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Abhishek and Ankita were involved in a business where a dispute arose and the same was referred to arbitration. The award given by the arbitrator was in the form of a wager. Identify the ground on which the award can be set aside:
  • a)
    Bias of arbitrator
  • b)
    Dispute outside the scope of arbitration agreement
  • c)
    Violation of public policy
  • d)
    Improper appointment of arbitrator
Correct answer is option 'C'. Can you explain this answer?
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Abhishek and Ankita were involved in a business where a dispute arose ...
Basis for Setting Aside an Arbitration Award

In the given scenario, where Abhishek and Ankita are involved in a business dispute and the award given by the arbitrator was in the form of a wager, the ground on which the award can be set aside is the violation of public policy.

Violation of Public Policy
The violation of public policy is a recognized ground for setting aside an arbitration award. Public policy refers to the principles and values that are considered fundamental to a society or jurisdiction. When an arbitration award is contrary to public policy, it means that the decision goes against the basic principles that underpin the legal system and the interests of the public.

In the context of arbitration, public policy violations can occur in different forms, such as:

1. Criminal Activity: If the arbitration award promotes or condones illegal activities, it can be considered a violation of public policy. For example, if the wager in the award involves engaging in illegal activities or contravenes criminal laws, it would be against public policy.

2. Discrimination: If the award discriminates against a specific group of people or violates principles of equality and non-discrimination, it can be set aside on the grounds of public policy. Discriminatory decisions that infringe upon human rights or promote prejudice are contrary to the fundamental values of society.

3. Unconscionable Agreements: If the arbitration award enforces an agreement that is unconscionable or highly unfair, it can be considered a violation of public policy. This includes agreements that are excessively one-sided, oppressive, or obtained through duress or undue influence.

4. Immoral or Offensive Acts: If the award involves acts that are deemed immoral or offensive, it can be set aside on the grounds of public policy. This may include awards that condone or encourage behavior that is generally considered morally reprehensible or offensive to societal norms.

In the given scenario, where the award was in the form of a wager, it is likely that the arbitrator's decision violates public policy. Wagering, which involves placing bets or gambling, is often subject to legal restrictions and is not considered a legitimate means of resolving disputes. Therefore, the award can be challenged and set aside on the basis of violating public policy.

In conclusion, the ground on which the arbitration award can be set aside in this scenario is the violation of public policy. The award in the form of a wager goes against the fundamental values and principles of the legal system and is contrary to the interests of the public.
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Abhishek and Ankita were involved in a business where a dispute arose ...
A wager is opposed to public policy, so the award can be set aside on the ground of violation of public policy. An arbitral award rendered in an arbitration may be struck down or invalidated by the courts. The grounds of such invalidation are limited to: incapacity of a party to enter into arbitration agreement in the first place, improper appointment of arbitrator, dispute falling outside the terms of the arbitration agreement, bias on the part of arbitrator, award violating public policy at large.
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Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.Chand was alleged by Suraj on the acquisition of his house in Delhi which was decided to be dealt under the Arbitration Act. The arbitrator asked Chand to submit his statement within a month. Chand failed to submit his statement within the stipulated time. The arbitrator terminated the proceedings on account that Chand failed to submit the statement. Is the termination valid?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.Rama and Bose agreed to an arbitration trial. On conclusion of the arbitration trial, Rama was awarded to indemnify Bose with Rs. 50,000 by the end of February 2020. During February 2020, Rama refused to pay Bose the said amount. Rama in defence said that the arbitration agreement was not in written form and hence doesnt bind him to indemnify Bose. Is the plea by Rama valid?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.What are the main attributes that arbitration should possess to be an alternative to litigation?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.According to the passage, what is a necessary component to enable arbitration between parties in a dispute?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.Which of the following statements would the author mostly agree with?

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Abhishek and Ankita were involved in a business where a dispute arose and the same was referred to arbitration. The award given by the arbitrator was in the form of a wager. Identify the ground on which the award can be set aside:a)Bias of arbitratorb)Dispute outside the scope of arbitration agreementc)Violation of public policyd)Improper appointment of arbitratorCorrect answer is option 'C'. Can you explain this answer?
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Abhishek and Ankita were involved in a business where a dispute arose and the same was referred to arbitration. The award given by the arbitrator was in the form of a wager. Identify the ground on which the award can be set aside:a)Bias of arbitratorb)Dispute outside the scope of arbitration agreementc)Violation of public policyd)Improper appointment of arbitratorCorrect answer is option 'C'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Abhishek and Ankita were involved in a business where a dispute arose and the same was referred to arbitration. The award given by the arbitrator was in the form of a wager. Identify the ground on which the award can be set aside:a)Bias of arbitratorb)Dispute outside the scope of arbitration agreementc)Violation of public policyd)Improper appointment of arbitratorCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Abhishek and Ankita were involved in a business where a dispute arose and the same was referred to arbitration. The award given by the arbitrator was in the form of a wager. Identify the ground on which the award can be set aside:a)Bias of arbitratorb)Dispute outside the scope of arbitration agreementc)Violation of public policyd)Improper appointment of arbitratorCorrect answer is option 'C'. Can you explain this answer?.
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