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Legal Studies: CUET Mock Test - 3 - CUET Humanities MCQ


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30 Questions MCQ Test - Legal Studies: CUET Mock Test - 3

Legal Studies: CUET Mock Test - 3 for CUET Humanities 2024 is part of CUET Humanities preparation. The Legal Studies: CUET Mock Test - 3 questions and answers have been prepared according to the CUET Humanities exam syllabus.The Legal Studies: CUET Mock Test - 3 MCQs are made for CUET Humanities 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Legal Studies: CUET Mock Test - 3 below.
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Legal Studies: CUET Mock Test - 3 - Question 1

Assertion (A): A Supreme Court judge is appointed by the President.
Reason (R): There should be minimum interference of the executive body.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 1

Under clause 2 of Article 124 of the Indian Constitution, the Chief Justice of India and the Supreme Court judges shall be appointed by the President of India. This is done to minimize the influence of any political executive on the Courts. This allows the Courts to be independent as no legislative or executive body would be able to influence the decisions taken by the Courts.

Legal Studies: CUET Mock Test - 3 - Question 2

Separation of the judiciary from the executive has been provided in which of the following parts of the Indian Constitution?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 2

Article 50 of the Constitution of India is a Directive Principle of State Policy. It gives a direction to the state to keep judiciary independent of the executive, particularly in judicial appointments.

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Legal Studies: CUET Mock Test - 3 - Question 3

Which Constitutional Amendment Act relating to appointments of judges came for consideration of the Supreme Court and was struck down, being in violation of the basic feature doctrine of the Constitution of India?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 3

The 99th Amendment of the Constitution of India, officially known as the Constitution (Ninety-ninth Amendment) Act, 2014, formed a National Judicial Appointments Commission. The NJAC Act was challenged in the Supreme Court by Supreme Court Advocates on Record Association (SCAORA) and others contending that the new law is unconstitutional and is aimed at hurting the independence of judiciary. After accepting the petition, on October 16, the five-member constitutional bench of the Supreme Court headed by the Justice J. S. Khehar with 4:1 majority declared the National Judicial Appointments Commission and the 99th Constitutional Amendment Act as 'unconstitutional and void'.

Legal Studies: CUET Mock Test - 3 - Question 4

Which of the following is not required in a gift?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 4

According to section 122 of TPA, a transfer of ownership of property that is made voluntarily and without consideration is called gift. Thus, no consideration is required in a gift.

Legal Studies: CUET Mock Test - 3 - Question 5

A counter-offer is

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 5

A counter-offer functions as both: a rejection of an offer to enter into a contract and a new offer that materially changes the terms of the original offer. Since a counter-offer serves as a rejection, it completely voids the original offer. This means that the original offer can no longer be accepted.

Legal Studies: CUET Mock Test - 3 - Question 6

In law of Tort, unliquidated damages are always awarded. The meaning of unliquidated is

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 6

Unliquidated damages can be defined as the sum of money that cannot be foreseen or assessed by a fixed formula. It is established by a judge in a court on the basis of approximation. Damages are categorised as unliquidated when the amount of damages is unidentifiable or subject to an unforeseen event that makes the amount not calculable.

Legal Studies: CUET Mock Test - 3 - Question 7

________ made while in the custody of police is inadmissible.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 7

According to Section 26, confession made while in the custody of police is inadmissible.

Legal Studies: CUET Mock Test - 3 - Question 8

`X` and `Y` agree to commit theft in `Z`s house but no theft is actually committed, they are guilty of

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 8

The proviso to section 120A of the Indian Penal Code states that, 'Provided that no agreement except an agreement to commit an offence shall amount to a criminal conspiracy unless some act besides the agreement is done by one or more parties to such agreement in pursuance thereof.' In the above case, agreement was to commit an offence, i.e theft. Even though no theft was committed, X and Y will be guilty of criminal conspiracy.

