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ONLINE DISPUTE RESOLUTION INDIA (ODRINDIA) ARBITRATION RULES, 2006
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Title and Scope : |
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1. (1) These rules shall be called the ODRINDIA Arbitration Rules, 2006
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(2) These rules shall apply where the parties have agreed to submit to Arbitration via ODRINDIA where |
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(a) a dispute which has arisen, or |
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(b) a dispute which may arise, between them in respect of defined legal
relationship, whether contractual or not,
shall be settled under the ODRINDIA Arbitration Rules, 2006 |
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Definitions: |
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2. In these rules unless the context otherwise requires,
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(a) “ODR” means Online Dispute Resolution. |
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(b) “ODRINDIA” means Online Dispute Resolution India whose services are available at www.odrindia.com |
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(c) “website” means the ODRINDIA website http://www.odrindia.com |
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(d) “arbitral award” means an award passed by the Arbitral Tribunal and includes
any interim award or additional award passed by the Arbitral Tribunal |
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(e) “arbitral tribunal” means a sole arbitrator; |
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(f) “Arbitration Rules” or “Rules” means the ODRINDIA Arbitration Rules, 2006; |
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(g) “arbitrator” means a person appointed as arbitrator; |
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(h) “arbitration” means online arbitration conducted electronically using the Internet medium; |
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(i) “1st Party” or “Claimant” means party wishing to commence arbitration proceedings via ODRINDIA; |
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(j) “2nd Party” or “Respondent” means party against whom arbitration reference has been filed; |
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(k) “panel of neutrals” means the panel of persons approved and maintained from time to time by ODRINDIA to act as arbitrators; |
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(l) “Form” means electronic forms to be completed by the Parties; |
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(m) “case message board” means an online message board where all statements, documents and communications are to be made asynchronously; |
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(n) “online chat” means an electronic medium where synchronous communication is made possible. |
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ARBITRATION PROCEEDINGS |
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Request for arbitration : |
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3. (1) The 1st Party or claimant initiates the arbitration by completing and submitting the 1st Party form. This in turn shall give a notice of request for arbitration to the respondent and to ODRINDIA
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(2) A notice of request for arbitration contained in the 1st Party form shall include the following :- |
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(a) email identity of the 2nd Party or the respondent |
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(b) brief account of dispute |
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(c) the general nature of the claim and where the claim is or can be quantified in terms of money, the amount of the claim; |
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(d) the relief or remedy sought; |
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(e) payment option – 1st Party, 2nd Party or Both parties |
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Agreement to arbitration: |
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4. (1) 2nd Party agrees to arbitration by completing and submitting the 2nd Party form. |
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(2) An agreement to arbitration contained in the 2nd Party form shall include the following:- |
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(a) nature of claim and relief sought by the 1st Party as stated in rule 3 |
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(b) brief response of 2nd Party |
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(c) counterclaim and where the counterclaim is or can be quantified in terms of money, the amount of claim |
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(d) the relief or remedy sought |
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(e) consent to resolve the case via ODR Arbitration |
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Number of Arbitrators : |
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5. The arbitral tribunal shall consist of a sole arbitrator |
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Appointment of Arbitrators : |
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6. (1) A person of any nationality may be an arbitrator, appointed by ODRINDIA from its Panel of Neutrals |
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(2) A decision by ODRINDIA on a matter entrusted to it by sub-rule (1) shall be final and binding on the parties. |
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(3) On receipt of agreement from the 2nd Party to engage in Online Arbitration under sub-rule (2) of rule 4 ODRINDIA will- |
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(a) make the appointment as promptly as possible, |
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(b) have regard to such considerations as are likely to secure the appointment of an
independent and impartial arbitrator. |
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(4) A substitute arbitrator will be appointed in the same manner in which his Predecessor had been appointed. |
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(5) ODRINDIA before appointing a person as arbitrator, will obtain confirmation from such person that no circumstances exist that give rise to justifiable doubts as to his independence or impartiality |
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Description of arbitrators : |
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7. Where such appointment is made, the arbitrator’s full name and profile shall be obtained by both parties from the ODRINDIA website under “Panel of Neutrals”. |
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Disclosure of Grounds of Challenge : |
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8. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose on the case message board to the parties and ODRINDIA any circumstances referred to in rule 9 unless they have already been disclosed. |
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Grounds of Challenge : |
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9. A party may challenge the appointment of an arbitrator only if circumstances exists that give rise to justifiable doubts as to his independence or impartiality |
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Challenge Procedure : |
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10. (1) A Party who intends to challenge an arbitrator shall, within 5 days after becoming aware of the constitution of the arbitral tribunal or any ground referred
to in rule 9, send any of the reasons for the challenge to the arbitral tribunal and to ODRINDIA
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(2) Unless the arbitrator challenged under sub-rule (1) withdraws from his office, or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge. |
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(3) If challenge under sub-rule (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award. |
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Failure or Impossibility to act : |
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11. (1) The mandate of an arbitrator shall terminate if-
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(a) he becomes unable to perform his functions or for other reasons fails to act without undue delay; and |
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(b) he withdraws from his office or the parties agree to the termination of his mandate. |
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(2) If under this rule or sub-rule (2) of rule 10, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this rule or sub-rule (1) of rules. |
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Termination of mandate and substitution of arbitrator : |
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12. (1) In addition to the circumstances referred to in rule 10 or rule 11, the mandate of an arbitrator shall terminate- |
