Section 38 Arbitration Act 1996 (DEPOSITS) requires parties to:
Answer & Solution
Correct answer: C.
1. Section 38 Arbitration and Conciliation Act 1996:
2. (1) The arbitral tribunal may FIX the amount of the DEPOSIT or supplementary deposit, as the case may be, as an ADVANCE for the COSTS referred to in sub-section (8) of Section 31, which it expects will be incurred in respect of the claim submitted to it.
3. (2) The deposit referred to in sub-section (1) shall be PAYABLE IN EQUAL SHARES by the parties — UNLESS THE TRIBUNAL OTHERWISE DECIDES.
4. (3) If a party FAILS TO PAY the share of the deposit, the OTHER PARTY may pay that share.
5. ENFORCEMENT: under Section 38(4), if a party fails to pay despite request, the tribunal may suspend or terminate the proceedings.
6. The provision ensures FINANCIAL VIABILITY of arbitration.
7. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 38_
Related questions
In SBP & Co. v. PATEL ENGINEERING LTD (2005) 8 SCC 618, the Supreme Court held that the JUSection 28 Arbitration Act 1996 specifies APPLICABLE LAW:Section 39 Arbitration Act 1996 grants the arbitral tribunal LIEN on the:INTERIM AWARD under Arbitration Act 1996:DOMESTIC ARBITRATION versus INTERNATIONAL COMMERCIAL ARBITRATION:Section 21 Arbitration Act 1996 defines COMMENCEMENT OF ARBITRATION as:Section 43 Arbitration Act 1996 (LIMITATION) provides that the period of LIMITATION ACT 19Section 37 Arbitration Act 1996 lists APPEALABLE ORDERS: