FICCI Rules of Domestic Commercial Arbitration & Conciliation

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RULES OF DOMESTIC
COMMERCIAL ARBITRATION
AND
CONCILIATION
(As amended on and with effect from 1st April, 2016)
FEDERATION OF INDIAN CHAMBERS OF

COMMERCE & INDUSTRY
Federation House | Tansen Marg | New Delhi
Web: www.ficci.comIndia's Apex Arbitral Institution
DedFACTted to Arbitration for over five Decades
C O N T E N T S
TOPIC Page TOPIC Page
(20) Waiver of Rules
(21) Return of Documents
(22) Award
I. ARBITRATION, CONCILIATION (23) Filing of Award
& MARITIME ARBITRATION CLAUSES
(24) Stamp Duties
II. RULES OF ARBITRATION (25) Copies of Proceedings
(1) Definitions (26) Cases Withdrawn
(2) Arbitration Committee (27) Indemnity of Secretariat and Arbitrators
(3) Rules Applicable (28) Amendment of Rules
(4) Interpretation of the Rules III. GUIDELINES FOR ARBITRATORS

AND PARTIES
(5) Panel of Arbitrators
(1) For Arbitrators
(6) Duties of the Registrar
(2) For Parties
(7) Initiation of Arbitration
(3) For Arbitration Committee
(8) Defence Statement 12
IV. FACT CODE OF CONDUCT
(9) Counter-Claim and Reply to Counter-Claim
V. RULES OF CONCILIATION
(10) Copies of Statements, Etc.
(1) Preliminary
(11) Constitution of the Arbitral Tribunal
(2) Definitions
(12) Deposits
Part-A Rules of Procedure for Conciliation
(13) Fees and Expenses
(3) Commencement of Conciliation Proceedings
(14) Submission of the Case to the
Arbitral Tribunal (4) Number and appointment of Conciliators
(15) Notifications and/or Communications (5) Submission of Statement of Conciliator

from the Registrar
(6) Representation and Assistance
(16) Amendment of Claims, etc.
(7) Role of Conciliator
(17) Place of Arbitration
(8) Administrative Services
(18) Proceedings Before the Arbitral
Tribunal Conciliation (9) Communication between Conciliator and
Parties
(19) Fast Track Arbitration

C O N T E N T S
TOPIC Page TOPIC Page
(10) Disclosure of Information (26) Fees and Expenses
(11) Cooperation of parties with Conciliator (27) Schedule of Fees
(12) Suggestions by parties for settlement of dispute (28) Amendments of Rules
(13) Settlement Agreement
(14) Confidentiality
(15) Termination of Conciliation Proceedings
(16) Resort to Arbitral or Judicial Proceedings
(17) Costs
(18) Deposit
(19) Role of Conciliator in other proceedings
(20) Admissibility of evidence in other proceedings
(21) Interpretation and application
Part-B Services for Procedure under the

Rules of Conciliation
(22) Services for Procedure
(23) Services as the Registry
(24) Services as recommending or

appointing authority
(25) Administrative Services

MODEL CLAUSES FOR DOMESTIC
FICCI
COMMERCIAL ARBITRATION
AND CONCILIATION
FACT DOMESTIC COMMERCIAL

ARBITRATION CLAUSE
The FACT recommends to all parties, desirous of making reference to arbitration by the FICCI, the use of the
following arbitration clause in writing in their contracts:
"Any dispute or difference whatsoever arising between the parties out of or relating to the construction,
meaning, scope, operation or effect of this contract or the validity or the breach thereof shall be settled by
arbitration in accordance with the F I C C I Rules of Domestic Commercial Arbitration of the FACT
and the award made in pursuance thereof shall be binding on the parties."
FACT CONCILIATION CLAUSE

Parties to a contract, who agree to resolve their contractual disputes in accordance with the FACT Rules
of Conciliation and to have the FACT act as appointing authority and/or to provide administrative services, may use
the following clause:
“If a dispute arises out of or in connection with this contract, or in respect of any defined legal relationship
associated therewith or derived therefrom, the parties agree to seek an amicable settlement of that dispute
by conciliation under the FACT Rules of Conciliation. The authority to appoint the conciliator/conciliators
shall be the FICCI. The FICCI will provide administrative service in accordance with the FACT Rules of
Conciliation”.
Note: Parties may have to consider adding the following:

(a) The number of conciliator(s) shall be .....................................................................................................................................
(b) The language of the conciliation proceedings will be ...........................................................................................................
(c) Specific qualifications of the conciliator(s) including, but not limited to, language, nationality, technical qualifications
and experience.
FICCI
RULES OF
DOMESTIC
COMMERCIAL
ARBITRATION
(As Amended on and With Effect from April 1, 2016)
FACT RULES OF DOMESTIC
FICCI
COMMERCIALARBITRATION
(As amended on and with effect from 1st April, 2016)
FACT DOMESTIC COMMERCIAL

ARBITRATION CLAUSE
The FICCI recommends to all parties desirous of making reference to arbitration by the FICCI, the use
of the following arbitration clause in writing in their contracts:
"Any dispute or difference whatsoever arising between the parties out of or relating to the construction, meaning, scope,
operation or effect of this contract or the validity or the breach thereof shall be settled by arbitration in accordance with the
Rules of Domestic Commercial Arbitration of the FICCI and the award made in pursuance thereof shall be binding on the
parties."
Definitions
Rule 1
(i) These rules may be called the "Rules of Domestic Commercial Arbitration of the FICCI."
(ii) These rules shall apply where parties have agreed in writing that (a) a dispute has arisen or (b) a dispute
which may arise between them in respect of defined legal relationship whether contractual or not, shall be
settled under the Rules of Arbitration.
Rule 2
In these rules, the following words have the following meanings:
(i) "Arbitral Tribunal" means an arbitrator or arbitrators appointed for determining a particular dispute or
difference.
(ii) "Arbitral Award" includes an interim award.
(iii) “Act” means the Arbitration and Conciliation Act, 1996 and any amendment thereof.
(iv) "Committee" means the Arbitration Committee of the Council as provided for hereinafter.
(v) "Council" means the FICCI.
(vi) "Governing Body" means the Governing Body of the Council.

