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CH 6. Arbitration and Conciliation MCQ

Chapter 6 discusses arbitration and conciliation as alternative dispute resolution methods. It covers key concepts like arbitration agreements, arbitral tribunals, arbitration proceedings and awards. Arbitration allows parties to choose the location and procedures for dispute settlement and leads to faster and private resolutions compared to court litigation. However, certain disputes like those related to illegal activities cannot be arbitrated. The chapter establishes rules for appointing arbitrators and enforcing arbitration decisions domestically and internationally.

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50% found this document useful (2 votes)
4K views6 pages

CH 6. Arbitration and Conciliation MCQ

Chapter 6 discusses arbitration and conciliation as alternative dispute resolution methods. It covers key concepts like arbitration agreements, arbitral tribunals, arbitration proceedings and awards. Arbitration allows parties to choose the location and procedures for dispute settlement and leads to faster and private resolutions compared to court litigation. However, certain disputes like those related to illegal activities cannot be arbitrated. The chapter establishes rules for appointing arbitrators and enforcing arbitration decisions domestically and internationally.

Uploaded by

Abhishek
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter 6 ARBITRATION AND CONCILIATION

Chapter 6 : ARBITRATION AND CONCILIATION


1. Which of the following are Alternate Methods of Dispute Resolution (ADR method):
6.1
a. Arbitration b. Conciliation c. Both a. and b. d. Neither a. nor b.

2. Which of the following are benefits derived from use of ADR methods:
a. Lower Costs b. Greater procedural flexibility c. High likelihood of settlement d. All of these

3. Which of the following is not a method of ADR:


a. Panchayat b. Lok Adalat c. Permanent Lok Adalat d. Judicial Settlement

4. ‘Arbitral Award’ means:


a. Only final award b. Only Interim Award c. Both Final and Interim d. None of these
from Arbitration from Arbitration awards

5. ‘Arbitral Tribunal’ refers to:


a. Sole Arbitrator b. Panel of Arbitrators c. Both a. & b. d. Neither a. nor b.

6. Arbitrator is selected by:


a. SG b. CG c. Ministry of Justice d. Parties themselves

7. Features of Arbitration include:


a. Consent of Parties b. Selection of Seat of c. Confidentiality of d. Appointment of
Arbitration Arbitration proceedings Arbitrator by CG

8. Arbitration proceedings are to be conducted at:


a. Sessions Courts b. High Courts c. Municipal Council d. Place chosen by parties

9. Arbitrator is assigned to the Arbitration Proceedings by:


a. Parties to the b. Bench of Judges of c. Council of Ministry of d. Expert
Arbitration Proceeding Supreme Court Justice Committee of CG

10. Arbitration Proceedings strictly adhere to:


a. Code of Civil b. Code of Criminal c. Parties choose their d. Code of the International
Procedure Procedure procedure to suit them Court of Justice

11. Proceedings are conducted:


a. Open to public b. Open to parties and their c. Both a. and b. d. Only lawyers of parties.
lawyers only

12. Arbitration decisions i.e. award is easy to enforce in Foreign Countries compared to Court rulings
a. Yes, as it is governed by b. No c. N.A as Arbitration is only d. Depends on the
International treaties for Domestic disputes of award

13. Powers under the Arbitration and Conciliation Act 1996 are granted to:
a. Judicial Authority b. Court c. SC/HC d. All of these

14. For International Commercial Arbitration, the term ‘Court’ means


a. Lok Adalat b. Sessions Court c. High Court d. None of these

© CA Darshan D. Khare
Chapter 6 Arbitration and Conciliation

15. For Arbitration other than International Commercial Arbitration, the term ‘Court’ means
6.2
a. District Court b. High Court c. Both a. and b. d. Neither a. nor b.

16. On a request for appointment of Arbitrator, the High Court shall appoint Arbitrator for:
a. International Commercial b. Domestic Arbitration c. Both a. and d. Neither a. nor
Arbitration b. b.

17. On a request for appointment of Arbitrator, the Supreme Court shall appoint Arbitrator for:
a. International Commercial b. Domestic c. Both a. and b. d. Neither a. nor b.
Arbitration Arbitration

18. A person or Institution can be designated by SC/HC to appoint arbitrators:


a. True, for both SC/HC b. False, for both SC/HC c. True, only for SC d. True, only for HC

19. Arbitration agreement shall be in form of:


a. Arbitration Clause in b. Separate document c. Both a. and b. d. As per Govt
a contract itself defined format only

20. Arbitration agreement can be in:


a. Written form only b. Oral form only c. Both a. and b. d. Even tacit form is permitted

21. Arbitration Agreement shall be in writing if:


a. it’s a document b. it is contained in letters c. it is contained in letters d. All of
signed by both parties and other non-electronic and other electronic these
communications communications

22. Document 1 consists of an Arbitration Contract. Document 2 merely refers to using the terms in
Document 1. Does reference qualify as an Arbitration Contract?
a. Yes b. No

