Civil Procedure Code (CPC)

Is arbitration proceedings is costly in india.


Recently Government proposed to amend Arbitration & Concilliation Act, 1996 1996 regarding Arbitrator not to charge fee on the basis of per sitting unless agreed to by the parties.

What's your opinion on this? 


can you upload the proposed amendment bill?


Sagar, you are very right  though  proceedings before Arbitrator saves the court fees but arbitrators  per hearing fee makes litigation very costly. 


Yes Goyal Sir, I appreciate with you, the status of arbitration hearings is fastly growing in India and its effect reflects on fees of Arbitrators, but lastly have to pay by client. 

Consultant & Legal Analyst

In fact arbitration process is both the cost saving as well as time saving for both the parties, as compared to any court litigation.


It is true that object to initiate Arbitration proceedin was to save the cost and time of litigation but  Arbitrators per hearing fee makes the proceedings very costly.


The Arbitrator fee and the number of hearings with duration for each has to be broadly considerd by Court while appointment of arbitrator itself. 

Also in the propsed amendments section 80 of AC Act 1996  there is a bar for the concilator to act as arbitrator and needs to be considered for amended. In fact to minimize the cost of litgation in the US and eupore, the law provides for the concilator to arbitrate and resolve the dispute.


Many countries have moved forward from Model  Law  adopted  by  the  United  Nations  Commission  on International Trade Law (UNCITRAL) in 1985.

 Many of the Alternate Dispute Redressal forums provide for same members to concilate and arbitrate to reduce cost of litigation.  

The post award legal mechanism is time consuming and costly as well with no immediate relief to the awardee.




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