(vii) "Guidelines" means the guidelines for arbitrators and the parties to arbitration for expeditious conduct
of the arbitration proceedings, given in the Annexure to these Rules.
N
(viii) “Domestic Commercial Arbitration” means an arbitration relating to disputes arising out of legal
relationships whether contractual or not considered as commercial under the law in force in India and
where parties are (a) individuals who are nationals of India; or (b) a body corporate which is incorporated
in India; or (c) any body or department of the Government of India and/or State Government and/or
the local bodies including local authorities, State Government and Union Territories; or (d) an association
or body of individuals and/or a partnership firm having its place of business in India.
(ix) "Party" means a party to an arbitration agreement. It shall include any individual, firm, company,
Government, Government organisation or Government Undertaking.
(x) "Panel" means the Panel of Arbitrators maintained by the Council.
(xi) "Registrar" means the Registrar for the time being appointed by the Committee and includes such other
persons as the Committee may nominate for carrying out the duties of the Registrar under these rules.
(xii) "Rules" means the Rules of Arbitration of the Council.
(xiii) "Rules of Conciliation" means the Rules of Conciliation of the Council.
(xiv) "Fast Track Arbitration" means arbitration in accordance with Rule 44.
(xv) Words importing the singular number include, where the context admits or requires, the plural number
and vice versa.
Arbitration Committee
Rule 3
(a) The Governing Body of the Council shall constitute an Arbitration Committee for performing the
functions prescribed under these Rules. The Committee shall consist of the President of the Council,
who shall be the ex officio Chairman of the Committee and three members of the Governing Body of
the Council elected by the Governing Body from amongst themselves. The Committee shall hold office
for a year.
(b) The Committee may co-opt not more than two persons to be additional members of the Committee
during its terms of office. Persons who are not members of the Governing Body may also be co-opted
to be members of the Committee.
(c) The Committee or the Chairman of the Committee may delegate to the Registrar the power to take
certain decisions, provided that any such decision shall be reported to the Chairman or the Committee
as the case may be.
Rules Applicable
Rule 4
(a) Any dispute relating to any commercial matter including shipping, sale, purchase, banking, insurance,
building construction, engineering, technical assistance, know-how, patents, trademarks, management
consultancy, commercial agency, or labour, arising between two or more parties in India who agree or
have agreed for arbitration by the Council, or under the Rules of Arbitration of the Council, shall be
determined and settled in accordance with these Rules.
(b) The Council shall also be competent to administer the conduct of arbitration in any dispute or difference
relating to a commercial transaction between parties as mentioned in sub-clause (a) where they have
agreed to have their dispute arbitrated under any other Rules of Arbitration and have agreed to have
such arbitration administered by the Council, wholly or in respect of some matters arising out of such
arbitration.
(c) In case the parties have provided different procedure for appointment of arbitrator or schedule of cost
including the arbitrator's fee, the Council shall not be bound to process the case unless both the parties
agree to follow the entire procedure of arbitration under Rules of Arbitration of the Council.
(d) The Council shall be competent to function as Appointing Authority as contemplated under the
Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).
Rule 5
Wherever the Parties have provided or agreed for arbitration by the FICCI or for arbitration under the
Rules of Arbitration of the Council, these rules or any amendment thereof, in the form obtaining at the time
the dispute is referred to arbitration of the Council, shall apply.
Rule 6
The proceeding before the Arbitral Tribunal shall be governed by applicable laws in India.
Rule 7
Any chamber of commerce, trade association or any arbitral or other organisation may adopt these Rules by
making them generally available to its members or by applying them to any dispute in which any of its
members may be parties or by normally conducting its arbitration under these Rules.
Interpretation of the Rules