Legal Studies: CUET Mock Test - 3 - Question 9

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 claimant's 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.
[Extracted, with edits and revisions, from why arbitration is not working in India?, article by Livelaw]

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 doesn't bind him to indemnify Bose. Is the plea by Rama valid?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 9

No, the plea by Rama is not valid as the Act doesn't mandate any particular form of agreement.
The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form.

Legal Studies: CUET Mock Test - 3 - Question 10

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 claimant's 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.
[Extracted, with edits and revisions, from why arbitration is not working in India?, article by Livelaw]

Q. Which of the following statements would the author mostly agree with?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 10

Option 4 catches the crux of the entire passage and what the author wishes to convey. Option 1 is not a possible inference as no such positive prediction can be made. Option 2 suggests that litigation would always be better and option 3 cannot be inferred from the passage.

Legal Studies: CUET Mock Test - 3 - Question 11

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 claimant's 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.
[Extracted, with edits and revisions, from why arbitration is not working in India?, article by Livelaw]

Q. According to the passage, what is a necessary component to enable arbitration between parties in a dispute?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 11

The use of an arbitration clause in the agreement has been mentioned many a time in the passage. The only inference that can be made from this is that it is a necessary component to enable arbitration.

Legal Studies: CUET Mock Test - 3 - Question 12

The Universal Declaration of Human Rights is applicable to:

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 12

Article 2 in the Universal Declaration of Human Rights states that everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. Furthermore, no distinction shall be made on the basis of the political, jurisdictional or international status of the country or territory to which a person belongs, whether it be independent, trust, non-self-governing or under any other limitation of sovereignty.

Legal Studies: CUET Mock Test - 3 - Question 13

Assertion (A): Women in India today legally enjoy equal opportunities with men in all the fields.
Reason (R): The Constitution of India prohibits any kind of discrimination against women.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 13

Article 16 of the Indian Constitution states that there shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. No citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect or, any employment or office under the state.

Legal Studies: CUET Mock Test - 3 - Question 14

Which of the following is not the function of the National Human Rights Commission?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 14

The specific legislation called the Protection of Human Rights Act was enacted by the Parliament in 1993, which in turn established the National Human Rights Commission as an independent institution with powers and functions to promote and protect human rights. The Commission is vested with the following functions:

  1. The Commission may, with the permission of the court, intervene in court proceedings concerning human rights violations.
  2. The Commission may also visit any jail or other governmental institutions, where prisoners are lodged or detained, to study the living conditions of the inmates and make recommendations to the government.
  3. The Commission can undertake and promote research in the field of human rights as well as spread human rights literacy among various sections of society.

Lastly, the Commission can encourage and support the efforts of non-governmental organizations and institutions involved with human rights work.
Thus, the National Human Rights Commission does not have the right to either penalize the guilty of human rights violation or to provide any financial assistance to the victim.

Legal Studies: CUET Mock Test - 3 - Question 15

National Human Rights Commission is a:

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 15

The National Human Rights Commission (NHRC) of India is a statutory public body constituted on October 12, 1993 under the Protection of Human Rights Ordinance of September 28, 1993. It was given a statutory basis by the Protection of Human Rights Act, 1993.

Legal Studies: CUET Mock Test - 3 - Question 16

Which of the following is true with regard to changes brought by Advocate's Act, 1961?
Statement I - All India Bar Council was established.
Statement II - All old categories of practitioners were consolidated into one category.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 16

After the enactment of the Advocates Act, 1961 all the old categories of practitioners (vakils, barristers, pleaders of several grades, and mukhtars) were abolished and consolidated into a single category called "advocates" who enjoy the right to practice in courts throughout India. The Advocates Act also established an All India Bar Council for the first time, with the Attorney-General and Solicitor General of India as ex-officio members of the Bar Council.

