MCQs On The Arbitration and Conciliation Act, 1996 Part - 1

Q.1:- Who may be treated as legal representative, within the meaning of this Act:

• A new trustee appointed or elected on the death of the deceased trustee.
• An assignee from a deceased zamindar or to whom the holding reverts on the death of a tenant.
• A trespasser or a person who claims adversely the estate of the deceased
• None of the above

Q.2:- In order to facilitate the conduct of the arbitral proceedings, the parties, or the arbitral tribunal with the consent of the parties:

• May arrange for the settlement of the case
• May arrange to provide legal aid.
• May arrange for administrative assistance by a suitable institution or person.
• May arrange for the reconciliation in the matter

Q.3:- An oral arbitration agreement:

• May be recognised at the discretions of the arbitrators
• Is not recognised as an arbitration agreement.
• May be recognised depending upon the facts and circumstances of case to case.
• May be recognised at the discretion of the parties

Q.4:- What is true about the number of arbitrators:

• Failing the determination the number of arbitrators, the arbitral tribunal shall consist of a sole arbitrator.
• The parties are free to determine the number of arbitrators, provided that such number shall not be an even number.
• Both A and B are correct.
• None of the above

Q.5:- The mandate of an arbitrator shall terminate:

• The arbitrator once appointed cannot be terminated.
• The arbitrator once appointed cannot be terminated.
• Where he withdraws from office for any reason.
• Both A and C are correct.

Q.6:- What is the Time limit for arbitral award:

• Shall be made by a 2/3rd majority of its members.
• Shall be made by a majority of all its members.
• Shall be made by the chief arbitrator.
• Shall be made by all its members.

Q.7:- An arbitral award shall be:

• made in writing and may be signed by any one of the member of the arbitral tribunal
• made in writing and shall be signed by the members of the arbitral tribunal.
• made in writing and shall be signed by the Registrar
• need not in writing

Q.8:- An application for setting aside may not be made __________have elapsed from the date on which the party making that application had received the arbitral award:

• Before three months
• Before one month
• After three months
• After one month

Q.9:- The arbitral tribunal shall:

• have a lien on the arbitral award for only administration fee.
• have a lien on the arbitral award for only legal fee.
• not have a lien on the arbitral award for any unpaid costs of the arbitration.
• have a lien on the arbitral award for any unpaid costs of the arbitration.

Q.10:- An arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India, made on or after the 11 day of October, 1960 in pursuance of an agreement in writing for arbitration to which the Convention set forth in the First Schedule applies, and in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies. This is called as:

• Foreign award
• Domestic award
• Arbitration award
• Conciliation

Q.11:- Who have the power to make rules:

• The Supreme Court may make rules consistent with this Act as to all proceedings before the Court under this Ac
• The Central Government may make rules consistent with this Act as to all proceedings before the Court under this Act.
• The High Court may make rules consistent with this Act as to all proceedings before the Court under this Act.
• None of the above

Q.12:- What is the fee payable when the sum in dispute is upto Rs. 5 Lakh :

• Rs. 50000.
• Rs.40000.
• Rs.55000.
• Rs.45000.

Q.13:- The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators:

• A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.
• The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute
• The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held
• All of the above.

Q.14:- Chapters II of Part II of the Arbitration and Conciliation Act, 1996 deal with the enforcement of certain foreign awards made under:

• The New York and Geneva Convention
• The New York Convention
• The Geneva Convention
• None of the above

Q.15:- An appeal shall lie from the orders(and from no others) to the court authorised by law to hear appeals from original decrees of the court passing the order:

• Setting aside or refusing to set aside an arbitral award under Section 34.
• Granting any measures under Section 9
• Refusing to grant any measures under Section 9
• All of the above

Q.16:- An arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. What is time limit within which the parties have to appoint an arbitrator:

• Within 30 days
• Within 45 days
• Within 60 days
• Within 15 days

Q.17:- An arbitral agreement should NOT have the followings:

• Arbitration agreement may not be in writing.
• Arbitration agreement by the parties to submit to arbitration all or certain disputes
• Arbitration agreement should have mention of a place
• Arbitration Agreement should bear a date

Q.18:- “Arbitral Award”:

• Does not include an interim award
• Inclusion of an interim award depends upon the case to case basis
• Includes an interim award
• May or may not include an interim award

Q.19:- The Arbitration and Conciliation Act, 1996 is based on:

• UNCITRAL’s Model Law on International Commercial Arbitration.
• Schedule II of the Code of Civil Procedure of 1908
• The provisions of the Constitution of India
• The model of the English Act of 1899

Q.20:- What is NOT true about the arbitrator:

• The person who is appointed as an arbitrator is NOT required to give his consent to act as an arbitrator.
• The arbitrator must be absolutely disinterested and impartial.
• He is an extra-judicial tribunal whose decision is binding on the parties.
• Arbitrator is a person who is appointed to determine differences and disputes between two or more parties by their mutual consent.

Q.21:- The interim measures by the Court can be ordered on an application by a party:

• During the arbitral proceedings
• At any time before the enforcement of an award
• Before the arbitral proceedings
• All the options are correct.

Q.22:- When an arbitrator may be challenged:

• he does not possess the qualifications agreed to by the parties.
• circumstances exist that give rise to justifiable doubts as to his independence or impartiality
• Both the options A and B are correct.
• None of the above.

Q.23:- Where the place of arbitration is situate in India, the arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration:

• In accordance with the special law for the time being in force in India.
• In accordance with the substantive law for the time being in force in India.
• In accordance with the general law for the time being in force in India.
• In accordance with the common law for the time being in force in India.

Q.24:- How the appointment of conciliators is made:

• If there are two conciliator each party may appoint one conciliator.
• If there are three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who shall act as the presiding conciliator
• If there is one conciliator, the parties may agree on the name of a sole conciliator.
• All the options are correct.

Q.25:- Which of the following grounds will rise to justifiable doubts as to the independence or impartiality of arbitrators:

• The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties.
• The arbitrator is a lawyer in the same law firm which is representing one of the parties.
• The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.
• All of the above

Q.26:- The conciliator is not bound by the:

• Code of Criminal Procedure, 1973
• Code of Civil Procedure, 1908
• Indian Evidence Act, 1872
• Both B and C are correct

Q.27:- An arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator):

• have received notice, in writing, of their appointment
• have received notice, orally, of their appointment
• have received notice, of their appointment.
• have given the consent of their appointment

Q.28:- Who can amend the Fourth Schedule as provided in the Arbitration and Conciliation Act, 1996:

• The State Government having jurisdiction
• The Central Government
• The Arbitrator
• The Chief Justice of the Supreme Court

Q.29:- Section 10 of the Act states that, the parties are free to determine the number of arbitrators, provided that such number shall not be an even number. However if they fail to determine the number of arbitrators:

• the arbitral tribunal shall consist of a sole arbitrator.
• the arbitral tribunal shall be constituted among the panel of arbitrators
• the arbitral tribunal shall not be constituted
• None of the above.

Q.30:- An arbitration agreement is in writing if it is contained in:

• an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or
• an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
• a document signed by the parties;
• All of the above

Q.31:- “International commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, considered as commercial under the law in force in India and where at least one of the parties is:

• the Government of a foreign country
• an individual who is a national of, or habitually resident in, any country other than India
• a body corporate which is incorporated in any country other than India; or an association or a body of individuals whose central management and control is exercised in any country other than India
• All the options are correct

Q.32:- The Act is based on model law drafted by United Nations Commission on International Trade Laws (UNCITRAL), to provide uniformity and certainty to both categories of cases

• International commercial arbitration
• Both on domestic arbitration as well as international commercial arbitration.
• On domestic arbitration
• None of the above.

Q.33:- Who may be treated as legal representatives:

• A person on whom the estate of a deceased person devolves on the death of the party acting in a representative’s capacity.
• A person who in law represents the estate of a deceased person.
• A person who intermeddles with the estate of the deceased.
• All the options are correct

Q.34:- The jurisdiction of Civil Court:

• Is barred after an application under Section8 of the Act is made for arbitration.
• Can be exercised after an application under section 8 of the Act is made for arbitration.
• Can be exercised after an application under section 8 of the Act is made for arbitration, subject to the permission of the High Court.
• None of the above

Q.35:- The arbitral proceedings in respect of a particular dispute shall commence:

• On the date on which a request for that dispute to be referred to arbitration is filed by the applicant.
• On the date on which a request for that dispute to be referred to arbitration is received by the respondent
• On the date on which a request for that dispute to be referred to arbitration is sent to the respondent.
• On the date on which the arbitrators accepts the dispute.

