All questions of Unit 3 - Arbitration, Tribunal Adjudication and Alternative Dispute Resolution for Humanities/Arts Exam

The conciliation proceedings shall be terminated ______________.
  • a)
    By signing of the settlement agreement by the parties, on the date of agreement
  • b)
    By written declaration of the parties and the conciliator to terminate the conciliation proceedings on the date of declaration
  • c)
    By written declaration of the parties addressed to the conciliator to the effect that conciliation proceedings are terminated, on the date of declaration
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Simran Rane answered
By signing of the settlement agreement by the parties, on the date of agreement
When the parties involved in the conciliation process reach a settlement agreement and sign it, the conciliation proceedings come to an end on the date of the agreement. This signifies that the parties have successfully resolved their dispute with the help of the conciliator.

By written declaration of the parties and the conciliator to terminate the conciliation proceedings on the date of declaration
If both the parties and the conciliator mutually decide to terminate the conciliation proceedings through a written declaration, the process comes to an end on the date specified in the declaration. This option allows for a formal and agreed-upon conclusion to the conciliation process.

By written declaration of the parties addressed to the conciliator to the effect that conciliation proceedings are terminated, on the date of declaration
Alternatively, if the parties themselves decide to terminate the conciliation proceedings by sending a written declaration to the conciliator, the process is concluded on the date mentioned in the declaration. This option gives the parties the autonomy to end the conciliation process on their terms.
Therefore, the conciliation proceedings can be terminated by any of the above methods, depending on the agreement between the parties and the conciliator involved in the process. Each option provides a formal and recognized way to bring the conciliation process to a close.
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The Central Administrative Tribunal adjudicates disputes with respect to the recruitment and conditions of service of persons appointed:
1) To public services and posts in connection with the affairs of the Union.
2) Members of the defence forces.
3) Officers and servants of the Supreme Court or of any High Court in India.
Select the correct answer using the code given below.
  • a)
    1 and 2
  • b)
    1 only
  • c)
    2 only
  • d)
    2 and 3
Correct answer is option 'B'. Can you explain this answer?

Amita Das answered
The Central Administrative Tribunal's function is to adjudicate the disputes with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or state or other local authorities within the territory of India od under the control of Government of India.

The Central Administrative Tribunal and State Administrative Tribunals were set up through a law passed in _____.
  • a)
    1985
  • b)
    1986
  • c)
    1987
  • d)
    1991
Correct answer is option 'A'. Can you explain this answer?

The Central Administrative Tribunal (CAT) and State Administrative Tribunals (SATs) were established through the Administrative Tribunals Act, 1985. This act was passed by the Parliament of India in order to provide an effective and speedy resolution to disputes relating to recruitment, service conditions, and other administrative matters of public servants.

The Administrative Tribunals Act, 1985:
The Administrative Tribunals Act, 1985 was enacted with the objective of reducing the burden on regular courts and ensuring expeditious disposal of cases related to public servants. The Act aimed to provide an alternative mechanism for resolving disputes in a specialized forum, thereby enabling faster justice delivery.

Establishment of Central Administrative Tribunal (CAT):
The CAT was established under the provisions of the Administrative Tribunals Act, 1985. It was set up to adjudicate matters arising out of service disputes and other administrative issues concerning central government employees. The CAT has jurisdiction over cases related to recruitment, promotion, disciplinary matters, and other service-related disputes of central government employees.

Establishment of State Administrative Tribunals (SATs):
The Administrative Tribunals Act, 1985 also provided for the establishment of State Administrative Tribunals (SATs) in each state. The SATs were created to handle similar service disputes and administrative matters pertaining to state government employees. Each SAT has jurisdiction over the respective state and is responsible for resolving disputes concerning recruitment, promotion, and other service-related issues of state government employees.

Functions and Powers of CAT and SATs:
- The CAT and SATs have the power to hear and dispose of disputes arising out of service matters of government employees.
- They have the authority to interpret and apply the provisions of the Constitution, statutes, rules, and regulations relevant to the case.
- The tribunals can also provide relief in the form of reinstatement, promotion, or any other suitable remedy to the aggrieved party.
- The decisions of the CAT and SATs are final and binding, subject to the jurisdiction of the respective High Courts and the Supreme Court.

Conclusion:
The Central Administrative Tribunal (CAT) and State Administrative Tribunals (SATs) were established through the Administrative Tribunals Act, 1985. These tribunals play a crucial role in resolving service disputes and administrative matters of government employees, ensuring speedy justice and reducing the burden on regular courts.

