ARBITRATION AND CONCILIATION ACT, 1996

1. ADR stands for
Ans – C
A) Automated Discovery Response
B) Alternate Dispute Resolution
C) Alternative Dispute Resolution
D) Automated Dispute Resolution

2. Conciliation proceeding come to an end when
Ans – D
A) It appears to the conciliator that there exists the possibility of a
settlement
B) The conciliator formulates the terms of a settlement
C) The parties along with the conciliator draw up a plan for settlement
D) The settlement agreement signed by the parties comes into existence

3. Which of the following matters cannot be referred to ADR
Ans – C
A) Customer complaints
B) Civil cases
C) Criminal cases
D) Cases of trade disputes

4. Which of the following model law was used by the Indian

Arbitration and conciliation Act 1996?
Ans – D
A) Constitution of India
B) Guidelines of Supreme Court of India
C) European Commercial Arbitration Procedure
D) UNCITRAL, 1985.

5. Which among the following is the main objective of the Arbitration Act,
1996?

Ans – C

A) To comprehensively cover international commercial arbitration C
B) To ensure that arbitral tribunal within the limits of court’s jurisdiction
C) To minimize the supervisory role of courts in the arbitral process
D) None of the above

6. The power of court to refer parties for arbitration would and must
necessarily include, imply and inhere in it
Ans –  C
A) The power and jurisdiction to advise the parties
B) The power and jurisdiction to review the award
C) The power and jurisdiction to appoint the arbitrator
D) The power and jurisdiction to call for another arbitrator.

7. Part I of the Arbitration and Conciliation Act, 1996 applies where
Ans – A
A) The place of arbitration is in India
B) the place of arbitration is outside India, but is in Asia
C) The place of arbitration is outside India, but is in Europe
D) The place of arbitration is anywhere in the world.

8. An arbitral award made under Part l of the Arbitration and Conciliation
Act, 1996 shall be considered as a
Ans – A
A) Domestic award
B) Foreign award
C) General award
D) International award.

9. In the matters governed by Part I of the Arbitration and Conciliation Act,
1996

Ans – C
A) A judicial authority can intervene general
B) A judicial authority shall not intervene under any circumstances
C) A judicial authority cannot intervene except where so provided in this
Part
D) Either (A) or (C).

10. Arbitral proceedings commence
Ans – A
A) On the date on which a request for a dispute to be referred to
arbitration is received by the respondent
B) On the date when the respondent gives consent to the appointment
of the arbitrator

C) On the date when the arbitrator issues notice of the parties
D) On the date when the statement of claim and written submission of
defence is made.

11. An arbitrator:
Ans – D
A) Is chosen and paid by the disputant
B) Acts in accordance with privately chosen procedure so far as that
is not repugnant to public policy
C) Only (A) is correct
D) Both (A) and (B) are correct.

12. An arbitral award:
Ans –D
A) Must be connected with the subject-matter of the dispute arbitrated
B) Must be founded on principle of trust
C) Both (A) and (B) are correct
D) Only (A) is correct

13. An arbitral award
Ans – B
A) Has to be in writing but need not be signed
B) Has to be in writing and signed by the members of the arbitral
tribunal
C) May be oral
D) Either (A) or (B) or (C).

14. An arbitral award
Ans –  A
A) Must state the reasons upon which it is based
B) Must state the reasons upon which it is based only when the
parties have agreed for the same
C) Need not state the reason upon which it is based
D) May state or may not state the reasons upon which it is based as per
discretion of the members of the arbitral tribunal.

15. After the arbitral award is made, each party shall be delivered
Ans – B
A) The original award
B) A signed copy of the award
C) A photocopy of the award
D) An unsigned copy of the award.

16. An arbitral award becomes enforceable when
Ans – C
A) The time for making an application for setting aside the arbitral
award has expired and no such application has been made
B) An application for setting aside the arbitral award has been refused
C) Either (A) or (B)
D) Neither (A) nor (B).

18. Which of the following in the correct statement

Ans – D

A) An arbitral award can be inferred with if it is contrary to the
substantive provisions of the Act or against the terms of the contract
B) An arbitral award can be set aside if the arbitral tribunal has not
followed the mandatory procedure prescribed under the Act
C) An arbitral award can be set aside if it is contrary to fundamental
policy of
Indian law, or the interest of India, or justice or morality
D) All of the above.

