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Para 9.9.10 - Arbitration Procedure | KartavyaDesk

Goods Manual

Original Rule Text

9.9.10 The Arbitral Procedure 1. Effective Date of Entering Reference: The arbitral tribunal shall be deemed to have entered the reference on the date on which the arbitrator(s) have received notice of their appointment. All subsequent time limits shall be counted from such date. 2. Seat and Venue of Arbitration: The seat of arbitration shall be the place from which the Letter of Award or the contract is issued. The venue of arbitration shall be the same as the seat of arbitration. However, in terms of section 20 of The Arbitration Act, the arbitrator, at his discretion, may determine a venue other than the seat of the arbitration without in any way affecting the legal jurisdictional issues linked to the seat of the arbitration. The Arbitral Tribunal shall decide any matter related to Arbitration not covered under this Arbitration Agreement as per the provisions of The Arbitration Act. 3. If the Adjudication and/ or Mediation mechanisms had not been exhausted before such reference to Arbitration, the Arbitrator should ask the aggrieved party to approach the designated authority for such mechanisms before the Arbitration proceedings are started. 4. The claimant shall submit to the Arbitrator(s) with copies to the respondent his claims stating the facts supporting the claims along with all the relevant documents and the relief or remedy sought against each claim within 30 days from the date of appointment of the Arbitral Tribunal unless it has granted an extension. 5. On receipt of such claims, the respondent shall submit its defence statement and counterclaim (s), if any, within 60 days of receipt of the copy of claims, unless the Arbitral Tribunal has granted an extension. 6. No new claim shall be added during proceedings by either party. However, a party may amend or supplement the original claim or defence thereof during arbitration proceedings subject to acceptance by the Tribunal having due regard to the delay in making it. 7. Statement of claims, counterclaims and defence shall be completed within six months from the effective reference date. 8. Oral arguments to be held on a day-to-day basis: Oral arguments as far as possible shall be heard by the arbitral tribunal on a day-to-day basis, and no adjournments shall be granted without sufficient cause. The arbitrator (s) may impose an exemplary cost on the party seeking adjournment without sufficient cause.

What This Means

Para 9.9.10 of the Manual for Procurement of Goods, 2017 outlines the procedure for arbitration when disputes arise in government contracts. Think of it as the rulebook for resolving disagreements outside of court. It covers everything from when the arbitration officially starts to how claims and defenses are presented, and even where the arbitration meetings will be held. This rule ensures a structured and timely process for resolving contract disputes, aiming for fairness and efficiency. It affects all parties involved in government procurement contracts, including government departments and the vendors they contract with.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • Arbitration starts when the arbitrator receives notice of their appointment; all deadlines are calculated from this date.
  • The 'seat' of arbitration is where the contract was issued, but the arbitrator can choose a different 'venue' for meetings without changing the legal jurisdiction.
  • Claimants must submit their claims with supporting documents within 30 days of the arbitrator's appointment (unless an extension is granted).
  • Respondents have 60 days to submit their defense and counterclaims after receiving the claimant's claims (unless an extension is granted).
  • Oral arguments should be heard daily if possible, and adjournments should only be granted for valid reasons.

Practical Example

The Ministry of Textiles awarded a contract to 'WeaveWell Industries' for supplying uniforms. A dispute arose regarding the quality of the fabric. WeaveWell invoked the arbitration clause. The Letter of Award was issued from Delhi. Therefore, Delhi is the 'seat' of arbitration. The arbitrator, after appointment, received the notice on July 1st, 2024. This is the effective date. WeaveWell has until July 31st, 2024, to submit their claim. The Ministry of Textiles then has until August 30th, 2024, to submit their defense. The arbitrator, considering logistical convenience, decides to hold the hearings in Mumbai, but Delhi remains the legal 'seat' of arbitration.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if the claimant doesn't submit their claims within 30 days?
The Arbitral Tribunal may grant an extension. However, consistently delaying the process can negatively impact the claimant's case.
Can the venue of arbitration be different from the seat of arbitration?
Yes, the arbitrator has the discretion to determine a venue other than the seat of arbitration, but this does not affect the legal jurisdictional issues linked to the seat.
What if the contract doesn't specify a clear 'seat' of arbitration?
The location from which the Letter of Award or the contract was issued will be considered the seat of arbitration. If this is unclear, the Arbitral Tribunal will need to determine the seat based on the circumstances.
Can I add a new claim after the initial 30-day period?
No new claims can be added. However, you can amend or supplement your original claim or defense with the Tribunal's acceptance, considering the delay in making the change.
What is the purpose of having a defined 'seat' of arbitration?
The 'seat' of arbitration determines the legal jurisdiction and the applicable laws governing the arbitration process.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 9.9.10 of the Manual for Procurement of Goods, 2017, on what date is the arbitral tribunal considered to have 'entered the reference'?

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