SANJEEV NARULA
National Highway Authority Of India – Appellant
Versus
Mep Chennai Bypass Toll Road Pvt. Ltd. And Another – Respondent
JUDGMENT
Sanjeev Narula, J. - National Highway authority of India [hereinafter, 'NHaI'] invokes Section 14 and 15(2) of the arbitration and Conciliation act, 1996, to seek termination of mandate of the arbitral Tribunal comprising of Hon'ble Mr. Justice Vikramjeet Sen (Retd.), Hon'ble Mr. Justice V. N. Sinha (Retd.) and Mr. Ratan K. Singh, Senior advocate.
THE FaCTS
2. Briefly stated, NHaI and Respondent - MEP Chennai Bypass Toll Road Pvt. Ltd. [hereinafter, 'MEP Chennai'] entered into a Concession agreement dated 14th January, 2013 [hereinafter, 'the agreement']. The said agreement contains an arbitration clause, which reads as follows:
'36.3.1 any Dispute which is not resolved amicably by conciliation as provided in Clause 36.2 shall be finally decided by reference to arbitration by a Board of arbitrators appointed in accordance with Clause 36.3.2. Such arbitration shall be held in accordance with the Rules of arbitration of the International Centre for alternative Dispute Resolution, New Delhi (the 'Rules'), or such other rules as may be mutually agreed by the Parties, and shall be subject to the provisions of the arbitration act. The venue of such arbitration shall be Delhi, and th
The arbitral Tribunal was entitled to fix its fee as its appointment was made by way of an ad hoc agreement between the parties.
Arbitration fees must adhere strictly to the terms of the Arbitration Agreement, and unilateral alterations by the Tribunal are impermissible.
The main legal point established in the judgment is the importance of party autonomy in determining arbitral fees, as well as the interpretation and application of the 2020 Circular in the context of....
The main legal point established is the requirement to substantiate grounds for termination of the Arbitral Tribunal's mandate under Section 14 of the Arbitration & Conciliation (Amended) Act, 2015, ....
The fee for arbitration can be fixed with the consent of the parties, and the consequences of non-payment of the fee are prescribed in Section 38(2) of the Arbitration and Conciliation Act, 1996.
The principle of party autonomy is crucial in arbitration proceedings, and the Arbitral Tribunal cannot impose its will and wishes without reason or cause.
Arbitration fees under ICA Rules must be calculated separately for claims and counter-claims, as clarified by the court's interpretation of the rules, reaffirming the Arbitral Tribunal's authority.
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