19. Statutory arbitration is:
Ans – D
A) Imposed on the parties by operation of law
B) A compulsory arbitration
C) Where consent of the parties is not necessary
D) All of the above.

20. Which is incorrect statement:

Ans – B
A) Arbitrator is a person to whom the matters in the dispute are
submitted by
the parties
B) The Arbitral Tribunal can make law of its own
C) The Arbitral Tribunal is the creature of an agreement
D) Both (B) and (C) are incorrect.

21. Court under Section 2(1)(e), Arbitration and Conciliation Act means
Ans – C
A) Court of Small Causes
B) Principal Civil Court and Civil Court of an inferior grade
C) Principal Civil Court of original jurisdiction
D) All of the above.

22. A ‘Party’ within the meaning of Section 2, Arbitration & Conciliation
Act, 1996 means
Ans –B

A) Party to the contract
B) Party to the arbitration agreement
C) Party to the suit/ proceedings
D) Either (A) or (B) or (C).

23. The definition of ‘Arbitral Tribunal’ under the Arbitration and
Conciliation Act, 1996 means
Ans –A
A) Sole arbitrator or a panel of arbitrators
B) Sole arbitrator only
C) Panel of arbitrators only
D) Presiding officer.

24. A written statement of the reasons for the challenge to the arbitral tribunal has to be sent within
Ans – A
A) 15 days of becoming aware of the constitution or the reasons
B) 30 days of becoming aware of the constitution or the reasons
C) 7 days of becoming aware of the constitution or the reasons
D) 60 days of becoming aware of the constitution or the reasons

25. The arbitral tribunal has the jurisdiction to rule
Ans –  D
A) On its own jurisdiction
B) On objections as to the existence of the arbitration agreement
C) On objection as to the validity of the arbitration agreement
D) All of the above.

26. A plea questioning the jurisdiction of the arbitral tribunal
Ans – A
A) Must be raised before or at the time of submission of statement of
defence
B) May be raised after the submission of the statement of defence A
C) Can be raised at any time before the conclusion of arbitral
proceedings
D) Can be raised at any time before the making of arbitral award.

27. A party shall be precluded from raising the question of jurisdiction of
arbitral tribunal
Ans – D
A) Where he has appointed the arbitrator.
B) Where he has participated in the appointment of the arbitrator
C) Both (A) and (B)
D) Neither (A) nor (B).

28. During the arbitral proceedings the arbitral tribunal
Ans – C
A) Can make interim award
B) May require a party to provide appropriate security
C) Both (A) and (B)
D) Either (A) or (B).

29. The arbitral tribunal has the jurisdiction to
Ans – A
A) Award interest on the whole or part of the money
B) Award interest on the whole of the money Only
C) Award interest on part of the money only
D) Either (B) or (C).

30. The expression ‘Arbitration agreement’ under Section 7 of Arbitration
and Conciliation Act, 1996 means
Ans – B
A) Any agreement which have arisen under the Arbitration Act of 1940
B) Any agreement to submit to arbitration all or certain disputes
which have arisen or which may arise between them in respect of a
defined legalrelationship, contractual or not.
C) Any agreement to submit to arbitration certain disputes of civil nature
D) Any agreement to submit to arbitration certain disputes of criminal
nature.

31. Which is incorrect statement:
Ans – C
A) Arbitration agreement is a kind of contract
B) Parties to the arbitration must be legal persons
C) Arbitration agreement recognises verbal agreement
D) None of the above

32. Which Article of the Constitution of India authorises the government to
enter into an arbitration agreement:
Ans – B
A) Art. 235
B) Art. 299
C) Art. 39
D) Both (A) and (C).

33. Under Section 7, Arbitration and Conciliation Act, 1996, an arbitration
agreement

Ans – A
A) Shall be in writing
B) May be oral
C) Either in writing or oral
D) Neither in writing nor oral.

34. Reference in a contract to a document containing an arbitration clause

Ans -B
A) Does not constitute an arbitration agreement
B) Constitutes an arbitration agreement if the contract is in writing
and the reference is such as to make that arbitration clause part of the
contract
C) Constitutes an arbitration agreement where the contract though
oral, the reference is such as to make that arbitration clause part of
the contract
D) Either (B) or (C).

35. Under Section 7, Arbitration and Conciliation Act, 1996, an arbitration
agreement shall be in writing if it is contained in
Ans – D
A) A document signed by the parties
B) An exchange of letters, telex, telegrams or other means
of telecommunication which provide a record of the agreement
C) An exchange of statements of claim and defence in which the
existence of the agreement is alleged by one party and not denied by
the other party
D) Either (A) or (B) or (C).