Legal Studies: CUET Mock Test - 3 - Question 17

Where was the first National Law School set up?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 17

The National Law School of India University (NLSIU or simply NLS) is a public law school and a National Law University located in Bangalore, Karnataka. It was the first National Law University to be established in India as well as one of the first in the country to offer the five-year integrated undergraduate law degree, postgraduate law degree and doctorate law degree.
The National Law School of India University was established by a statute passed by the Legislative Assembly of the state of Karnataka. The statute states that Chief Justice of India serves as the school's Chancellor. The day-to-day management and administration of the university is undertaken by the Vice-Chancellor.

Legal Studies: CUET Mock Test - 3 - Question 18

ICCPR stands for:

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 18

The International Covenant on Civil and Political Rights (ICCPR) is a multilateral treaty that commits state parties to respect the civil and political rights of individuals, including the right to life, freedom of religion, freedom of speech, freedom of assembly, electoral rights and rights to due process and a fair trial. An explicit provision for legal services is incorporated in the International Covenant on Civil and Political Rights (ICCPR).

Legal Studies: CUET Mock Test - 3 - Question 19

Article 39 A was added to the Indian constitution to promote:

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 19

Article 39 A of the Indian Constitution states that the state shall secure that the operation of the legal system promotes justice, on a basis of equal opportunity, and shall, in particular, provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities.

Legal Studies: CUET Mock Test - 3 - Question 20

Who is the Patron-in-Chief of NLSA?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 20

The Central Government constitutes the National Legal Services Authority (NLSA) and the Supreme Court Legal Services Committee (SCLSC) for exercising powers and functions as determined by the Central Authority. The NLSA consists of Chief Justice of India (CJI) as the Patron-in-Chief, a Judge of the Supreme Court nominated by the President as Executive Chairman, and other members nominated by the Government in consultation with the CJI.

Legal Studies: CUET Mock Test - 3 - Question 21

Which tribunal functions alongside TRAI?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 21

Tribunals have been constituted under specific constitutional mandate enshrined in the Constitution of India or through legal enactments. Tribunals function with regulators. Regulators are specialised government agencies that oversee the law and order compliance in the relevant government sectors. For example, one of the tribunals TDSAT, i.e. Telecom Dispute Settlement Appellate Tribunal functions alongside the regulator, TRAI (Telecom Regulatory Authority of India) in formulating laws and policy for resolving telecom disputes in India.

Legal Studies: CUET Mock Test - 3 - Question 22

Appointments of persons (other than district judges) to the judicial service of a State are made by the Governor of the State after consulting

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 22

Article 234 in The Constitution Of India 1949 deals with the recruitment of persons other than district judges to the judicial service. The article states that appointment of persons other than district judges to the judicial service of a State shall be made by the Governor of the State in accordance with rules made by him in that behalf after consultation with the State Public Service Commission and with the High Court exercising jurisdiction in relation to such State.

Legal Studies: CUET Mock Test - 3 - Question 23

The 'Power of Judicial Review' and 'Independence of the Judiciary' principles of the Indian Constitution are borrowed from the _______ Constitution.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 23
  • The 'Power of Judicial Review' and 'Independence of the Judiciary' principles of the Indian Constitution are borrowed from the United States Constitution.
  • Judicial Review: Judicial review is a process under which executive or legislative actions are subject to review by the judiciary. A court with authority for judicial review may invalidate laws for violating the terms of the Constitution and governmental actions for being unlawful.
  • Independence of the Judiciary: Judicial independence is important to the idea of separation of powers. Judicial independence is the concept that the judiciary should be independent of the other branches of the government, i.e. executive and legislature.
Legal Studies: CUET Mock Test - 3 - Question 24

A promises, for no consideration, to give to B Rs. 1000. The agreement is

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 24

Option (1) is incorrect: It is not a voidable agreement.
Option (2) is correct: Under Section 2 of the Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement. Hence, the given agreement is void from the beginning.
Option (3) is incorrect: It is not enforceable in the court of law.
Option (4) is incorrect: It is not enforceable at all, whether in writing or in oral.