Rule 8
The decision of the Committee on any question relating to interpretation of these rules or any procedural
matter there under shall be final and binding on the parties.
Panel of Arbitrators
Rule 9
A Panel of Arbitrators shall be appointed by the Committee from amongst persons who are qualified and
possesses knowledge and experience in their respective field of profession and arbitration law & procedure
and are willing to serve as arbitrators generally or in specific fields and who are from time to time recommended
by the members of the Council or any other person or organisation.
All the members of the Panel will carry equal status and parties will not have any right to challenge the
appointment of the arbitrator on the ground that its nominee arbitrator has higher status than the Presiding
Arbitrator.
Rule 10
The Registrar shall prepare and maintain an up-to-date Panel of Arbitrators together with adequate information
as to their qualifications and experience. Separate lists may be kept and maintained of arbitrators included in the
Panel for disputes in general and for each of the fields of international trade and/or business transactions in
which the Governing Body decides that the Council will offer arbitration facilities under the Rules.
The parties to a dispute or the Registrar where he appoints the arbitrator may choose any person from the
panel with reference to any dispute. If any party appoints a foreigner/person residing abroad, as arbitrator
from the panel, that party will have to meet the travel & stay expenses of the person appointed as arbitrator at
the venue of arbitration. The arbitral tribunal may, however, make any order in regard thereto in the award. The
panel of Arbitrators shall be open to inspection by all persons with the permission of the Registrar.
Rule 11
The Committee may at any time add the name of any person to the list of arbitrators included in the Panel or
delete the name of any person from the panel.
Rule 12
The Chairman of the Committee may include the name of any person in the panel, in case it is required in
any particular case. His continuance in the Panel will be decided by the Committee.
Rule 13
The persons who have attained the age of more than 80 years will automatically cease to be member of the
Panel of Arbitrators. In the case of a person, who has been appointed as Arbitrator before attainment of the
age of 80 years, his panel membership will continue till the pronouncement of the Award in pending
arbitration matters referred to him.
Duties of the Registrar
Rule 14
(a) The Registrar shall receive applications for arbitration by the Council, receive payment of fees and
deposits, appoint, in consultation with the Chairman of the Committee, and in his absence in
consultation with the member of the Governing Body designated by him, an arbitrator or arbitrators as
hereinafter provided. The Registrar shall also receive all communications made to the arbitral tribunal by
the parties and communicate to them the orders and directions of the arbitral tribunal, keep a register of
applications to the Council and of awards made by the arbitral tribunal, keep such other books or
memoranda and make such other records or returns as the Committee shall from time to time require
and generally carry out the directions of an arbitral tribunal so constituted under these rules and take
such other steps as may be necessary to assist such arbitral tribunal in the carrying out of its functions.
(b) The Registrar may delegate to any officer of the Council, Chambers of Commerce or Trade Association
at the premises of which the arbitration proceedings are taking place, to discharge such of the functions
and administrative duties of the Registrar as are deemed proper and necessary from time to time, with
reference to a particular case or cases.
Initiation of Arbitration
Rule 15
(i) Any Party wishing to commence arbitration proceedings under these rules (Claimant) shall give a notice
of request for arbitration to the Registrar of FACT and to the Respondent.
(ii) The notice of request (application) for arbitration to the Registrar shall be accompanied by:-
(a) the names and full addresses of the parties to the dispute including emails, phone numbers, hand/mobile
phone numbers, fax nos. of the parties to the dispute and their legal representative, if any.
(b) statement of the claim and facts supporting the claim, points at issue and relief or remedies sought with
other details of the claimant's case.
(c) original or duly certified copies of the arbitration agreement, any contract or agreement out of or in
connection with which the dispute has arisen and such other documents and information relevant or
relied upon.
(d) Non-Refundable Registration Fee of Rs.15,000/- plus any applicable tax for claims up to Rs. One Crore and
Rs.30,000/- plus any applicable tax for claims more than Rs.One Crore.
(e) The Arbitral proceedings in respect of dispute commence on the date on which a request for that dispute
to be referred to arbitration is received by the Respondent.
(f) In the event that the Claimant fails to comply with any of the requirements referred to hereinabove, the
Registrar may fix a time limit not exceeding 15 days within which the Claimant must comply, failing which
the file shall be closed without prejudice to the Claimant’s right to resubmit the same claims at a later date
in another notice of request for arbitration.
Rule 16
If any Court makes an order directing that an arbitration be held under these Rules, in addition to the
documents listed in Rules 15, the order of that Court or a copy thereof shall accompany the application for
arbitration.
Rule 17
(a) On receipt of an application for arbitration, the Registrar shall have absolute discretion to accept or reject
the said application. The Registrar is not bound to give reasons for the exercise of his discretion.
Before deciding on the acceptability of an application for arbitration, the Registrar may ask the parties for
further information and particulars of their claims.
(b) Similarly, if any information or particulars regarding the arbitration agreement furnished by Claimant with
the application for arbitration are found to be incorrect or false, at any time subsequently, the Registrar
shall have the power to reject the application for arbitration.
(c) Any Party aggrieved by the decision of the Registrar, in accepting or rejecting an application for arbitration
as above, may apply to the Court for suitable directions.
Defence Statements
Rule 18
(a) On receipt of the application together with the claim statement, the Registrar shall send to the other Party
(Respondent) a copy of the claim statement and attached documents and ask such other party to furnish
within thirty days or within any extended date not exceeding thirty days, a defense statement setting out
his case accompanied by all documents and information in support of or bearing on the matter.
(b) Any communication sent by the Registrar under Registered Post to the Respondent on the address
appearing in the Arbitration Agreement/the contract between the parties, as per the information supplied
to the Council, will be deemed to be duly served on the Respondent, if it is delivered to the addressee
personally or at his place of business, habitual residence or mailing address last known, even if the
Respondent refuses to accept the said communication or if it is returned to the Council by the postal
authorities as unclaimed by the said party. The Registrar may proceed further with the arbitration
proceedings as per the rules as if such communication had been duly served on the concerned party. The
Registrar may in such cases make an additional communication to the Parties by Registered Letter or by
other means which may provide a record of attempts to deliver it.
(c) A copy of the defence statement and all appended documents, if any, shall be sent to the Claimant for
information.
(d) The communication is deemed to have been received on the day it is so delivered.
Counter-Claim and Reply to Counter-Claim

Rule 19
(a) The Respondent may make a counter-claim against the Claimant provided the counter-claim arises under
the same transaction as the original claim. He must submit the counter claim with full details supported
by all documents and information as in the case of the claim under Rule 15 within the period laid down
for the defence statement to the claim and the Claimant may within twenty one days of the notification
of the counter claim or within such extended time not exceeding thirty days submit a statement in reply
to the counter claim. The arbitral tribunal appointed to adjudicate upon the original claim shall also
adjudicate upon the counter-claim and there will be no change in the number of members of arbitral
tribunal already constituted on the basis of original claim.
(b) Copy of the reply of the Claimant to the counter-claim and all appended documents, if any, shall be sent
to the Respondent for information.
Copies of Statements, Documents and Replies

