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CS Professional · Arbitration, Mediation and Conciliation · Conceptual Framework of International Commercial Arbitration

In an ad hoc arbitration seated in Mumbai between Sahyadri Exports Ltd (India) and Pacific Traders Inc (a company incorporated in Singapore), the Act leaves the parties free to decide who will determine a procedural issue. They authorise a named arbitral institution to decide it. Is this permissible?

Yes. Where Part I leaves parties free to determine an issue, except under section 28, they may authorise any person, including an institution, to decide it. This lets even ad hoc arbitrations use an institution for specific tasks without needing court permission.

  1. ANo, only the arbitral tribunal can decide such issues
  2. BNo, an institution can act only if the arbitration is administered by it from the start
  3. CYes, but only after the Court gives permission
  4. DYes, freedom to determine an issue includes the right to authorise any person, including an institution, to determine itCorrect

Explanation

Section 2(6) provides that where Part I, except section 28, leaves the parties free to determine an issue, that freedom includes authorising any person, including an institution. This allows ad hoc proceedings to use an institution for specific tasks. No court permission is required.

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