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NEENA BANSAL KRISHNA
National Highways Authority Of India – Appellant
Versus
IJM Gayatri JV – Respondent
JUDGMENT :
NEENA BANSAL KRISHNA, J
I.A. 10890/2021 (u/S 36 of Arbitration and Conciliation Act, 1996)
1. The application under Section 36 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “A & C Act, 1996”) has been filed on behalf of the applicant/National Highways Authority of India (hereinafter referred to as “NHAI”) seeking stay of the operation of impugned Arbitral Award dated 04th February, 2021 passed by the Arbitrators comprising of Mr. Justice A.K. Sikri, Presiding Arbitrator, Mr. Justice R.C. Chopra, Co-Arbitrator, and Mr. K.B. Lal Singal, Co-Arbitrator only to the limited extent of the directions given by the Arbitral Tribunal (hereinafter referred to as “AT”) to the petitioner Authority to pay the fee of the AT in disregard to Schedule-IV of A & C Act, 1996, which has formed the part of the Award.
2. It is submitted that the respondent had filed an application dated 12th November, 2020 stating that the fee as per the Schedule-IV of A & C Act, 1996 is Rs. 30,00,000/- per Arbitrator and the interpretation given to the Schedule by this AT, should not be accepted as the Judgment in the case of Rail Vikas Nigam Ltd. Vs. Simplex Infrastructures Ltd. O.M.P.
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 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 principle of party autonomy is crucial in arbitration proceedings, and the Arbitral Tribunal cannot impose its will and wishes without reason or cause.
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.
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