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(a) where he withdraws from office for any reason; or |
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(b) by or pursuant to agreement of the parties. |
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(2) Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed in the same manner in which his predecessor had been appointed. |
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(3) Where an arbitrator is replaced under sub-rule (2) the substituted arbitrator shall be entitled to resume the said arbitration proceedings from the stage at which it was left by his predecessor or fresh, as the case may be, at the discretion of ODRINDIA. |
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Interim measures by arbitral tribunal : |
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13. (1) The arbitral tribunal may, at the request of a party, order a party, to take any interim measure of protection in respect of the subject-matter of the dispute as it may consider necessary, |
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(2) The arbitral tribunal may require a party to provide appropriate security in connection with a measure ordered under sub-rule(1). |
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Representation of Parties : |
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14. Each party shall advise, by posting on the case message board, the other party, ODRINDIA and the arbitral tribunal of:-
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(a) the names and addresses of persons who will represent or assist him, and |
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(b)the capacity in which those persons will act. |
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Equal treatment of parties : |
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15. The parties shall be treated with equality and each party shall be given due opportunity to present their case. |
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Determination of rules of procedure : |
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16. (1) Subject to these rules, the arbitral tribunal may conduct its proceedings in the manner it considers appropriate. |
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(2) The power of the arbitral tribunal under sub-rule (1) includes the power to determine the admissibility, relevance, materiality and weight of any evidence. |
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Seat of arbitration : |
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17. The place of arbitration shall be Chennai or such other place where any of the Regional Offices of ODRINDIA is situated as the parties may agree; Provided that ODRINDIA may decide such other place of arbitration as it thinks fit. |
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Language : |
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18. The Language to be used in the arbitral proceedings shall be the English Language. |
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Commencement of Proceedings: |
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19. The arbitral proceedings shall commence on the date the parties receive an email from ODRINDIA informing parties to proceed with the arbitration. |
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Pleadings: |
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20. (1) Within 7 days of the receipt of email from ODRINDIA informing parties to proceed with the arbitration, the 1st Party and 2nd Party shall post on the ODRINDIA case message board a statement of the facts supporting the claim, statement of defence containing replies to the claim and counterclaim if any, the points at issue and the relief or remedy sought.
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(2) Within fifteen days of the receipt of statement of defence of the respondent, the 1st Party shall post on the case message board the rejoinder if any, to the said statement of defence and statement of defence to the counter claim. |
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(3) Within fifteen days of the receipt of statement of defence to the counterclaim, the respondent shall post on the case message board the rejoinder if any, to the said statement. |
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(4) The parties shall submit with their statements all documents they consider to be relevant. |
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(5) Either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it. |
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(6) Not withstanding the time stipulated in sub-rules 1, 2 & 3 above the arbitral tribunal at its sole discretion may extend the time as it deems fit. |
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Mode of Prodeedings: |
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21. (1) The proceedings shall be conducted on the basis of documents and other materials. The entire proceedings shall be conducted online via the Internet. There shall be no oral hearings. There shall be no in-person hearings.
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(2) All proceedings will be conducted online via the case message board and online chat. All documents pertaining to the proceedings, including the request for Arbitration, the Response, all statements, documentary evidence, written communications and notifications shall be posted on the case message board. |
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(3) All statements, documents or other information supplied to, or applications made to the arbitral tribunal by one party, shall be communicated to the other party, and any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties. |
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(4) The Parties and the Arbitral Tribunal are responsible for logging on to the case message board on a regular basis. |
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Default: |
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22. Where, without showing sufficient cause: -
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(a) the 1st Party fails to communicate his statement of claim in accordance with sub-rule (1) of rule 20, the arbitral tribunal shall terminate the proceedings; |
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(b) the respondent fails to communicate his statement of defence or the claimant fails to communicate his defence to the counter-claim in accordance with rule 20, the arbitral tribunal shall continue the proceedings without treating that failure in itself as an admission of the allegations made in the statement of claim or of counter-claim as the case may be; |
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(c) a party fails to proceed or submit documentary evidence, the arbitral tribunal may continue the proceedings and make the arbitral award on the evidence before it. |
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Appointment of expert: |
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23. The arbitral tribunal may- |
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a) appoint one or more experts from the panel of experts to report to it on specific issues to be determined by the arbitral tribunal, and |
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(b) require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection. |
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Applicability of substantial Law: |
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24. (1) Where the place of arbitration is situated in India:- |
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(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for the time being in force in India; |
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(b) in an international commercial arbitration,- |
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(i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute; |
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(ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws/rules; |
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(iii) failing any designation of the law under clause (a) by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute. |
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(2) The arbitral tribunal will decide in justice and good faith or on the basis of amicable settlement only if the parties have expressly authorised it to do so. |
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(3) In all cases, the arbitral tribunal will decide in accordance with the terms of the contract and will take into account the usages of the trade applicable to the transaction. |
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Decision making Process : |
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25. The decision shall be made by the sole arbitrator on the basis of the statements and documents submitted and in accordance with these Rules and any rules and principles of law that it deems applicable. |
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Compromise : |
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26. (1) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.
