of the parties to refer their disputes to the
decision of the tribunal must be intended to be enforceable in
law.
▫ The agreement must contemplate that the tribunal will make a
decision upon a dispute which is already formulated at the
time when a reference is made to the tribunal.
Essential ingredients of an
arbitration
17. • Section 2 (1) (d) defines „arbitral tribun
a
l
‟ to mean a sole arbitrator
or a panel of arbitrators
• Number of arbitrators
▫ Parties may determine the number of arbitrators – such number shall
not be an even number
▫ On failure – the arbitral tribunal shall consist of sole arbitrator
• Appointment of arbitrator
▫ Parties may determine the procedure for appointment of arbitrator
In not acted on time– below process shall be followed
▫ On failure – arbitrator shall be appointed by the manner provided u/s. 11
Arbitrator could be of any nationality
Arbitration with 3 arbitrators
Each party shall appoint 1 arbitrator and the two shall appoint 3rd arbitrator
who shall
be presiding arbitrator
Within 30 days
▫ If the parties fails to appoint their arbitrator
▫ Two appointed arbitrator fails to agree on the 3rd
arbitrator
Composition of arbitral tribunal
the arbitrator shall be
appointed by the SC or HC or
any person or institution
designated by such court
18. • Appointment of arbitrator
▫ In case of sole arbitrator – if the parties fail to agree on
the appointment of a sole arbitrator within 30days
Appointment shall be made by the SC or HC or a person or
institution
designated by such person
▫ Arbitrator appointed by the SC or HC or a person or
institution designated by such person is final
▫ Where the parties belong to different nations – the arbitrator
may be of different nation altogether (in case of sole
arbitrator or 3rd arbitrator)
▫ An application made to the SC or HC or a person or
institution designated by such person shall be disposed
within a period of 60 days from the date of service of notice
on the other party
Composition of arbitral tribunal
19. complaint?
• In Atlaz Degi-TelPvt Ltd Vs Atlaz Technology
Pvt Ltd
[2002(4) RAJ 625 (Bom)]
▫ Arbitration is a remedyfor affording reliefs to the party
affected by the breach of agreement
arbitrator cannot conduct a trial of any act which
amounts to an offence, though the same act may be
connected with the discharge of any function under the
agreement
▫ Although the transaction is question is a
commercial transaction arising out of an
agreement
offence u/s 138 NI Act appears to have been
Whether an arbitral tribunal can entertain
criminal
20. • Whether an arbitrator may be challenged?
▫ An arbitrator shall disclose in writing the grounds likely to give
rise to
justifiable doubts as to his independence or impartiality
On the grounds as stated in the Fifth Schedule
Disclosure shall be made in the form specified in Sixth Schedule
From the time of his appointment and throughout the arbitral
proceedings
▫ An arbitrator may be challenged if –
circumstances exist that give rise to justifiable
doubts as to his
independence or impartiality, or
he does not possess the qualifications agreed to by the parties.
Challenge procedure under section 13
▫ Arbitrator shall not be eligible to be appointed if the relationship
with the parties falls under the categories specified in the
Seventh Schedule
Subsequent to the dispute have arisen between them –
applicability of sub-section (5) may be waived by an express
Grounds for challenge
21. Rules of procedures for conducting the
proceedings
• Arbitral Tribunalis not boundby the Code of
Civil
• Procedure, 1908 or the Indian Evidence Act,
1872
• ▫ Parties are free to agree on the procedure to be
followed by the arbitral tribunal in conducting the
proceedings
• ▫ Failing any agreement – arbitral tribunal may conduct
the
• proceedings in the manner it consider appropriate
• TheCPC provides for rules relating to
22. • Place of arbitration
▫ Parties may decide
▫ In case of failure of any mention in the agreement –
place shall be determined by the arbitral tribunal
(convenient to the parties)
• Commencement of proceeding
▫ Date on which a request for that dispute to be
referred to the arbitration is received by the
respondent
• Language
▫ Parties may decide
▫ In case of failure of any mention in the agreement –
shall be determined by the arbitral tribunal
Arbitration proceedings
23. • Section 23to 27 stipulates the procedure
to be followed in arbitration proceedings
▫ Claimant shall state the facts supporting his claim, the
points at issue and the relief or remedy sought,
▫ the respondent shall state his defence in respect of
these particulars
▫ The parties may submit with their statements all
documents they consider to be relevant or may add
a reference to the documents or other evidence they
will submit.
