DELHI HIGH COURT
SANJEEV NARULA
Mcnally Bharat Engineering Company Limited – Appellant
Versus
Steel Authority of India Limited – Respondent
| Table of Content |
|---|
| 1. arguments on interpretation of ica rules. (Para 3) |
| 2. ica's legal position and counterarguments. (Para 4) |
| 3. amicus curiae perspectives and recommendations. (Para 5) |
| 4. analysis of fee structure and legal provisions. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 19 , 20 , 21) |
| 5. maintaining the petition and court's jurisdiction. (Para 29 , 30 , 31) |
| 6. final judgment and dismissal of the petition. (Para 32) |
JUDGMENT
Sanjeev Narula, J. (Oral): The present petition under Section 39(2) of the Arbitration and Conciliation Act, 1996 [hereinafter, "the Act"] is directed against the order dated 17th June, 2021 passed by the Arbitral Tribunal appointed under the Rules of Domestic Commercial Arbitration & Conciliation of the Indian Council of Arbitration ("ICA"), as amended w.e.f. 1st April, 2016 [hereinafter, "ICA Rules"].
THE FACTS
2.1. The Petitioner - M/s McNally Bharat Engineering Company Limited [hereinafter, "McNally"] is the lead contractor of a consortium comprising of itself and M/s Southern Cooling Tower Private Limited. Respondent No. 1 - Steel Authority of India Ltd. [hereinafter, "SAIL"] awarded a contract dated 22nd September 2012 for the setting-up of an external pump
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.
The arbitration fees can be separately fixed for claims and counter-claims as per the provisions of the Arbitration and Conciliation Act, 1996, which is consistent with the statutory intent.
Section 2 (d) of the Act the Arbitral Tribunal is defined either as a sole arbitrator or a Panel of arbitrators and the language used in Sub Section (14) of Section 11 is for "determination of Fees o....
The arbitral Tribunal was entitled to fix its fee as its appointment was made by way of an ad hoc agreement between the parties.
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....
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