Para 9.7.6 — NONCONSULT_MANUAL

9.7.6. Foreign Arbitration 1. The Arbitration and Conciliation Act 1996 has provisions for international commercial arbitration, which shall be applicable if one of the parties has its central management and control in any foreign country. 2. When the contract is with a foreign service provider, the service provider has the option to choose either the Indian Arbitration and Conciliation Act, 1996 or arbitration in accordance with the provisions of the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules. 3. The arbitration clause with foreign firms should be in the form of self-contained agreements. This is true especially for large value contracts or those for costly plant and machinery. The venue of arbitration should be in accordance with UNCITRAL or arbitration rules of India, whereby it may be in India or in any neutral country.

9.7.7. Notice for Arbitration 1. ‘The Appointing Authority,’ to appoint the arbitrator shall be Head of the Procuring Organisation named in the contract and includes if there be no such authority, the officer who is for the time being discharging the functions of that authority, whether in addition to other functions or otherwise. 2. In the event of any dispute as per para 9.7.1 above, if the Adjudicator fails to decide within 60 days (as referred in para 9.7.3 above), or the mediation is terminated (as referred in sub-para 9.7.4 above) then, parties to the contract, after 60 days but within 120 days of ‘Notice of Dispute” shall request the Appointing Authority through a “Notice for Arbitration” in writing requesting that the dispute or difference be referred to arbitration. 3. The “Notice for arbitration” shall specify the matters in question or subject of the dispute or difference indicating the relevant contractual clause, as well as the amount of claim item-wise.

9.7.8. Reference to Arbitration After appointing Arbitrator(s), the Appointing Authority shall refer the dispute to them. Only such dispute or difference shall be referred to arbitration regarding which the demand has been made, together with counter-claims or set off. Other matters shall be beyond the jurisdiction of Arbitrator(s)