Q.36:- Under Fast Track Procedure the arbitral tribunal shall consist of:

• a sole arbitrator who shall be chosen by previous arbitral tribunal.
• a sole arbitrator who shall be the senior most among the panel of arbitrators.
• a sole arbitrator who shall be chosen by the parties.
• None of the above.

Q.37:- The making of an award is a rational process which is accentuated by recording the reasons. The award should contain reasons. An award can be made without reasons only when:

• Where the award has been made under Section 30 of the Act i.e. where the parties settled the dispute and the arbitral tribunal has recorded the settlement in the form of an arbitral award on agreed terms.
• Where the arbitration agreement expressly provides that no reasons are to be given,
• Both A and B are correct.
• None of the above

Q.38:- If the time for making an application to set aside the award has expired or the application has been refused, the award shall be enforced under the in the same manner as it were a decree of the Court:

• Code of Civil Procedure, 1908
• The Indian Contract, 1872
• Code of Criminal Procedure, 1973
• The Indian Penal Code, 1860

Q.39:- What is obligatory on the party applying for the enforcement of a foreign award to produce before the Court:

• The original agreement for arbitration or a duly-certified copy thereof
• Such evidence as may be necessary to prove that the award is a foreign award
• The original award or a duly authenticated copy thereof
• All of the above.

Q.40:- Under what circumstances the recognition and enforcement of an arbitral award may be refused if the competent authority in the country where recognition and enforcement is sought finds that:

• the recognition or enforcement of the award would be contrary to the public policy of that country.
• the subject-matter of the difference is not capable of settlement by arbitration under the law of that country
• Both the options are correct.
• None of the above.

Q.41:- The term “close family member” as mentioned in Fifth Schedule DO NOT include:

• In laws
• parent.
• spouse,
• sibling,

Q.42:- When an award would be in conflict with public policy:

• It it violates Section 75 or Section 81 of the Act relating to confidentiality and admissibility of evidence in other proceedings
• If it is induced or affected by fraud
• If is induced by corruption
• All the options are correct.

Q.43:- If the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, the appointment shall be made, upon request of a party:

• By any person designated by him
• By any institution designated by him.
• By the Chief Justice
• All the options are correct.

Q.44:- The Arbitration and Conciliation Act, 1996 deals with:

• Enforcement of foreign arbitral awards
• Domestic arbitration
• International commercial arbitration,
• All of the above

Q.45:- ‘UNCITRAL’ stands for:

• United Nations Commission on National Trade Law
• United Nations Commission on International Trade Law
• Union Nations Commission on International Trade Law
• United Nations Commission on Indian Trade Law

Q.46:- Who are “legal representative”:

• A person who in law represents the estate of a deceased person
• Where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting
• Any person who intermeddles with the estate of the deceased
• All of the above.

Q.47:- The parties may, by consent, extend the period specified in sub-section (1) of Section 29A, which is twelve months for making award for a further period:

• not exceeding six months
• not exceeding one months
• not exceeding three months
• not exceeding five months

Q.48:- A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of prevalent on the date of award, from the date of award to the date of payment:

• two per cent below than the current rate of interest
• one per cent below the current rate of interest
• two per cent higher than the current rate of interest
• one per cent higher than the current rate of interest

Q.49:- Section 37(3) prohibits making of second appeal from an order passed in appeal under Section 37(1) and(2) of the Act:

• But the right to appeal to the Supreme Court is always open to a party aggrieved.
• But the right to revision before the Supreme Court is always open to a party aggrieved.
• But the right to appeal to the High Court is always open to a party aggrieved.
• But the right to revision before the High Court is always open to a party aggrieved.

Q.50:- Chapters I of Part II of the Arbitration and Conciliation Act, 1996 deal with the enforcement of certain foreign awards made under:

• The Geneva Convention
• The New York and Geneva Convention
• The New York Convention
• None of the above.