Rule 20
All statements, claim, counter-claim, affidavit, replies and other documents and papers submitted by the parties
and all appended documents must be supplied in triplicate. Where there is more than one arbitrator or more
than one opposing party, the parties shall within the time specified furnish to the Registrar such number of
further copies as may be required by the Registrar.
Constitution of the Arbitral Tribunal
Rule 21
On receipt of the application for arbitration, the Registrar shall take necessary steps to have the arbitral
tribunal constituted for the adjudication of the dispute or difference as provided hereunder.
Rule 22
The number of arbitrators to hear a dispute shall be determined as under:
(a) Where the claim including determination of interest, if any, being claimed upto the date of commencement
of arbitration in terms of Rule 15, does not exceed Rs. One crore and where the arbitration agreement
does not specify three arbitrators, the reference shall be deemed to be to a sole arbitrator.
(b) Where the claim including determination of interest, if any, being claimed upto the date of
commencement of arbitration in terms of Rule 15 exceeds Rs. One crore the dispute will be heard and
determined by three arbitrators, unless the agreement provides otherwise or the parties to the dispute
agree to refer the dispute to a sole arbitrator within thirty days from the date of notification of the
request for arbitration.
Rule 23
The appointment of sole arbitrator or three arbitrators shall be made in the following manner:
(a) In case a Sole Arbitrator has to be appointed, the Registrar shall, by a notice in writing, call upon the
parties to the dispute to forward the name of an agreed arbitrator from among the Panel of Arbitrators.
The said notice shall specify the period within which the nomination shall be made which shall not be
more than thirty days from the date of the said notice to the respective parties. If the parties fail to agree
on the person to be appointed as sole arbitrator within the time granted by the Registrar, the Registrar in
consultation with the Chairman of the Committee and in his absence in consultation with the member of
the Governing Body designated by the Chairman, shall appoint the sole arbitrator from among the Panel
of Arbitrators. The sole arbitrator so nominated shall constitute the arbitral tribunal to hear the dispute
and shall be appointed as such in writing by the Registrar. The Registrar shall give notice to the Parties
of the constitution of the arbitral tribunal.
(b) Where the reference is to three arbitrators, the Registrar shall in the first instance call upon the parties to
nominate one arbitrator each from among the Panel of Arbitrators by a notice in writing, sent to them. The
said notice shall specify the period within which the nomination shall be made which shall not be more than
thirty days from the date of the said notice to the respective Parties. If a Party to the dispute refuses or
neglects to appoint an arbitrator on his behalf within the period specified or if he requests the Registrar to
nominate an arbitrator on behalf of that party, the Registrar in consultation with the Chairman of the
Arbitration Committee and in his absence in consultation with the members of the Governing Body
designated by the Chairman shall appoint the arbitrator from the Panel of arbitrators on behalf of that party.
On receipt of the nominations from the respective parties or on the appointment as aforesaid by the
Registrar, the Registrar shall appoint another person as the Presiding Arbitrator of the arbitral tribunal in
consultation with Chairman of the Committee and in his absence in consultation with the members of the
Governing Body designated by the Chairman, from among the panel of arbitrators to be additional arbitrator
to act as Presiding Arbitrator of the arbitral tribunal.
Rule 24
The parties will obtain the consent from the persons nominated by them as arbitrator and intimate the
Council accordingly. The Registrar will obtain the consent from person(s) nominated by him. After a person
gives his consent for appointment as arbitrator, he will be duly intimated about his appointment to decide the
dispute, by a Memo in writing under the hand of the Registrar about the constitution of the arbitral tribunal.
The appointment of the arbitrator will take effect from the date of such intimation about the constitution of
the arbitral tribunal.
Rule 25
(i) Before accepting his nomination the prospective arbitrator shall disclose any circumstances such as
financial, business, professional or other kind in the outcome of the award, likely to disqualify him as
an impartial arbitrator. Upon receipt of such information, the Registrar shall disclose it to the parties,
who if willing to proceed under the circumstances disclosed, shall advise the Registrar accordingly. If
either party declines to waive the presumptive disqualification, the prospective arbitrator shall be
disqualified from acting as arbitrator and the vacancy so created shall be filled, in accordance with the
applicable provision of these Rules.
(ii) The arbitrator while making the aforesaid disclosure should take notice of the grounds enumerated in
the Fifth Schedule of the Act or such other schedule or amendment as may be made from time to time
in respect thereof.
(iii) Any person, whose relationship with the parties or counsel or the subject matter of the dispute falls
under any of the categories specified in the Seventh Schedule of the Act, shall be ineligible to be
appointed as an arbitrator provided that the parties may waive the applicability of the categories provided
in the Seventh Schedule or such other schedule or amendment as may be made from time to time by an
express agreement in relation to the appointment of arbitrators.
Rule 26
Any Party shall have the right to challenge the appointment of an arbitrator on receipt of the notice of his
appointment for reasons which disqualify the arbitrator. The Challenge of an arbitrator shall be made within
15 days after his appointment has been communicated to the challenging party or within 15 days of his
becoming aware of the reasons for which the challenge is made. Copies of the communication of challenge
shall be sent to the other Parties and the arbitrators. The Committee shall be the sole judge of the grounds of
challenge and its decision shall be final and binding on the Parties as well as the arbitrator.
Rule 27
(a) If any appointed arbitrator resigns or dies or becomes incapable of acting or neglects or fails to act
expeditiously, prior to or during the arbitration hearings, or if he fails to make the award within the time
and/ or extended time prescribed under Rule 63, the Registrar in consultation with the Chairman of the
Arbitration Committee may terminate the authority of such an appointed arbitrator and inform him
accordingly. In the event of such termination, the arbitrator or arbitrators as the case may be, and whose
authority has been terminated, shall not be entitled to any fee.
(b) In case of the resignation or death or termination of authority of an appointed arbitrator under Sub-Rule
above, a new arbitrator will be appointed in his place by the Registrar in consultation with the
Chairman of the Arbitration Committee in case they had appointed the original arbitrator. Where the
appointment was made by the parties, the Registrar shall call upon the party who had appointed the
arbitrator to nominate another arbitrator in his place. If any Party refuses or neglects to nominate an
arbitrator within 15 days of the date of notice requiring him to nominate the arbitrator or within such
extended time not exceeding thirty days, the Registrar in consultation with the Chairman of the Arbitration
Committee shall nominate the arbitrator on behalf of that Party from among the Panel of Arbitrators.
(c) The arbitrator(s) appointed as above will be informed about the reconstitution of the arbitral tribunal and
the reconstituted arbitral tribunal shall make the award expeditiously within the time prescribed under
Rule 63 from the date when the reconstituted arbitral tribunal enters on the reference. The reconstituted
arbitral tribunal shall proceed with the arbitration with the liberty to act on the record of evidence and
proceedings as then existing or to commence the proceedings de novo.
Deposits
Rule 28
The Registrar may require the Parties before passing the case on to the arbitrators under Rule 38, to deposit
in advance such sums of money as he deems necessary to defray expenses of the arbitration including the
administrative charges, arbitrator's fee and stamp duties. As a general rule, the deposits shall be called for in
equal shares from the Claimant(s) and the Respondent(s). The arbitral tribunal may, during the course of the
arbitration proceedings or in the arbitration award, require further sums to be deposited by the Parties or any
one of them to meet the expenses of the arbitration. When one of the Parties neglects or refuses to make
the deposit, the Registrar or the arbitral tribunal, as the case may be, may require such deposit whether in
relation to a claim or a counter-claim, to be made by the other Party to the dispute (Claimant or Respondent
as the case may be). Should the whole or part of the deposit be not made by the Parties or any one of them,
the Registrar shall inform the Parties or the Party concerned that the claim or counterclaim, as the case may
be, will not be the subject matter of the reference. The arbitral tribunal shall proceed only in respect of
those claims or counter-claims for which the deposits has been duly paid to the Council and otherwise
may order the suspension or termination of the arbitral proceedings.
All deposits towards costs and expenses shall be made with the Council and no payment shall be released to
the arbitrators directly by the parties. The deposit made shall be taken into account by the arbitral tribunal in
apportioning the cost while making the award. Any deposit made in excess shall be refunded to such of
parties as the arbitral tribunal may direct. The Council shall have a lien for the arbitral award on any unpaid
cost of the arbitration.
Fees and Expenses
Rule 29
The arbitral tribunal shall be entitled to allow fees and expenses of witnesses, expenses connected with the
selection and carriage of sample and examination of goods, Licensed Measure's Department charges,
conveyance, hire, cost of legal or technical advice or proceedings in respect of any matter arising out of the
arbitration incurred by the arbitral tribunal, and any other incidental expenses and charges in connection with
or arising out of the reference or award as the arbitral tribunal shall, in its absolute discretion, think fit.
Rule 30
The costs of the reference and the award including charges, fees and other expenses shall be in the discretion
of the arbitral tribunal, which may direct to and by whom, and in what proportion, such charges, fees and
other expenses and any part thereof shall be borne and paid, and may tax and settle the amount of costs to
be so paid or any part thereof and may award costs to be paid as between solicitor and client. In the event,
any administrative fees and expenses are due to the Council, the arbitral tribunal may award them in favour of
the Council.
Rule 31
The fees, costs and expenses incidental to the reference and the award shall include the following :
(1) Registration Fee
The Registration fee shall be payable with regard to the amount in dispute in each case as hereunder. The
registration fee shall not be refunded and becomes the property of the Council.
(a) Rs. 15,000/- plus applicable taxes for claims upto Rs. one crore
(b) Rs.30,000/- plus applicable taxes for claims more than Rs. one crore
(2) Arbitrator's Fee and Administrative Charges

