Question And Answer
Subject: exorbitant fees by arbitrators
Querist: bs
Answered by:
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Date: May 7, 2023
Query asked by bs

Can a party to the dispute refuse to pay fee of arbitrator  if he is demanding unaffordable sum after getting appointed u/s 11 of Arbitration & Con At 1996 by a court?
Can a court decide fees of arbitrator ?

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the Arbitration and Conciliation (Amendment) Act, 2015 (w.e.f 23.10.2015) introduced the fourth schedule which determines the model fees which is proportional to the disputed claim.

The Hon’ble Supreme Court in the case of ONGC v. Afcons Guanusa JV Arbitration Petition (Civil) No. 5 of 2022 (SC)inter alia, held that arbitrators cannot unilaterally decide their fees and any order passed by the arbitral tribunal to this effect shall not be binding on the parties.

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