23. ‘Arbitration Clause’ and ‘Submission Agreement’ differentiate the Arbitration Agreement on the basis
of:
a. The time when b. The time taken for c. The mode d. The number of
the dispute arises the dispute to be settled (physical/electronic) of the pages of the
agreement agreement

24. ‘Arbitration Clause’ Arbitration Agreement makes the following disputes available to Arbitration:
a. Disputes arising after b. Disputes arisen before c. Disputes arising in d. Disputes arising
making the Agreement making the Agreement International Commercial for values less than
Arbitration 10% of turnover

25. ‘Submission Clause’ Arbitration Agreement makes the following disputes available to Arbitration:
a. Disputes arising after b. Disputes arisen before c. Disputes arising in d. Disputes arising
making the Agreement making the Agreement International Commercial for values less than
Arbitration 10% of turnover

26. What shall happen if one of the 2 parties in an Arbitration unilaterally seeks to proceed to court to
litigate the matter:
a. The matter shall be b. The matter shall be c. The matter shall be d. Both proceedings
admitted and the referred back to admitted and fine shall be shall proceed

© CA Darshan D. Khare
Chapter 6 ARBITRATION AND CONCILIATION

arbitration shall arbitration imposed for breach of simultaneously, Court


cease contract decision prevails

27. The contract which contained the Arbitration Agreement was invalid. Will the Arbitration Agreement be 6.3
invalidated by this mere fact as well:
a. Yes, as it is a part b. No, as it is not part of the c. No, as there is ‘Doctrine d. None of the
of the agreement agreement , as Arbitration of Separability’ which allows above
to which consent is agreement shall be made both Contracts to perform
given and agreed to separately independently

28. The question arose before Arbitrator as to the validity of a contract which contained the Arbitration
Agreement. The contract was principal to the Arbitration Agreement. The ruling on the validity of
contract indirectly was a ruling on the Arbitrator’s own jurisdiction: Is this valid?
a. Yes, as per b. No, as generally a judge c. No, as the Arbitrator is d. Yes, but only
the Act this is cannot pass judgement on the required to arbitrate only after obtaining
valid validity of his own appointment valid contracts under law permission of CG

29. Can one of the parties to the Arbitration Agreement themselves be the Arbitrator:
a. Yes, in case of b. No, since the aspect of c. Yes, provided that d. Yes, provided that
Government neutrality is missing, such Arbitrator is an officer of the if the ruling is in it’s
Company, it can be a Arbitration Agreement is Government holding own favour, the
Arbitrator in own not covered in specified Grade other party forgoes
case Arbitration right to appeal

30. A Ltd and B Ltd agreed to Arbitration by a retired Judge in their joint venture. In pursuit of their Joint
venture, they dealt in certain Prohibited drugs, and divided the gains thereof. Later A disputed the
division of gains. Can this contract be arbitrated?
a. Yes, as conditions for b. No, as the subject c. Yes, as the Judge is d. No, as the
Arbitration are fulfilled under Arbitration is competent to provide Arbitrator is a retired
and that is only criteria strictly to be exercised judgement in matters of Judge and as such not
upon in Court Criminal nature qualified

31. Principal Agreement was discharged after the completion of the duties thereunder. Will the Arbitration
Agreement made thereunder continue?
a. Yes, as Doctrine of Separability b. No, as the agreement is c. Yes, as Arbitration
applies making the Principal Contract completed and as such the Agreement is always without
and Arbitration Agreement arbitration agreement also a limit on its time/tenure and
independent terminated with the contract valid forever

32. Principal Agreement was terminated due to breach of Contract. Will the Arbitration Agreement made
thereunder continue?
a. Yes, as Doctrine of Separability b. No, as the agreement is c. Yes, as Arbitration
applies making the Principal Contract completed and as such the Agreement is always without
and Arbitration Agreement arbitration agreement also a limit on its time/tenure and
independent terminated with the contract valid forever.

33. In case of Death of the parties, the Arbitration Agreement shall:


a. be discharged b. be enforceable by or c. be enforceable by the d. be enforceable against
against the legal legal representative but the legal representative
representative not against him but not by him

34. Are even number of Arbitrators (i.e. 2,4,6…) on a Arbitral Tribunal permitted:

© CA Darshan D. Khare
Chapter 6 Arbitration and Conciliation

a. Yes, as per decision b. No, the Act prohibits c. Both a. and b. The Act clearly provides that
upheld in a case even number of there can be any number of
6.4
Arbitrators Arbitrators.