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(2) An arbitral award on agreed terms shall be made in accordance with rule 29 and shall state that it is an arbitral award. |
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(3) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award. |
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Close of Proceedings |
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27.When it is satisfied that the parties have had a reasonable opportunity to present their case, the Arbitral Tribunal shall declare the proceedings closed. Thereafter, no further submission or statements shall be made, or evidence produced, unless requested or authorized by the Arbitral Tribunal. |
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Time Limit for the Award |
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28.(1)The time limit within which the Arbitral Tribunal must render its final Award is 4 months or 122 days from the date of commencement of Arbitration proceedings. |
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(2) ODRINDIA may extend this time limit pursuant to a reasoned request from the Arbitral Tribunal or on its own initiative if it decides it is necessary to do so. |
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Form and contents of arbitral award : |
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29. (1) An arbitral award shall be made in writing and shall be signed by the arbitrator. |
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(2) The arbitral award shall state the reasons upon which it is based, unless- |
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(a) the parties have agreed that no reasons are to be given, or |
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(b) the award is an arbitral award on agreed terms under rule 26 |
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(3) The arbitral tribunal shall state the date and the place of arbitration referred to in rule 17 and the award shall be deemed to have been made at that place. |
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(4) After the arbitral award is made, a signed copy thereof shall be sent to each party. |
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(5) Where so requested by a party, the arbitral tribunal may, at any time during the arbitral proceedings, make an interim award on any matter with respect to which it may make a final arbitral award. |
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Interest : |
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30. (1) Where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the dates on which the cause of action arose and the date on which the award is made. |
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(2) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of eighteen per cent per annum from the date of the award to the date of payment. |
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Fees : |
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31. (1) The fees of arbitration shall be fixed by ODRINDIA in accordance with the fees specified in “FEES” (http://www.odrindia.com/fee.php) on the ODRINDIA website |
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(2) Parties may decide which party is to bear the costs of the proceedings |
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(a) 1st Party OR |
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(b) 2nd party OR |
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(c) Both parties equally |
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Termination of Proceedings : |
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32. (1) The arbitral proceedings shall stand terminated on making of the final arbitral award or by an order of the arbitral tribunal under sub-rule (2). |
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(2) The arbitral tribunal shall make an order for the termination of the arbitral proceedings where- |
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(a) the claimant withdraws the claim, unless the respondent objects to the order and the arbitral tribunal recognizes a legitimate interest on the part in obtaining a final adjudication of the dispute, |
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(b) the parties agree on the termination of the proceedings, or |
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(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. |
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(3) The arbitral tribunal shall post the order on the case message board and send a copy of the order made under sub-rule (2) to each party. |
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(4) Subject to rule 33 and any order of court of competent jurisdiction in proceedings before it in respect of the award, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings. |
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Correction and interpretation of award & additional award : |
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33. (1) Within fifteen days from the receipt of the arbitral award,- |
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(a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of similar nature occurring in the award |
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(b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award. |
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(2) If the arbitral tribunal considers the request made under sub-rule (1) to be justified, it shall make the correction or give the interpretation within fifteen days from the receipt of the request and the interpretation shall form, part of the arbitral award. |
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(3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-rule (1), on its own initiative, within fifteen days from the date of the arbitral award. |
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(4) A party, with notice to the other party, may request, within fifteen days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award. |
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(5) If the arbitral tribunal considers the request made under sub-rule (4) to be justified, it shall make the additional arbitral award within thirty days from the receipt of such request. |
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(6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-rule (2) or sub-rule (5), as the case may be. |
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(7) Rule 29 shall, so far as may be, apply to a correction or interpretation of the arbitral award / or to an additional arbitral award made under this rule. |
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Amendment: |
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34. ODRINDIA may revise, amend or alter these rules or the schedule of fees and other monies to be charged and paid as and when expedient and necessary. |
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Interpretation : |
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35. If any question relating to interpretation of these rules or any procedural matters there under, the decision of ODRINDIA shall be final and binding on the parties. |
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Exclusion of liability: |
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36. Neither ODRINDIA, nor http://www.odrindia.com, nor its Directors, its members, administrators, employees, nor the arbitral tribunal or arbitrators, or any member thereof shall be liable to any person for any act or omission in whatever capacity they may have acted in connection with or in relation to the arbitration. No party shall bring or prosecute any suit or proceedings whatever in respect thereof. |
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