The Administrative fee (of FACT) and Arbitrator's fee (for each arbitrator) may be taken as a composite
amount, although fixed separately with regard to the amount in dispute in each case, as under:
Amount of Claim & Arbitrator's fee for
Administrative Charges
Counter Claim each Arbitrator
Upto Rs. 5 lac Rs.60,000/- Rs.45,000/-

(Rs.5,00,000/-)
From Rs.5 lac one to Rs.25 lac Rs.60,000/- plus Rs.3,000/- Rs.45,000/- plus
(Rs.5,00,001 to 2,500,000) per lac or part thereof subject Rs.2,250/- per lac or part
to a ceiling of Rs.1,20,000/- thereof subject to a ceiling of
Rs.90,000/-
From Rs.25 lac one to Rs.1 crore Rs.1,20,000/- plus Rs.90,000/- plus
(Rs.2,500,001 to 10,000,000) Rs.2,400/- per lac or part Rs.1,800/- per lac or part
thereof subject to a ceiling thereof subject to a ceiling of
of Rs.3,00,000/- Rs.2,25,000/-
From Rs.1 crore one to Rs.5 crore Rs.3,00,000/- plus Rs.2,25,000/- plus
(Rs.10,000,001 to 50,000,000) Rs.45,000/- per crore or part Rs.33,750/- per crore or part
thereof subject to a ceiling of thereof subject to a ceiling of
Rs.4,80,000/- Rs.3,60,000/-
Rs.6,30,000/- Rs.4,72,500/-
Over Rs.10 crores Rs.6,30,000/- plus Rs.4,72,500/- plus