Legal Studies: CUET Mock Test - 3 - Question 25

Match the following.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 25
  • Section 13 of the Indian Contract Act defines 'Consent'. It states that Two or more persons are said to consent when they agree upon the same thing in the same sense.
  • Section 30 states that agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made.
  • Section 56 deals with supervening impossibility. It states that a contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful.
  • Section 73 provides compensation for loss or damage caused by the breach of contract. When a contract has been broken, the party that suffers from such infringement is entitled to receive compensation for any loss or damage resulting from such infringement. Such compensation shall not be given for any remote and indirect loss or damage sustained as a result of the breach.
Legal Studies: CUET Mock Test - 3 - Question 26

Directions: The following question consists of a legal proposition/principle (hereinafter referred to as 'principle') and facts. This principle has to be applied to the given facts to arrive at the most reasonable conclusion. Such principle may or may not be true in the real sense, yet you have to conclusively assume it to be true for the purpose of the question. In other words, in answering the question, you must not rely on any principle except the principle that is given herein below for the given question. Further, you must not assume any facts other than the facts stated in the question. The objective of this question is to test your interest towards study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion' arrived at may be unacceptable for any other reason. It is not the object of this question to test your knowledge of law.
Principle: A person is responsible for his own act of omission and commission, but in certain cases a person is liable for the act of others. The wrongful act of others must be done within the course of employment. This is known as vicarious liability.
Facts: A careless petrol lorry driver during his working hours was smoking whilst transferring petrol from a tanker to a tank. The employee was carrying out an authorised task (transferring petrol) in an unauthorised manner (whilst smoking) which results into explosion.

Q. Is the employer liable for the act of the employee?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 26

According to the given principle, a person will be liable for the act of others if it is done in the course of employment. It is immaterial whether the employee was doing the act with due care or not. So, in the given case, as the explosion occurred during the course of employment of the lorry driver, the employer will be vicariously liable.
Therefore, option 4 is the answer.

Legal Studies: CUET Mock Test - 3 - Question 27

The police cannot investigate _______ without the order of a Magistrate.

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 27

When information is given of the commission of a non-cognizable offence, the police should refer the informant to the Magistrate. Under Section 155, Clause (2), no police officer shall investigate a non-cognizable case without the order of a Magistrate of the first or second class, or a Presidency Magistrate.

Legal Studies: CUET Mock Test - 3 - Question 28

A frustrated judge in an English court finally asked a barrister after witnesses had produced conflicting accounts,' Am I never to hear the truth? 'No, my lord, merely the evidence', replied counsel. To which judicial system does this judge belong?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 28

The judge belongs to Adversarial system.
Adversarial system is the system in which the judge is to pass the judgements based on the evidence and the arguments that are solely presented by the advocates of the parties. In this system, the judges tend to play less active role and they are not dutifully bound to the solving of the dispute and depend mostly on the evidences produced during the hearing in the court. They pronounce the judgement on the basis of the evidence produced before them.

Legal Studies: CUET Mock Test - 3 - Question 29

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 claimant's 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.
[Extracted, with edits and revisions, from why arbitration is not working in India?, article by Livelaw]

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?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 29

No, the termination is not valid as Suraj's (claimant) statement is enough to proceed.
Power to terminate the proceedings: The Act under Section 25 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. However, 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 claimant's allegations.

Legal Studies: CUET Mock Test - 3 - Question 30

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 claimant's 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.
[Extracted, with edits and revisions, from why arbitration is not working in India?, article by Livelaw]

Q. What are the main attributes that arbitration should possess to be an alternative to litigation?

Detailed Solution for Legal Studies: CUET Mock Test - 3 - Question 30

Though it is mentioned as a question in the end of the third paragraph that an alternative would have to be reliable, fast, efficient and cost-effective, it can be inferred in the last paragraph that it fails as a proper alternative as it is not cost-effective. Cost-effectivity is mentioned twice and there is emphasis laid on the pendency of litigation.

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