Even under the Arbitration Act, there is no binding provision obligating the parties or the arbitrators to follow and abide by one fixed rule or procedure to decide the fees – M/s Ircon International Ltd. Vs. Union of India Railway Coach Factor – Delhi High Court
Hon’ble High Court held that even under the Arbitration Act, there is no binding provision obligating the parties or the arbitrators to follow and abide by one fixed rule or procedure to decide the fees. Moreover, party autonomy plays a crucial role in deciding the procedure of an arbitration proceeding. Power, right and entitlement are given to the parties involved in a dispute when it comes to Alternate Dispute Resolution. Therefore, it is essential that where the parties decide a course of action or procedure in arbitration proceedings, which is also supported by the governing entity, the said course of action or procedure is to given due recognition and observation. The Arbitrators shall not pass and issue any directions qua the fees that may be made binding on the parties when the same are in complete violation of the agreement between the parties as well as the specific and explicit directions of the Railway Board and RCF in their communications/notifications.