Rs.24,000/- per crore or Rs.18,000/- per crore or part
part thereof, subject to a ceiling thereof, subject to a ceiling of
of Rs. 30 lac Rs.25 lac
Note: In addition to the Arbitrator’s Fee and the Administrative Charges referred to hereinabove, the parties
shall also deposit in advance any applicable taxes thereon including requisite stamp duties.
(3) In addition to the above
(a) The FACT will be entitled to receive a Special Fee of Rs.7,500/- plus applicable taxes
per hearing for providing facilities of hearing rooms, secretarial assistance etc. in advance
initially for ten sittings. Such expenses shall be deposited by the parties in advance as
demanded by the Registrar from time to time.
(b) Notwithstanding the provisions in Sub-Rule (2) of this Rule, the Committee/Chairman
of the Committee may prescribe the Arbitrator's fee, expenses and the Administrative
fee of the Council at a figure higher than those prescribed in the said Sub-Rules, if in
the exceptional circumstances of the case this appears to be necessary.
(c) In the event any foreign national is appointed as an arbitrator, in that event, the Registrar
in consultation with the Arbitration Committee, shall be entitled to fix additional fee
and travelling & out of pocket expenses over and above what has been prescribed under
Rule 31(2), 32 and 33 for such arbitrator.
Rule 32
Other expenses : The arbitrator may be paid an amount of Rs. 2,500/- towards local
conveyance for attending each arbitration hearing in the city of his residence. In respect of
joint trial, the hearing will be treated as one irrespective of the number of cases. Any
traveling and other expenses incurred by the arbitrator or the Registrar for attending the
arbitration hearings in a city other than the place of residence shall also be reimbursed to
him as provided hereinafter. All the above expenses shall form part of the arbitration costs.
Rule 33
(1) An arbitrator who has to travel shall be paid traveling expenses by air or rail (air
conditioned wherever available) or car (when neither air nor rail transport is available) at
actuals. In addition, he may be paid out-of-pocket expenses at actuals for boarding,
lodging and local transport subject to maximum of Rs. 20,000/- per day in metropolitan
cities and Rs. 12,000/- in all other cities. An arbitrator who makes his own arrangements
for boarding, lodging, local transport etc. may be paid out of pocket expenses at the rate
of Rs. 10,000/- per day, without production of vouchers. The limits for stay of the Registry
officials will be of those applicable to arbitrators.
(2) The cost to be incurred on payment of expenses referred to in Sub-Rule (1) to an
arbitrator nominated by a party will be borne and paid by the party nominating the
arbitrator. However, if an appointed arbitrator changes his residence after his nomination
by a party, he will not be entitled to reimbursement of any enhanced expenses for
attending the arbitration hearing, unless the party nominating him agrees to reimburse the
same to him. The expenses payable to the third arbitrator or sole arbitrator appointed by
the Council under Rule 23(a) & (b) will be borne and paid by both the parties in equal
proportion or in such other manner as may be determined by the Arbitral Tribunal.
Rule 34
Where the arbitration proceedings under an adhoc arbitration or under the rules of
arbitration of any other arbitral organisation or otherwise are administered by the Council
wholly or in respect of some matters arising out of such arbitration, the Council may charge
an appropriate fee for such administration and other services.
Rule 35
In respect of the arbitration proceedings referred to in Rule 34 hereinabove, the Council shall
be entitled to charge a fee as provided in Rule 31 (1).
Rule 36
Where the sum under dispute is not stated or in arbitration proceedings where the relief
claimed is other than a money claim, viz., a declaratory claim, the Registrar and the Arbitral
Tribunal under Rule 28, may require such deposits as may be deemed necessary to be paid
by such of the parties as may be required subject to later adjustment.
Rule 37
The amount of interest, whenever specified, will be included in the claim amount for the
purpose of calculation of arbitrator's & administrative fee. Further, claims and counter-claims
referred for arbitration shall be taken into consideration separately for the purpose of calculation
of arbitrators as well as administrative fee under Sub-Rule 31 (2).
Submission of the Case to the Arbitral Tribunal

Rule 38
(i) The Arbitral Tribunal shall be deemed to have entered on the reference on the day on
which the arbitrator or all the arbitrators, as the case may be, have received notice in
writing of their appointment by the Registrar after disposal of the challenge to their
appointment, if any, made.
(ii) The Registrar shall send copies of all papers relating to arbitration such as claim
statement, defence statement, counter claims, reply, statements, or other documents
received from the parties to the dispute to the Arbitrator/Arbitrators constituting the
Arbitral Tribunal with a request to proceed with the arbitration.
(iii) If the Claimant does not file all the requisite documents, papers, etc. or does not deposit
the appropriate fees as per the Rules after having been given due opportunity for
the purpose by the Registrar or the arbitral tribunal, the Registrar or the arbitral
tribunal may dismiss/close the case on file for lack of pursual by the Claimant.
Similarly, if the Respondent fails to produce any requisite documents, papers including
the statement of defence or information or fails to deposit administrative fees, or
arbitrators fees etc. after having been given due opportunity for the purpose by the
Registrar or the arbitral tribunal, the Registrar or the arbitral tribunal may proceed
further with the arbitration proceedings as per the Rules, notwithstanding such failure
or refusal by the Respondent.
Rule 39
Where there are two or more applications for arbitration by the Council and the issue involved
in the dispute arises out of same transactions, the Registrar may, if he thinks proper to do so and
with the consent of the Parties, fix the hearings of the disputes to be heard jointly or refer the
applications to the same Tribunal. The awards, however, shall be given separately in each case.
Notifications and/or Communications from the Registrar

Rule 40
All applications which the parties desire to make to the arbitral tribunal and all notices to be
given to the Parties before or during the course of arbitration or otherwise in relation thereto shall
be made through and sent by the Registrar who shall communicate the orders and directions of the
Arbitral Tribunal thereon to the Parties.
Amendment of Claims, Etc.

