Module 2 Quiz | CAM | CyberLaw Academy

Q1Arbitration Agreement

Under Section 7 of the Arbitration Act, an arbitration agreement must be:

A.Oral or written, at the parties' discretion B.In writing C.Registered with the Registrar of Companies D.Attested by a notary public

Explanation

Section 7(3) mandates that an arbitration agreement must be in writing. This includes documents signed by parties, exchange of communications, or statements where one party claims arbitration and the other doesn't deny it.

Q2Arbitration Agreement

The doctrine of separability under Section 16 means:

A.Arbitration clause must be in a separate document B.Arbitrators must be separate from the parties C.The arbitration clause is independent of the main contract and survives even if the main contract is void D.Each dispute must be arbitrated separately

Explanation

The doctrine of separability (Section 16) treats the arbitration clause as a separate agreement independent of the main contract. Even if the main contract is void, voidable, or terminated, the arbitration clause survives.

Q3Appointment

According to TRF Limited v. Energo Engineering Projects Ltd., when the Managing Director of a party is given power to nominate an arbitrator:

A.The nomination is valid if made in good faith B.The nomination is valid only for domestic arbitrations C.The nomination requires court approval D.One who is ineligible to be appointed cannot nominate an arbitrator

Explanation

In TRF Limited v. Energo, the Supreme Court held that when a person who is himself ineligible to be appointed as arbitrator (like MD of one party), that person cannot have the power to nominate an arbitrator either.

Q4Appointment

Under Section 12, an arbitrator's disclosure obligation:

A.Is a continuing obligation throughout the arbitration B.Applies only at the time of appointment C.Can be waived by the appointing party D.Only applies to international arbitrations

Explanation

Section 12(1) requires disclosure of circumstances likely to give rise to justifiable doubts. This is a continuing obligation - if new circumstances arise during proceedings, the arbitrator must disclose them.

Q5Proceedings

Under Section 29A, the time limit for completing domestic arbitration is:

A.6 months from tribunal constitution B.12 months from completion of pleadings under Section 23(4) C.24 months from commencement of arbitration D.No statutory time limit

Explanation

Section 29A (introduced by 2015 Amendment) mandates that domestic arbitration awards must be made within 12 months from completion of pleadings. This can be extended by 6 months by consent, or further by court order.

Q6Evidence

Under Section 19, regarding evidence in arbitration:

A.The Indian Evidence Act 1872 strictly applies B.Only documentary evidence is admissible C.The tribunal determines admissibility, relevance, and weight of evidence D.Cross-examination is not permitted

Explanation

Section 19(4) gives the tribunal broad discretion to determine admissibility, relevance, materiality, and weight of evidence. The Indian Evidence Act does not strictly bind arbitral tribunals.

Q7Interim Measures

After the 2015 Amendment, Section 17 orders by the tribunal are:

A.Merely advisory in nature B.Enforceable as orders of court under CPC C.Require court confirmation before enforcement D.Only enforceable in international arbitrations

Explanation

Section 17(2), added by the 2015 Amendment, provides that Section 17 orders shall be deemed to be orders of court and enforceable under CPC as if issued by a court.

Q8Interim Measures

Under Section 9(3), after the tribunal is constituted, court shall not entertain Section 9 applications unless:

A.The amount in dispute exceeds Rs. 1 crore B.Both parties agree to court jurisdiction C.The arbitration is ad-hoc D.Circumstances exist that may not render Section 17 remedy efficacious

Explanation

Section 9(3) limits court intervention after tribunal constitution. Court can entertain Section 9 applications only if Section 17 remedy would be inefficacious - e.g., involving third parties or assets in different jurisdictions.

Q9Proceedings

Under Section 20, the "seat" of arbitration determines:

A.The procedural law (lex arbitri) and supervisory court jurisdiction B.Only the physical location of hearings C.The nationality of arbitrators D.The language of arbitration

Explanation

The seat (juridical seat) determines the procedural law governing the arbitration and which courts have supervisory jurisdiction. Venue is merely the physical location and may differ from seat.

Q10Agreement

Which of the following is a "pathological" arbitration clause issue?

A.Specifying three arbitrators B.Using institutional rules C.Naming a non-existent arbitral institution D.Specifying English as the language of arbitration

Explanation

A pathological clause contains defects that make it inoperable or uncertain. Naming a non-existent institution creates confusion and may render the clause unworkable, leading to satellite litigation.

Module 2: Arbitration Law & Practice

Instructions