36. Section 9 of Arbitration and Conciliation Act, 1996 deals with:
Ans – A
A) Interim measures by the court
B) Discretionary powers of the court
C) Both (A) and (B)
D) None of the above.

37. Under Section 10, Arbitration and Conciliation Act, 1996, the parties are
free to determine the number of ‘ arbitrators, provided that such number
Ans – D
A) Does not exceed three
B) Does not exceed five
C) Does not exceed seven
D) Is not an even number.

38. Under Section 11, Arbitration and Conciliation Act, 1996, a person for
being an arbitrator
Ans – C
A) Must be an Indian national
B) Must be an Indian citizen
C) May be a person of any nationality
D) May be a person of any nationality, except an alien enemy.

39. In an arbitration by three arbitrators where the parties fail to agree
upon appointment of arbitrators, under Section 11, Arbitration and Conciliation Act,1996:
Ans – A
A) Each party shall appoint one, and the two appointed arbitrators shall
appoint the third arbitrator
B) The claimant shall appoint two arbitrators and the disputant shall
appoint one
C) The disputant shall appoint two arbitrators and the claimant shall
appoint one
D) All the three, to be appointed by the Court.

40. Under Section 11, Arbitration and Conciliation Act, the arbitrator has
to be appointed
Ans – D
A) Within 30 days of the arbitration agreement
B) Within 30 days of arising of the dispute
C) Within 30 days of failure to resolve the dispute of their own
D) Within 30 days from the receipt of request for appointment of
arbitrator from the other party.

41. A party…..
Ans – B
A) Cannot challenge an arbitrator appointed by him
B) May challenge an arbitrator appointed by him for reason of
which he becomes aware after the appointment has been made
C) May challenge an arbitrator appointed by him for reason known
to him before the appointment is made
D) May challenge an arbitrator appointed by him irrespective of the
reasons being known to him before the appointment or becoming
aware of the reasons after the appointment has been made.
42. Section 12 of Arbitration and Conciliation Act, 1996 deals with
Ans – B
A) Procedure ‘for arbitration
B) Grounds for challenge to Arbitrator
C) Finality of award
D) None of the above.

43. Section 12(3) provides the ground for challenging to the arbitrator when:

Ans – D

A) He is not independent or impartial
B) He is a foreign national
C) He is not qualified as per agreement between the parties
D) Both (A) and (C).

44. Where there is a challenge to arbitrator under any procedure agreed upon by the parties, the Arbitral Tribunal shall
Ans – D
A) Send the matter to the court
B) Appoint any other arbitrator at its own discretion
C) Not continue the arbitral proceedings
D) Continue the arbitral proceedings and shall decide on the challenge.

45. The mandate of an arbitrator shall terminate
Ans – D
A) When he withdraws from his office for any reason
B) When he becomes de jure or defacto unable to act without undue
delay
C) When the parties have agreed to terminate arbitrator’s authority
D) All of the above.

46. Which is incorrect statement:
Ans – C
A) The arbitral tribunal is bound by Code of Civil Procedure, 1908
B) The arbitral tribunal is bound by Indian Evidence Act, 1872
C) Both (A) and (B) are incorrect
D) None of the above.
47. The provision which provides for mutual settlement of dispute by parties before the arbitral tribunal is laid down under:
Ans –  B
A) Section 24
B) Section 30
C) Section 29
D) Section 27.

48. The arbitral tribunal may by order terminate the arbitral proceedings when:
Ans – D
A) When parties have mutually agreed to seek termination of
arbitral proceedings
B) When the claimant withdraws his disputed case and which is not
objected by the respondent
C) When the arbitral Tribunal thinks it is impossible to continue
proceedings
D) all of the above.

49. The request for the correction or interpretation of the award by the arbitral Tribunal has to be made by the party:
Ans – B
A) Within sixty days
B) Within thirty days
C) Within ninety days
D) None of the above.

50. The provision for setting aside the arbitral award is laid down under:
Ans – C
A) Section 32 of the Act
B) Section 36 of the Act
C) Section 34 of the Act
D) None of the above.

Source – SOUTH CENTRAL RAILWAY

QUESTION BANK & ANS – CHIEF LAW ASSISTANT SELECTION PART 2

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