▫ Unless otherwise agreed by the parties, either party
may amend or supplement his claim or defence during
the course of the arbitral proceedings,
unless the arbitral tribunal considers it inappropriate to
allow the amendment or supplement having regard to the
Arbitration procedure
24. • Default by the parties – without showing sufficient
cause
▫ the claimant fails to communicate his statement of
claim in accordance with sub-section (1) of
section 23,
the arbitral tribunal shall terminate the proceedings;
▫ the respondentfails to communicate his
statement of defence in accordance with sub-
section (1) of section 23,
the arbitral tribunal shall continue the proceedings
without treating that failure in itself as an admission of
the allegations by the claimant.
▫ a party fails to appear at an oral hearing or to
produce documentary evidence,
Arbitration procedure
25. • In an arbitration other than an international commercial
arbitration
▫ the arbitral tribunal shall decide the dispute submitted to
arbitration in accordance with the substantive law for the time
being in force in India;
• In international commercial arbitration
▫ the arbitral tribunal shall decided the dispute in accordance
with the rules of law designated by the parties as applicable to
the substance of the dispute;
▫ any designation by the parties of the law or legal system of a
given country shall be construed, unless otherwise
expressed, as directly referring to the substantive law of that
country and not to its conflict of laws rules;
▫ failing any designation of the law under clause (a) by the
parties, the arbitral tribunal shall apply the rules of law it
considers to be appropriate given all the circumstances
Substance of dispute
26. • Can an arbitral tribunal provide an interim measures?
▫ Yes. Section 17 permits an arbitral tribunal to provide an
interim
measures of protection as deems fit
the preservation, interim custody or sale of any goods which
are the subject-matter of the arbitration agreement;
securing the amount in dispute in the arbitration;
the detention, preservation or inspection of any property or
thing;
interim injunction or the appointment of a receiver;
such other interim measure of protection as
may appear to the arbitral tribunal to be just and
convenient
Arbitral tribunal shall have the same power for making order as
vested with the courts
▫ Arbitral tribunal may require a party to provide
appropriate
security in connection with the measures ordered
Measures provided by the arbitral
tribunal
27. • Section29A (Amendment Act) provides for
time limit for arbitration award
▫ Award shall be made within a period of 12 months
from the
date the arbitral tribunal enters upon the reference
Date on whichthe arbitrator(s) receive notice in writing of
their appointment
Period may be extended by 6 months if the parties consent
▫ If the award is not made within the specified time – the mandate
of the
arbitrator(s) shall be terminated unless the court has extended the
period
▫ If the Court finds that the proceedings have been delayed by the
arbitral tribunal – then Court may order reduction in fees not
exceeding 5% for each month of such delay
▫ Extension may be on an application of any of the parties – such application
shall be disposed within a period of 60 days from the date of service of notice
on the opposite party
▫ If the award is made within a period of 6 months
Arbitral tribunal shall be entitled to receive such amount of
Arbitration Award
28. • Section 31provides for form and contents of arbitral
award
▫ Arbitral award shall be made in writing and shall be
signed by
the members of the arbitral tribunal.
▫ Reason upon which the award is based unless
the parties have agreed that no reasons are to be given, or
the award is an arbitral award on agreed terms under
section 30 (settlement).
▫ Award shall state the date and place of arbitration
▫ Arbitral tribunal shall send the signed copy to each party
▫ Where award is for the payment of money
the arbitral tribunal may include in the sum for which the
award is made interest, at such rate as it deems reasonable
Rate of interest @ 2% higher than the current rate of
interest prevalent on the date of award from the date of
award to the date of payment
Arbitration Award
29. • Whether awards made in an
international commercial
• arbitration shall be considered as foreign
awards?
