MCQs On The Arbitration and Conciliation Act, 1996 Part - 2

Q.1:- When the conciliator receives factual information concerning the dispute from a party:

• He shall disclose the substance of that information to the other party.
• He shall not disclose the substance of that information to the other party.
• He shall or shall not disclose the substance of that information to the other party, depends upon his discretion.
• None of the above

Q.2:- What are the conditions for commencement of conciliation proceedings:

• The party initiating conciliation shall send to the other party a written invitation to conciliate briefly identifying the subject of the dispute.
• The party initiating conciliation should receive a reply within thirty days from the date on which he sends the invitation to other party.
• Acceptance writing the invitation to conciliate by the other party, if the other party rejects the invitation, there will be no conciliation proceedings
• All the options are correct.

Q.3:- The mandate of an arbitrator shall:

• be terminated by the death of any party by whom he was appointed.
• be terminated by the death of the counter party.
• not be terminated by the death of any party by whom he was appointed
• None of the above.

Q.4:- “Arbitral Tribunal” means:

• Only panel of arbitrators
• A sole arbitrator or a panel of arbitrators
• More than one arbitrator
• Only a sole arbitrator

Q.5:- The purpose of Arbitration Act is to provide quick redressal to __________by private arbitration.

• family disputes
• service disputes
• commercial disputes
• political disputes

Q.6:- 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,
• 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 the options are correct.

Q.7:- As regards the determination of rules of procedure the arbitral tribunal shall not be bound by:

• The Indian Evidence Act, 1872 (1 of 1872).
• The Code of Civil Procedure, 1908 (5 of 1908)
• A or B both
• None of the above

Q.8:- Where the place of arbitration is situate in India, in international commercial arbitration:

• 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) of sub-section (1) of section 28 by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute.
• the arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute;
• All of the above

Q.9:- If the award is made within a period of from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree:

• six months
• twelve months
• three months
• nine months

Q.10:- On what grounds the award may be challenged before the Court:

• Invalidity of the arbitration agreement
• Party applying was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case
• Incapacity of a party
• All the options are correct.

Q.11:- Unless otherwise agreed by the parties, a party with notice to the other party may request, from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award.

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

Q.12:- When an arbitral proceedings shall be terminated:

• Final arbitral award
• Interim award
• Where the arbitral tribunal issue an order for the termination
• Only A and C are correct.

Q.13:- The number of conciliators required in the conciliation:

• Where there is more than one conciliator, they ought, as a general rule, to act jointly.
• There shall be one conciliator unless the parties agree that there shall be two or three conciliators.
• Both A and B are correct.
• None of the above

Q.14:- The Communication between conciliator and parties may:

• Meet or communicate with the parties together or with each of them separately
• Meetings with the conciliator are to be held at such place as determined by the conciliator, after consultation with the parties.
• Be orally or in writing
• All the options are correct.

Q.15:- The Arbitration and Conciliation Act, 1996 has NOT repealed the following Act:

• The Arbitration Act, 1940 (10 of 1940)
• The Sick Industrial Companies (Special Provisions) Act, 1985
• The Foreign Awards (Recognition and Enforcement) Act, 1961 (45 of 1961)
• The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937),

Q.16:- What is application and scope of the conciliation:

• The disputes arising out of legal relationship, whether contractual or not and to all proceedings relating thereto.
• The disputes arising out of business relationship, whether contractual or not and to all proceedings relating thereto.
• The disputes arising out of love relationship, whether contractual or not and to all proceedings relating thereto
• The disputes arising out of family relationship, whether contractual or not and to all proceedings relating thereto.

Q.17:- In arbitration, parties cannot appoint even number of arbitrators; while in conciliation, the number of conciliators can

• Doesn’t matter, whether odd or even
• Be odd only
• Be even only
• None of this

Q.18:- The arbitral tribunal may fix the amount of the deposit or supplementary deposit, as an advance for the costs. What are the rules relating to such deposit:

• Where one party fails to pay his share of the deposit, the other party may pay that share.
• 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.
• The deposit shall be payable in equal shares by the parties.
• All of the above.

Q.19:- Correction and interpretation of award can be made __________from the receipt of the arbitral award:

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

Q.20:- The award under the fast track procedure shall be made:

• within a period of three months from the date the arbitral tribunal enters upon the reference.
• within a period of six months from the date the arbitral tribunal enters upon the reference.
• within a period of nine months from the date the arbitral tribunal enters upon the reference.
• within a period of one months from the date the arbitral tribunal enters upon the reference.

Q.21:- If the award is not made within the prescribed period of twelve months or extended for a further period of not exceeding six months the mandate of the arbitrator(s) shall:

• terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period.
• suspended unless the Court has. either prior to or after the expiry of the period so specified, extended the period.
• not terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period.
• continue unless the Court has, either prior to or after the expiry of the period so specified, extended the period.

Q.22:- What should be language in the arbitration proceedings:

• The language should be Hindi
• The language should be Regional Language
• The parties are free to agree upon the language or languages to be used in the arbitral proceedings.
• The language should English

Q.23:- What shall be place of Arbitration?

• If no place has been agreed upon the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties.
• The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of documents, goods or other property.
• The parties are free to agree on the place of arbitration.
• All of the above.

Q.24:- A party who intends to challenge an arbitrator shall, ___________after becoming aware of the constitution of the arbitral tribunal send a written statement of the reasons for the challenge to the arbitral tribunal:

• Within 15 days
• Within 5 days
• Within 20 days
• Within 10 days

Q.25:- Whether a foreign national can be an arbitrator for the Indian cases:

• A person of Indian nationality only can be an arbitrator.
• A person of foreign national with whom the India have friendly relation, can become an arbitrator.
• A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.
• None of the above.

Q.26:- When the mandate of an arbitrator shall terminate:

• He for other reasons fails to act without undue delay
• He withdraws from his office or the parties agree to the termination of his mandate.
• He becomes de jure or de facto unable to perform his functions
• All of the above.

Q.27:- What are the conditions for enforcement of foreign awards:

• The award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure.
• The award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto.
• The subject-matter of the award is capable of settlement by arbitration under the law of India.
• All of the above.

Q.28:- In conciliation the decision is known as:

• Decision
• Opinion
• Settlement
• Arbitral award

Q.29:- Where the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of on the fee payable as per the table set out in Fourth Schedule:

• Thirty per cent
• Twenty-five per cent
• Twenty percent
• Fifteen per cent

Q.30:- In arbitral proceedings where there more than one arbitrator the decision of the arbitral tribunal:

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

Q.31:- Whether a written communication sent over mail id of the addressee can be deemed to have been received:

• No
• Yes
• Yes, unless otherwise agreed by the parties
• None of the above.

Q.32:- The Arbitration and Conciliation Act, 1996 extends to:

• It shall extend to whole of India, but Parts I, III and IV shall extend to the State of Jammu and Kashmir only in so far as they relate to international commercial arbitration or, as the case may be, international commercial conciliation.
• It shall extend to whole of India excluding the Union Territories.
• It shall extend to the whole of India.
• It shall extend only to the State of Jammu and Kashmir.