www.barcouncilofindia.org Bar Council of India : All India Bar Examination Model Question Paper

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PART
Subject 1: Alternative Dispute Resolution

Category A :
Question 1: Which provision of the Code of Civil Procedure, 1980 (“the CPC”) specifically provides for the settlement of disputes through alternative dispute resolution?
Options:
(a) There is no specific provision of the CPC providing for alternative dispute resolution.
(b) The CPC as a whole provides for alternative dispute resolution.
(c) Section 89 of the CPC expressly provides for settlement of disputes through alternative dispute resolution.
(d) It is not the CPC, but rather, the Arbitration Act of 1987 which is the
governing law on alternative dispute resolution in the country today.
(e) Section 5 of the CPC expressly provides for alternative dispute resolution.

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Question 2: Which of the following most accurately describes the requirements of a valid arbitration agreement under the Arbitration and Conciliation Act, 1996 (“the Arbitration Act, 1996”)?
Options:
(a) There is no need for parties to a dispute to frame an arbitration agreement under the Arbitration Act, 1996 (“the Arbitration Act”).
(b) The parties need not concern themselves with the validity of the arbitration agreement.
(c) The provisions of the Indian Contract Act, 1872 (“the Contract Act”), do not apply to such agreements.
(d) The arbitration agreement must be valid as per the Contract Act, and the parties must be competent to contract.
(e) The only requirement is that the parties must be competent to contract; all other requirements of validity under the Contract Act are unnecessary.
Question 3: Which of the following most accurately describes the enforceability of an arbitral award?
Options:
(a) An arbitral award is not binding on the parties; they may choose to follow it if they so wish.
(b) An arbitral award, unless set aside by a court of competent jurisdiction, is enforceable in the same manner as a decree of a civil court.
(c) An arbitral award can only be enforced if there is a specific direction from a court that it should be so enforced.
(d) An arbitral award can be enforced, but only upon an application by the
arbitrator to a court to do so.
(e) An arbitral award cannot be enforced in the case of commercial disputes.
Question 4: Under the Arbitration Act, does the arbitrator have to provide reasons for the award?
Options:
(a) An arbitrator must always provide reasons for the award.
(b) An arbitrator need never provide reasons for the award.
(c) An arbitrator need only provide reasons for the award when specifically
requested by the parties to do so.
(d) An arbitrator must always provide reasons for the award, unless the parties have agreed that no reasons are to be given, or the award is an arbitral award on agreed terms.
(e) An arbitrator must always provide reasons for the award, and the only
exception to this rule is in the case of an arbitral award on agreed terms.

Category B :
Question 5: A, a party to a dispute, consented to arbitration by an arbitral tribunal in accordance with the terms of the arbitration agreement. A participated in the arbitration proceedings, but later wishes to take the plea that there was no arbitration clause in her agreement with the other party to the dispute, B. Can A take such a plea?
Principle: In view of the principles of acquiescence and estoppel, it is not permissible for a party to challenge an arbitration clause after proceeding in an arbitration proceeding.
Options:
(a) A can take the plea that there was no arbitration clause at any time after the award of the tribunal.
(b) A has acquiesced to the arbitration by participating in the arbitration
proceedings, and cannot now take the plea that there was not arbitration
clause.
(c) A cannot take the plea that there was no arbitration clause, but can choose whether or not to follow the arbitral award.
(d) A can take the plea that the arbitration proceedings were not validly
conducted.
(e) A can take the plea that there was no arbitration clause only if B agrees to do the same.
Question 6: International commercial arbitration proceedings in a matter
commenced before the coming into force of the Arbitration Act. The foreign award, however, was given only after the coming into force of the Arbitration Act. The parties did not at any time have an agreement to the effect that the Arbitration Act would be excluded. A, a party to the arbitration, wishes to know whether the award
can be enforced under the provisions of the Foreign Awards (Recognition and Enforcement) Act, 1961 (“the Foreign Awards Act”).
Principle: The Arbitration Act covers domestic as well as international commercial transactions unless the parties to an international commercial arbitration, by express or implied agreement, exclude it or any of its provisions.
Options:
(a) Since the arbitration commenced before the coming into force of the
Arbitration Act, it would not apply to it.
(b) Since the parties have specifically excluded the Arbitration Act, the award
can only be enforced under the Foreign Awards Act.
(c) The parties may choose to enforce the award under either the Arbitration Act, or the Foreign Awards Act, as they wish.
(d) The award, being a foreign award, can only be enforced under the provisions of the Foreign Awards Act.
(e) The Arbitration Act would apply in this case, since there was no agreement between the parties to exclude its provisions. The award cannot be enforced under the Foreign Awards Act.
Question 7: A, a party to a conciliation proceeding, seeks to enforce the settlement agreement. The other party to the proceeding, B, has not signed the agreement. Can A have the settlement agreement enforced?
Principle: Section 73 of the Arbitration Act, mandates that the settlement agreement signed by the parties will be final and binding on the parties, and persons claiming under them respectively.
Options:
(a) A cannot have the settlement agreement enforced, since it has not been
signed by both parties.
(b) A can have the settlement agreement enforced, since Section 73 of the
Arbitration Act provides that a settlement agreement will be final and
binding on the parties.
(c) Only persons claiming under A can have the settlement agreement enforced.
(d) A can have the settlement agreement enforced by approaching a court of law, and asking that it pass a decree in terms of the agreement.
(e) A settlement agreement has the same force as an arbitral award, that is, the force of a decree of a court, and so, A can enforce it.

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