• ▫ In Bhatia International Vs Bulk Trading S.A.
[(2002) AIR SC 1432]
Award made under Part I of the Act – Domestic
Awards;
Award made in an arbitration held in a non-convention
country
• – Domestic Awards;
Award made in an arbitration held in a convention
Determining domestic & foreign
award
30. • The party shall make an application for setting aside the arbitral award
• Award may be set aside by the Court only if -
▫ the party making the application furnishes proof that
a party was under some incapacity, or
the arbitration agreement is not valid under the law or
the party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case
the arbitral award deals with a dispute not contemplated by or not falling within the terms
of the submission to arbitration, or it contains decisions on matter beyond the scope of
the submission to arbitration:
the composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties, unless such agreement was in conflict with a
provision of this Part from which the parties cannot derogate, or, failing such agreement,
was not in accordance with this Past; or
▫ the Court finds that
the subject-matter of the dispute is not capable of settlement by arbitration under the law
for the time being in force, or
the arbitral award is in conflict with the public policy of India.
• Such application may not be considered if –
▫ An application for setting aside has been made after 3 months have elapsed from the
date on which the party making that application had received the arbitral award,
▫ if a request had been made under section 33 (correction of award), from the date on
which that request had been disposed of by the arbitral tribunal
However, the option to provide sufficient cause is always available
Setting aside arbitral award
31. • An appeal shall lie from the following orders to the
Court authorised by law to hear appeals from original
decrees of the Court passing the order
▫ refusing to refer the parties to arbitration under section 8;
▫ granting or refusing to grant any measure under section 9;
▫ setting aside or refusing to set aside an arbitral award under
section 34.
• Appeal shall also lie to a court from an order of the arbitral
tribunal
▫ accepting the plea referred to in sub-section (2) or sub-section
(3) of section 16; or
▫ granting or refusing to grant an interim measure under section
17.
• No second appeal shall lie from an order passed in appeal
under this section, but nothing in this section shall affect
or taken away any right to appeal to the Supreme Court.
Appealable order
32. • Section 2 (1) (e) defines the term “court” to mean –
• In the case of an arbitration other than international commercial
arbitration
▫ the principal Civil Court of original jurisdiction in a district, and includes
the High Court in exercise of its ordinary original civil jurisdiction, having
jurisdiction to decide the questions forming the subject-matter of the
arbitration if the same had been the subject-matter of a suit, but does not
include any Civil Court of a grade inferior to such principal Civil Court, or
any Court of Small Causes;
• In the case of international commercial arbitration
▫ the High Court in exercise of its ordinary original civil jurisdiction, having
jurisdiction to decide the questions forming the subject-matter of the
arbitration if the same had been the subject-matter of a suit, and in other
cases, a High Court having jurisdiction to hear appeals from decrees of
courts subordinate to that High Court
• Ankati Satyamaiah Vs. Sallangula Lalaiah [(2003)(2) RAJ 433 (AP)]
▫ It was held that the definition of the word 'court' in the expression 'Principal
civil court of original jurisdiction' in Section 2(1) (e) in conjunction with the
meaning given in Section 2(4) of CPC and Section 3(17) of the General
Clauses Act, indicates that it implies the Court of District Judge i.e.
'Principal civil court of original jurisdiction' in a district. Also, the definition
expressly excludes any other civil court of a grade inferior to such courts.
In which court an appeal can be
filed?
33. • The parties at any stage either before or at the time of appointment
of the arbitral tribunal agree in writing to have their dispute resolved
by fast track procedure (section 29B – Amendment Act)
▫ The arbitral tribunal shall decide the dispute on the basis of written
pleadings, documents and submissions filed by the parties without any oral
hearing;
▫ The arbitral tribunal shall have power to call for any further
information or clarification from the parties in addition to the pleadings
and documents filed by them;
▫ An oral hearing may be held only, if, all the parties make a request or if the
arbitral
tribunal considers it necessary to have oral hearing for clarifying certain
issues;
▫ The arbitral tribunal may dispense with any technical formalities, if an oral
hearing is held, and adopt such procedure as deemed appropriate for
expeditious disposal of the case.
• Award shall be made within a period of 6 months from the date the
arbitral tribunal enters upon the reference
▫ Failure to comply with the specified time lines then provisions of section
29A shall
apply
Fast track procedure
34. • Arbitration Clause
• Reference to arbitration agreement
• Procedure for appointment of arbitrator
▫ Name of the arbitrator
• Place of arbitration
• Period within which the arbitrator shall make an
award
• Arbitration fees to be borne
Points to be considered while drafting an
agreement
35.
36. Scheme of the Act post
Amendment Act
• The Act is divided into 4 parts and 7 schedules
Part I – Arbitration (sections 2-43)
Part II – Enforcement of certain foreign awards (sections 44-60)
Part III – Conciliation (sections 61-81)
Part IV – Supplementary provisions (sections 82-86)
First Schedule – Convention on the Recognition and Enforcement of Foreign
Arbitral Award Second Schedule – Protocol on Arbitration Clauses
Third Schedule – Execution of Foreign Arbitral Awards
Fourth Schedule – Determination of the fees of the arbitral tribunal and the manner of its
payment
Fifth Schedule – Parameters determining whether circumstances exists which give rise
to justifiable doubts
Sixth Schedule – Disclosure shall be made by an arbitrator
37. schedule VII
• Previous services for one of the parties or other involvement in the
case
▫ arbitrator has within the past 3 years served as counsel for one of the
parties or an affiliate of one of the parties or has previously
advised or been consulted by the party or an affiliate of the party
making the appointment in an unrelated matter
but the arbitrator and the party or the affiliate of the party have no
ongoing relationship
▫ arbitrator has within the past 3 years served as counsel against one
of the
parties or an affiliate of one of the parties in an unrelated matter
▫ arbitrator has within the past 3 years been appointed as arbitrator on
two or more occasions by one of the parties or an affiliate of one of
the parties.
▫ arbitrator‟
s law firm has within the past 3 years acted for one of the
parties or an affiliate of one of the parties in an unrelated matter
without the involvement of the arbitrator.
▫ arbitrator currently serves,or has served within the past 3 years,
as
arbitrator in another arbitration on a related issueinvolvingone of
the parties or an affiliate of one of the parties
Circumstances under Schedule V
but not covered under
38. Cont…
• Relationship between an arbitrator and another arbitrator or counsel
▫ arbitrator and another arbitrator are lawyers in the same law firm.
▫ arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator
or any of the counsel in the same arbitration.
▫ A lawyer in the arbitrator‟
s law firm is an arbitrator in another dispute involving the same party or
parties or an affiliate of one of the parties.
▫ A close family member of the arbitrator is a partner or employee of the law firm representing
one of the parties, but is not assisting with the dispute.
▫ arbitrator has within the past three years received more than three appointments by the same
counsel or the
same law firm.
• Relationship between arbitrator and party and others involved in the arbitration
▫ arbitrator‟
s law firm is currently acting adverse to one of the parties or an affiliate of one of the parties.
▫ arbitrator had been associated within the past three years with a party or an affiliate of one of the
parties in a professional capacity, such as a former employee or partner.
• Other circumstances
▫ arbitrator holds shares, either directly or indirectly, which by reason of number or denomination
constitute a material holding in one of the parties or an affiliate of one of the parties that is publicly
listed.
▫ arbitrator holds a position in an arbitration institution with appointing authority over the dispute.
▫ arbitrator is a manager, director or part of the management, or has a similar controlling
influence, in an affiliate of one of the parties, where the affiliate is not directly involved in the
matters in dispute in the arbitration.
Circumstances under Schedule V but not covered under
schedule VII
39. • In order to recover the dues from the borrower
following
alternatives are available –
▫ First
Blank cheques collected/ cheques bounce – issue
notice under section 138 of the Negotiable Instrument
Act
▫ Second
Where loan agreement does not contain „arbitration
clause
‟ -
file civil suit for the outstanding amount
▫ Third
Where the loan agreement contains„arbitration clause
‟
Recovery measures available with
NBFCs