Conciliation is governed by _____________ of Civil Procedure Code.
  • a)
    Section 21
  • b)
    Section 40
  • c)
    Section 89
  • d)
    Section 63
Correct answer is option 'C'. Can you explain this answer?

Anjali Sharma answered
Section 89 of the Code of Civil Procedure, 1908 embodies the legislative mandate to the court to refer sub judice disputes to various ADR mechanisms enunciated therein where it finds it appropriate to do so, in order to enable the parties to finally resolve their pending cases through well established dispute resolution methods other than litigation. It states that where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observations and after receiving the observations of the parties, the Court may re-formulate the terms of a possible settlement and refer the same for
(a) arbitration;
(b) conciliation;
(c) judicial settlement including settlement through Lok Adalat; or
(d) mediation.

What is the meaning of Lokyukta ?
  • a)
    People's voice
  • b)
    People's caretaker
  • c)
    Person appointed by people
  • d)
    None of these
Correct answer is option 'C'. Can you explain this answer?

The Lokayukta is an anti-corruption ombudsman organization in the Indian states. Once appointed, Lokayukta can not be dismissed nor transferred by the government, and can only be removed by passing an impeachment motion by the state assembly. The term Lokayukta comes from a Sanskrit term which means "appointed by the people". 

The Arbitrator in respect of escalation cost __________
  • a)
    has no jurisdiction to proceed inherently
  • b)
    has to proceed only within scope of Contract Act
  • c)
    has to proceed only within scope of
  • d)
    has jurisdiction to proceed inherently
Correct answer is option 'D'. Can you explain this answer?

Understanding the Role of the Arbitrator in Escalation Costs
The correct answer is that the arbitrator "has jurisdiction to proceed inherently." This means that the arbitrator has the authority and discretion to address escalation costs based on the contractual obligations and the circumstances surrounding the dispute.
Key Points
- Inherent Jurisdiction
- Arbitrators possess the ability to make decisions based on the terms of the contract and applicable laws.
- This authority allows them to interpret the contract's provisions regarding cost escalations.
- Scope of Contractual Authority
- The arbitrator's jurisdiction is derived from the contract itself.
- They can interpret clauses related to pricing, cost adjustments, and escalation, ensuring that all parties adhere to agreed-upon terms.
- Flexibility in Decision-Making
- An arbitrator's inherent jurisdiction provides flexibility to address unique circumstances that may arise during the execution of the contract.
- They can consider evidence and arguments presented by both parties, leading to a fair resolution.
- Limitations of Jurisdiction
- Although arbitrators have inherent jurisdiction, they must still operate within the framework of the contract and applicable laws.
- They cannot exceed their authority or make decisions that are outside the scope defined by the contractual agreement.
Conclusion
In summary, the arbitrator's inherent jurisdiction to proceed with matters related to escalation costs emphasizes their critical role in dispute resolution. By relying on the contract's terms and their interpretative powers, arbitrators ensure that disputes are resolved fairly and justly, reflecting the intentions of the contracting parties.

Section 73 lays down the provisions for ______________.
  • a)
    Costs
  • b)
    Termination of conciliation proceedings
  • c)
    Confidentially
  • d)
    Settlement agreement
Correct answer is option 'D'. Can you explain this answer?

Simran Rane answered
Termination of conciliation proceedings:
Section 73 of the Arbitration and Conciliation Act, 1996, deals with the provisions for the settlement agreement in conciliation proceedings. Here's a detailed explanation of this section:

Settlement agreement:
- Section 73 states that if during the conciliation proceedings, the parties reach a settlement agreement, the conciliator shall draw up the settlement agreement and have it signed by the parties.
- The settlement agreement shall be final and binding on the parties, and they shall carry it out in good faith.
- Once the settlement agreement is signed, the conciliator shall terminate the conciliation proceedings.

Legal implications:
- The settlement agreement reached during conciliation proceedings has the same legal status and effect as if it were an arbitral award on agreed terms.
- The settlement agreement can be enforced as if it were a decree of the court.

Confidentiality:
- Section 73 also emphasizes the confidentiality of the conciliation process. The conciliator and the parties involved in the conciliation proceedings must maintain confidentiality regarding all matters relating to the proceedings.
- The settlement agreement is also kept confidential unless its disclosure is necessary for implementation and enforcement.
In conclusion, Section 73 of the Arbitration and Conciliation Act, 1996, establishes the legal framework for the termination of conciliation proceedings through a settlement agreement. It underscores the finality and enforceability of the settlement agreement while stressing the importance of maintaining confidentiality throughout the conciliation process.