Rule 41
Amendments of the claim, defence statement, counter-claim or reply submitted to the Arbitral
Tribunal must be formulated in writing by the Party so desiring. The Arbitral Tribunal will
decide whether such amendments should be allowed or not. The Administrative fee and
Arbitrator's fee (for each Arbitrator) shall get revised to the extent of increase for such
additional claims/counter-claims. The party making such additional claim/counter-claim shall
deposit the entire fees payable in respect of such increase of additional claim as set out in the
schedule of fees in Rule 31(2).
Place of Arbitration
Rule 42
The place or venue of arbitration shall be India. The Arbitration proceedings shall be held
at such place or places in India as the Arbitral Tribunal may determine having regard to the
convenience of the Arbitrators and the Parties.
Proceedings Before the Arbitral Tribunal Conciliation
Rule 43
Optional Conciliation: The parties may opt for conciliation and request the arbitral
tribunal before the commencement of the arbitration proceedings unless they have already
agreed otherwise, to settle their dispute through conciliation as per Rules of Conciliation of
the Council.
Fast Track Arbitration

Rule 44
Fast Track Arbitration : The Parties may opt for Fast Track Arbitration and request the
arbitral tribunal, before the commencement of the arbitration proceedings, to decide the
reference in a fixed time frame of 3 to 6 months or any other time agreed between the Parties,
according to the Fast Track Arbitration procedure, as under:
(1) The arbitral tribunal will be authorized to decide the dispute on the written pleadings,
documents and written submissions filed by the Parties without any oral hearings.
(2) The arbitral tribunal shall have power to call for any further information/clarification
from the parties in addition to the pleading and documents filed by them.
(3) An oral hearing may be held if both the parties make a joint request or if the
Arbitration tribunal considers an oral hearing necessary in any particular case.
(4) If an oral hearing is held, the arbitral tribunal may dispense with any technical formalities
and adopt such procedure as it deems appropriate and necessary for economic and
expeditious disposal of the case.
Rule 45
At a hearing, a party shall be entitled to appear by counsel, attorney, advocate or a duly

authorised adviser or representative or personally. However, where the dispute is purely of a
commercial nature, the parties shall have no right to be represented by lawyers except where,
having regard to the nature or complexity of the dispute, the arbitral tribunal considers it
necessary in the interest of justice that the parties should be allowed to be represented by
counsel, attorney or advocate.
Rule 46
The arbitral tribunal may proceed with the reference notwithstanding any failure by a party
to comply with any of the directions of the arbitral tribunal and may also proceed with the
arbitral proceedings in the absence of any or both the Parties who fail or neglect to attend
at the time and place appointed by the arbitral tribunal, in spite of due notice. Rule 47
The parties shall do all acts necessary to enable the arbitral tribunal to make an award
expeditiously and shall not do or cause or allow to be done, any act which will delay the
proceedings or prevent arbitral tribunal from making an award expeditiously, and if any party
does cause or allow to be done any such act, that party shall pay such costs as the arbitral
tribunal deems reasonable.
Rule 48
The arbitration session will go on as far as possible on a day-to-day basis from 10.30 a.m.
to 4.30 p.m. once the hearing begins after completion of all the formalities. The arbitral
tribunal shall not ordinarily adjourn a hearing at the request of any party, except where the
circumstances are beyond the control of the party provided the party seeking adjournment
files a written request in advance and the arbitral tribunal is satisfied that reasons and
circumstances for the adjournment are justified. While granting an adjournment, the arbitral
tribunal may make such orders regarding payment of costs by one or both of the parties,
including exemplary costs on the party seeking adjournment without any sufficient cause,
as it deems fit and reasonable.
Rule 49
If the parties have agreed to submit their case to arbitration under these Rules and any party
refuses or fails to take part in the arbitration proceedings, the arbitral tribunal may proceed
with the arbitration notwithstanding such refusal or absence.
Rule 50
The arbitral tribunal may at its discretion at any time or times before making the final
award and at the expense of the parties concerned, consult any person having special
knowledge relating to the particular industry, commodity, produce or branch of trade
concerned in the reference or any expert or qualified accountant and may also at the like
expenses of the Parties, consult solicitors, counsel or advocates upon any technical question
of law, evidence, practice or procedure arising in the course of the reference. If the parties
agree, the arbitral tribunal may, at the expense of the Parties, appoint any expert, accountant,
or lawyers to sit with as an assessor and take into account the advice of such assessor.
Rule 51
The Parties to the reference and any witness on their behalf shall, subject to the provisions of
any law for the time being in force :
(a) submit to be examined by the arbitral tribunal on oath or affirmation in relation to the
matters in dispute.
(b) produce before the arbitral tribunal all books, deeds, papers, accounts, writings and
documents in their possession or power respectively which may be required or called for
by the arbitral tribunal.
(c) Comply with the requirements of the arbitral tribunal as to the production or selection
of samples, and
(d) generally do all other things which, during the pendency of the reference, the
arbitral tribunal may require.
Rule 52
The arbitral tribunal will consider, as far as possible, to receive the evidence of witnesses
by affidavit. Provided that the witness whose affidavit is admitted in evidence is made
available for cross-examination at the request of the opposite Party, the Arbitral Tribunal may:
(a) administer oath or affirmation to the Parties or witnesses appearing and giving evidence;
(b) make any award conditional or in the alternative;
(c) correct in any award any clerical mistake or error arising from or incidental to any slip or
omission;
(d) administer to the Parties to the arbitration such interrogatories as it may consider
necessary;
(e) decide all objections to its jurisdiction including any objection regarding the existence or
validity of the arbitration clause or the arbitration agreement, without prejudice to the
right of the parties to have the matter decided by the Court of law;
(f) decide the law governing :
(i) the contract or the matter in dispute,
(ii) the arbitration agreement, and
(iii) the arbitration procedure
(g) award interest including pendente lite interest.
Rule 53
When substantially the same dispute or questions of law and facts are likely to arise in
more than one contract or agreement (Chain Contracts), the arbitral tribunal may invite
all parties involved to agree to submit to an award in one arbitration between such two or
more of the parties as are named for the purpose.
Rule 54
(i) The arbitral tribunal may by the award dismiss the application or claim:
(a) if the Claimant does not prosecute the arbitration proceedings or file the papers within
the time granted; or
(b) neglects or refuses to pay the dues or deposits ordered to be paid by the arbitral tribunal
or the Registrar.
(ii) The arbitral tribunal may make an ex parte award :

