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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Kaveri Steels Ltd and its workers' representatives sign a voluntary arbitration agreement on a bonus dispute. A manager asks whether the Arbitration and Conciliation Act, 1996 will govern the proceedings. What is the correct position under the Industrial Relations Code, 2020?

The Arbitration and Conciliation Act, 1996 does not apply. The Industrial Relations Code, 2020 expressly provides that nothing in that Act applies to arbitrations under its voluntary arbitration section, so such proceedings follow the Code and its rules instead.

  1. AThe 1996 Act governs, but only for the appointment of the arbitrators
  2. BThe 1996 Act governs fully, as the agreement is in writing
  3. CThe 1996 Act applies only if the arbitrators are an even number
  4. DNothing in the 1996 Act applies to arbitrations under this section of the CodeCorrect

Explanation

The Code expressly states that nothing in the Arbitration and Conciliation Act, 1996 applies to arbitrations under the voluntary arbitration provision. The written agreement is required by the Code itself and does not bring in the 1996 Act. The even-number rule concerns an umpire, not the applicability of that Act.

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