The evidence which is inadmissible under section 81 is _____________.
  • a)
    Admissions made by other party in the course of the conciliation proceedings
  • b)
    Proposals made by the conciliator
  • c)
    Views expressed by the conciliator in course of conciliation proceedings
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?

Kiran Mehta answered
Under section 81 of the act there are certain kinds of evidence which are inadmissible which include:
  • Views expressed or suggestions made by the other party in respect of a possible settlement of the dispute;
  • Admissions made by the other party in the course of the conciliation proceedings;
  • Proposals made by the conciliator;
  • The fact that the other party had indicated his willingness to accept a proposal for settlement made by the conciliator. 

The 'Principle of Co-operation' is laid down under _______________.
  • a)
    Section 71
  • b)
    Section 70
  • c)
    Section 69
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?

Rohit Sharma answered
In Conciliation proceedings under section 71, the parties shall in good faith cooperate with the conciliator and, in particular, shall endeavor to comply with requests by the conciliator to submit written materials, provide evidence and attend meetings.

Which of the following is incorrect statement?
  • a)
    The conciliator shall assist the parties in an independent and impartial manner 
  • b)
    The conciliator can make proposals for settlement but it has to be accompanied by the statement of reasons 
  • c)
    The conciliator shall be guided by principle of objectivity, fairness and justice 
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?

Amita Das answered
As per section 67(4) of the act, the conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons. Hence, B is the correct option.

Which of the following matters cannot be referred to ADR
  • a)
    Customer complaints
  • b)
    Civil Cases
  • c)
    Cases of tradfe disputes criminal cases
  • d)
    Criminal Case
Correct answer is option 'D'. Can you explain this answer?

Mansi Banerjee answered
The correct answer is option 'D' - Criminal Case.

ADR, which stands for Alternative Dispute Resolution, is a method of resolving disputes outside of the traditional court system. It involves parties coming together with the help of a neutral third party to find a mutually agreeable solution to their dispute. ADR methods include negotiation, mediation, and arbitration.

While ADR can be used to resolve a wide range of disputes, there are certain matters that cannot be referred to ADR, and one of them is criminal cases.

Explanation:
1. ADR and its Purpose:
- Alternative Dispute Resolution (ADR) refers to the methods used to resolve disputes outside of the courtroom.
- The purpose of ADR is to provide a quicker, less formal, and more cost-effective way to resolve disputes compared to traditional litigation.
- It promotes the resolution of conflicts through negotiation, mediation, or arbitration.

2. ADR for Customer Complaints:
- Customer complaints can often be resolved through ADR methods.
- For example, if a customer has a complaint against a company regarding a faulty product or unsatisfactory service, ADR can be used to negotiate a resolution or seek mediation to find a mutually agreeable solution.
- ADR is particularly useful for resolving disputes between businesses and their customers, as it can help maintain customer satisfaction and avoid the need for lengthy court proceedings.

3. ADR for Civil Cases:
- ADR is commonly used for civil cases, which involve disputes between individuals or organizations in areas such as contract law, property law, or personal injury.
- Civil cases can be referred to ADR methods like negotiation, mediation, or arbitration to reach a settlement without going to court.
- ADR offers parties more control over the resolution process and allows them to explore creative solutions that may not be available in a courtroom setting.

4. ADR for Trade Disputes:
- Trade disputes between businesses or organizations can also be referred to ADR.
- These disputes may involve contract breaches, disagreements over terms and conditions, or conflicts regarding intellectual property rights.
- ADR methods like negotiation or mediation can help parties find a mutually agreeable solution and preserve business relationships.

5. ADR and Criminal Cases:
- Criminal cases involve offenses against society and are prosecuted by the state in criminal courts.
- ADR is not suitable for criminal cases because they involve allegations of crimes that are considered offenses against the public.
- The criminal justice system operates differently from civil cases, and the focus is on determining guilt or innocence and imposing penalties rather than resolving disputes between parties.
- Criminal cases require adherence to legal procedures, evidence presentation, and the involvement of prosecutors, defense attorneys, judges, and juries.

In conclusion, while ADR can be used for customer complaints, civil cases, and trade disputes, it is not appropriate for criminal cases. ADR focuses on resolving disputes between parties, while criminal cases involve offenses against society and require adherence to specific legal processes.

The present Arbitration and Conciliation Act of 1996 is based on ______.
  • a)
    Constitution of India
  • b)
    Guidelines of Supreme Court of India
  • c)
    European Commercial Arbitration Procedure
  • d)
    UNCITRAL, 1985
Correct answer is option 'D'. Can you explain this answer?

