Jan 23, 2024

Unilateral Revision in Arbitrator’s Fees Does Not Terminate Mandate under Section 12 of Arbitration Act

The SC in Chennai Metro Rail Limited v. Transtonnelstroy Afcons (JV) and Anr.,[1] held that while an Arbitral Tribunal cannot unilaterally revise its fees, however, a unilateral revision in the fees does not result in termination of Tribunal’s mandate under Section 12 of the Arbitration Act. The SC observed that the only circumstances under which an Arbitral Tribunal can be deemed to be ineligible are the grounds laid down in the Seventh Schedule of the Arbitration Act. Therefore, a unilateral revision in fees by an Arbitral Tribunal, not being specifically provided for in Section 12(5) read with the Seventh Schedule, does not render the Arbitral Tribunal as ineligible, and thus, would not terminate the mandate of the Arbitral Tribunal.

[1] Chennai Metro Rail Limited v. Transtonnelstroy Afcons (JV) and Anr., 2023 SCC OnLine SC 1370.




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