35. What is the default appointment procedure u/s 11 in case no procedure is decided by the parties and
the maximum arbitrator shall be 1:
a. Parties appoint b. Both appoint one c. Appointment to be made d. All of the above
jointly one arbitrator each, and the appointees by an unrelated person or
appoint a third institution

36. What is the default appointment procedure u/s 11 in case no procedure is decided by the parties and
the maximum arbitrator shall be 3:
a. Parties appoint b. Both appoint one c. Appointment to be made d. All of the above
jointly one arbitrator each, and the appointees by an unrelated person or
appoint a third institution

37. Mr. Brainiac was a minor but highly rated by both the parties to arbitration, and hence appointed
arbitrator. What is the age limit to be appointed as an Arbitrator?
a. A minor cannot be arbitrator b. 45 years to c. There is no age limit, or d. Upper limit only of
as he is unable to contract 70 years inability imposed on 70 years, no lower
minors limit

38. What is the default appointment procedure u/s 11 in case appointing authority to which duty to make
arbitrator appointment was given, failed to execute:
a. Parties b. Both appoint c. Appointment to be made by an d. Approach the SC/HC for
appoint jointly one each, and the unrelated person or institution, appointment based on type
one arbitrator appointees different from the first of arbitration (i.e. Domestic/
appoint a third person/institution that failed International)

39. What are the instances in which an Arbitrator may be terminated


a. Voluntary decision b. Unanimous decision c. Operation of Law (inability or d. All of
to step down of parties to remove process ends)/ Termination by these
Court in case of bias

40. Course of action on termination of Arbitrator:


a. Appoint new arbitrator b. Parties to approach SC/ HC c. First a. then b. d. First b. then a.
under original scheme of based on the type of arbitration
appointment (domestic/international)

41. For termination of Arbitrator, whom should the first challenge be raised against:
a. Arbitrator himself b. District Court c. High Court d. Supreme Court

42. For termination of Arbitrator in case of Domestic Arbitration, whom should the challenge be raised
against (after the Arbitrator):
a. Panchayat/ Municipal Council b. District Court c. High Court d. Supreme Court

43. For termination of Arbitrator in case of International Commercial Arbitration, whom should the
challenge be raised against (after the Arbitrator):
a. Panchayat/Municipal Council b. District Court c. High Court d. Supreme Court

44. Arbitral Award is sought to be challenged by A. Ltd who was a party to the Arbitration along with B Ltd.

© CA Darshan D. Khare
Chapter 6 ARBITRATION AND CONCILIATION

In case of a Domestic Arbitration who can the challenge be made to?


a. Panchayat/Municipal b. District Court/High c. Only High Court d. Supreme Court
Council Court
6.5
45. Arbitral Award is sought to be challenged by A. Ltd who was a party to the Arbitration alongwith B Ltd.
In case of an International Commercial Arbitration who can the challenge be made to?
a. Panchayat/Municipal Council b. District Court/High Court c. Only High Court d. Supreme Court

46. What is the Maximum time within which a challenge against the Arbitral Award can be made:
a. 1 month from the b. 3 months from c. 1 month from the date d. 3 months from the date
date when Award is the date when when Award is received . when Award is received .
received Award is received Maximum extension of Maximum extension of
further 30 days by Court further 30 days by Court

47. At what time is an Additional Award made:


a. After Settlement Award b. After Interim c. After Final Award but d. After Interim Award
but before expiry of 30 Award but before before expiry 30 days but before expiry of 30
days thereof Final Award thereof days thereof

48. What are the types of Interim Award:


a. Interim Award which remains b. Interim Award which is Final as c. Both a. d. Neither a.
in force till Final Award is made far as the matters it deals with and b. nor b.

49. What is a Settlement Award?


a. Matter adjudicated b. Parties choose to settle c. Claims not settled d. None of
by the Arbitrator, but the matters and not involve previously in Final Award these
settled at lesser value the Arbitrator to adjudicate are put forth to the Arbitral
by parties than what is the same. Once settled, if tribunal within a time frame
decided by arbitrator the Arbitrator agrees, it is in order to cover such left
made into an award out issues

50. What is an Additional Award?


a. Matter adjudicated b. Parties choose to settle the c. Claims not settled previously d. None
by the Arbitrator, but matters and not involve the in Final Award are put forth to of these
settled at lesser value Arbitrator to adjudicate the the Arbitral tribunal within a
by parties than what is same. Once settled, if the time frame in order to cover
decided by arbitrator Arbitrator agrees, it is made into such left out issues
an award

© CA Darshan D. Khare
Chapter 6 Arbitration and Conciliation

Answers
6.6

Q. No. Ans. Q. No. Ans. Q. No. Ans. Q. No. Ans. Q. No. Ans.
1 c 11 b 21 d 31 b 41 a
2 d 12 a 22 a 32 a 42 b
3 a 13 d 23 a 33 b 43 c
4 c 14 c 24 a 34 c 44 b
5 c 15 c 25 b 35 a 45 c
6 d 16 b 26 b 36 b 46 d
7 d 17 a 27 c 37 a 47 c
8 d 18 a 28 a 38 d 48 c
9 a 19 c 29 b 39 d 49 b
10 c 20 a 30 b 40 c 50 c

© CA Darshan D. Khare

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