Rohit Sharma answered
The Arbitration and Conciliation Act, 1996 has repealed the Arbitration Act, 1940 and also the Acts of 1937 and 1961, consolidated and amended the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards and also defines the law relating to conciliation, providing matters connected therewith and incidental thereto on the basis of the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1985.

Scope and object of section 8 of the Arbitration and Conciliation Act, 1996 is _________________.
  • a)
    The same as that of section 34 of the Arbitration Act, 1940
  • b)
    different from that of section 34 of the Arbitration Act, 1940
  • c)
    Same or different from that of section 34 of the Arbitration Act, 1940, depending on the facts and circumstances of the case
  • d)
    Either (A) or (C)
Correct answer is option 'B'. Can you explain this answer?

Arun Yadav answered
Section 8 of the Arbitration and Conciliation Act, 1996,  a judicial authority before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration. If the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made. Section 34 of Arbitration and Conciliation Act, 1940, says that where any party to an arbitration agreement or any person claiming under him commences any legal proceedings against any other patty to the agreement or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings may, at any time before filing a written statement or taking any other steps in' the proceedings, apply to the judicial authority before which the proceedings are pending to stay the proceedings; and if satisfied that there is no sufficient reason why the matter should not be referred in accordance with the arbitration agreement and that the applicant was, at the time when the proceedings were commenced. and still remains, ready and willing to do all things necessary to the proper conduct of the arbitration, such authority may make an order staying the proceedings.

A person appointed by two parties to settle a dispute is known as ______.
  • a)
    Attorney
  • b)
    Arbitrator
  • c)
    Advocate
  • d)
    Solicitor
Correct answer is option 'B'. Can you explain this answer?

Rohit Sharma answered
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.

Which among the following options is the main purpose of the Arbitration and Conciliation Act, 1996?
  • a)
    To comprehensively cover international and commercial arbitration and also conciliation as also domestic arbitration and conciliation
  • b)
    To cover only domestic arbitration and conciliation
  • c)
    To cover only international arbitration
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?

Rajesh Gupta answered
The Arbitration and Conciliation Act, 1996 has repealed the Arbitration Act, 1940 and also the Acts of 1937 and 1961, consolidated and amended the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards and also defines the law relating to conciliation, providing matters connected therewith and incidental thereto on the basis of the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1985.

In a case relating to arbitration the arbitral award was remitted under section 1616 of the Arbitration Act, 1940. The date of award was 11st June, 1992. The Arbitration and Conciliation Act came into force on 2222 August, 1996. The validity of award can be challenged under the __________________.
  • a)
    Limitation Act,1963
  • b)
    General Clauses Act, 1897
  • c)
    Arbitration Act, 1940
  • d)
    Arbitration and Conciliation Act, 1996 only
Correct answer is option 'C'. Can you explain this answer?

Rohit Sharma answered
If we go through section 8585 of the Arbitration and Conciliation Act, 1996, we will find that old act of 1940 has been repealed and all the provisions of the 1996 act shall be enforceable on and after the act is enforced and also the provisions of 1940 act shall apply in relation to arbitral proceedings which commenced before the $$1996$$ Act came into force unless otherwise agreed by the parties. Hence, any award passed before the 1996 act came into force shall be dealt with provisions of 1940 act.

Which one of the following is an incorrect statement?
  • a)
    Conciliation means settling of disputes without litigation 
  • b)
    The conciliators do not engage in any formal hearing 
  • c)
    The party comes to settlement only when the award is made by the conciliator 
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?

Anjali Sharma answered
Conciliation is one of the non-binding and informal procedures where an impartial third party, known as the conciliator, assist the parties to a dispute in reaching a mutually agreed settlement of the dispute without any litigation. And as conciliation is non-binding in nature, there is no compulsion on the party to reach a settlement only after award made by the Conciliator. Hence, C is the correct option.

When was International Telecommunications Union established?
  • a)
    1864
  • b)
    1865
  • c)
    1869
  • d)
    1876
Correct answer is option 'B'. Can you explain this answer?

Anjali Sharma answered
International Telecommunications Union was established as International Telegraph Union on 1717th May, 1865 at Paris. It is a specialised agency of the UN which deals with issues related to Inernational Telecommunications and information technology. The International Telegraph Union merged with International Radiotelegraph Union which was unofficially established, in the year 1932 to make International Telecommunication Union which is now headquartered at Geneva, Switzerland.

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