Para 9.9.6 - Arbitrator Appointment | KartavyaDesk
Original Rule Text
4. Appointment of Arbitrator: a) Appointment of Arbitrator where the applicability of section 12 (5) of the Arbitration and Conciliation Act has been waived off: i) In cases where the total value of all claims in question added together does not exceed ₹ 1,00,00,000/- (Rupees One Crore), the Arbitral Tribunal shall consist of a Sole Arbitrator who shall be a serving officer of the procuring organisation, not below Junior Administrative Grade, nominated by the Appointing Authority. The sole arbitrator shall be appointed within 60 days from the day when a written and valid demand for arbitration is received by the designated Appointing Authority. ii) In cases not covered by sub-para i) above, the Arbitral Tribunal shall consist of a panel of three serving officers not below Junior Administrative Grade or two serving officers not below Junior Administrative Grade and a retired officer (retired not below the rank of Senior Administrative Grade Officer), as the arbitrators. For this purpose, the Appointing Authority shall send a panel of at least four (4) names of Officers, which may also include the name(s) of retired Officer(s) empanelled to work as Arbitrator, to the Contractor within 60 days from the day when a written and valid demand for arbitration is received by the Appointing Authority. The contractor will be asked to suggest at least 2 names out of the panel for appointment as the Contractor’s nominee within 30 days from the date of dispatch of the request to him. The Appointing Authority shall appoint at least one out of
What This Means
Para 9.9.6 of the Manual for Procurement of Goods, 2017 outlines the process for appointing arbitrators to resolve disputes arising from government contracts. Think of it as a way to settle disagreements outside of court. This rule specifies who can be an arbitrator and how they are selected, depending on the total value of the claims involved. It's important for government employees involved in procurement and contract management to understand this process to ensure fair and efficient dispute resolution.
Specifically, the rule differentiates between cases where the total claim value is less than or equal to ₹1 crore and those exceeding that amount. For smaller claims, a single arbitrator, a serving officer of the procuring organization (at least Junior Administrative Grade), is appointed. For larger claims, a panel of three arbitrators is formed, consisting of serving officers (again, at least Junior Administrative Grade) or a combination of serving and retired officers (retired not below Senior Administrative Grade). The contractor gets a say in choosing from a panel of names provided by the government, ensuring a degree of fairness in the selection process.
This rule directly affects government departments and organizations involved in procuring goods, as well as the contractors they work with. It ensures a structured and relatively quick method for resolving disputes, preventing them from escalating into lengthy and costly legal battles. Understanding this rule is crucial for maintaining transparency and accountability in government procurement processes.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Deals with the appointment of arbitrators for dispute resolution in government procurement.
- •Distinguishes between claims under ₹1 crore (Sole Arbitrator) and those exceeding it (Panel of Arbitrators).
- •Arbitrators must be serving officers (Junior Administrative Grade or higher) or retired officers (Senior Administrative Grade or higher).
- •Contractors have a limited role in suggesting names from a panel for the Arbitral Tribunal.
- •The Appointing Authority must appoint the arbitrator(s) within specified timeframes.
Practical Example
The Ministry of Textiles has a dispute with M/s. Fabric India regarding a supply contract. The total value of Fabric India's claim is ₹75 lakhs. According to Para 9.9.6, the Appointing Authority within the Ministry must appoint a Sole Arbitrator. This arbitrator must be a serving officer of the Ministry, not below the Junior Administrative Grade. The Appointing Authority has 60 days from the date of receiving Fabric India's written demand for arbitration to make this appointment.
In another scenario, the Ministry of Defence has a dispute with Global Defence Systems where the claim value is ₹2 crores. In this case, the Appointing Authority must send a panel of at least four names of officers (serving J.A.G or higher, or retired S.A.G or higher) to Global Defence Systems within 60 days. Global Defence Systems then has 30 days to suggest at least two names from the panel. The Appointing Authority must then appoint at least one of the suggested names to the Arbitral Tribunal.
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 contractor doesn't suggest any names from the panel within the stipulated time?▼
Can a retired officer below the rank of Senior Administrative Grade be appointed as an arbitrator?▼
What is the significance of Section 12(5) of the Arbitration and Conciliation Act in relation to this rule?▼
What is the role of the 'Appointing Authority'?▼
Is there a specific format for the 'written and valid demand for arbitration'?▼
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 9.9.6 of the Manual for Procurement of Goods, 2017, if the total value of all claims in question does not exceed ₹ 1,00,00,000/-, who shall be appointed as the Sole Arbitrator?
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