(a) if the Respondent neglects or refuses to appear or make his defence or fails to file the
papers within the time granted; or
(b) neglects or refuses to pay the dues or deposits ordered to be paid by the arbitral tribunal
or the Registrar.
Rule 55
The Registrar shall make necessary arrangements for a stenographic record of evidence
whenever such record is required by a Party. The cost of the stenographic record and all
transcripts thereof, if any, shall form part of the costs of the reference.
Rule 56
The language of the arbitration proceedings shall be English unless otherwise agreed by the
parties. If any documents filed by a Party are in a language other than English, the Party
filling such documents shall simultaneously furnish an English translation of the documents.
The Registrar may make arrangements for the service of an interpreter at the request of one
or more of the parties and costs thereof shall form part of the costs of the reference.
Rule 57
(a) (1) Any party may, during the arbitral proceedings or at any time after the making of the
arbitral award but before its enforcement, apply to the arbitral tribunal -
(i) for the appointment of a guardian for a minor or person of unsound mind for
the purposes of arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of the following matters,
namely-
(a) the preservation, interim custody or sale of any goods which are the subject
matter of the arbitration agreement;
(b) securing the amount in dispute in the arbitration;
(c) the detention, preservation or inspection of any property or thing which is
the subject matter of the dispute in arbitration, or as to which any question
may arise therein and authorising for any of the aforesaid purposes any
person to enter upon any land or building in the possession of any party, or
authorising any samples to be taken, or any observation to be made, or
experiment to be tried, which may be necessary or expedient for the purpose
of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the arbitral
tribunal to be just and convenient.
(2) Any order issued by the arbitral tribunal shall deem to be an order of the Court for all
the purposes and shall be enforceable under the Code of Civil Procedure or any other
law for the time being in force, in the same manner as if it were an order of the Court.
(b) Appointment of Emergency Arbitrator:
(a) If a party is in requirement of urgent interim or conservatory measures, that

cannot await formation of the Tribunal, it may make an application for emergency
interim relief. The party shall notify the Registrar with a simultaneous copy thereof
to the other parties to the arbitration agreement for such measures.
(b) The party making such an application shall:
i) describe the circumstances and the nature of the urgency and the measures
sought
ii) file proof of service of such application upon the opposite parties.
(c) The party invoking the provision of Emergency Arbitrator shall deposit the
necessary fees, administrative charges and expenses decided by the Registrar in
consultation with the Chairman of the Arbitration Committee within 7 days from
the date of demand made by the Registrar.
(d) The Registrar, in consultation with the Chairman and in his absence in
consultation with the member of the Committee designated by the Chairman, shall
appoint the Emergency Arbitrator as soon as possible but not later than seven
days from the date of receipt of the fee as above.
(e) The Emergency Arbitrator so appointed shall schedule a hearing including filing
of pleadings as soon as possible but not later than seven days of his appointment.
The Emergency Arbitrator shall provide reasonable opportunity of being heard to
all the parties and upon being satisfied shall have the power to pass an interim
order.
(f) The Registrar shall ensure that the entire process from the appointment of the
Emergency Arbitrator to making the Order shall be completed within thirty days
(excluding non-business days).
(g) The Emergency Arbitrator shall become functus officio after the Order is made.
(h) The order for urgent interim or conservatory measures passed by the Emergency
Arbitrator shall not bind the Tribunal on the merits of any issue or dispute that
the said Tribunal may be required to determine.
(i) An order pursuant to the appointment of Emergency Arbitrator shall be binding

on the parties when rendered. By agreeing to arbitration under these Rules, the
parties undertake to comply with such an order or award without delay.
(j) The order passed by the Emergency Arbitrator shall remain operative unless
modified, substituted or vacated by the Tribunal.
(k) Emergency arbitrator for all purposes shall be treated as ad hoc Arbitral
Tribunal and shall have all the powers vested in the Arbitral Tribunal referred to
in Rule 57.
Waiver of Rules
Rule 58
Any party who proceeds with the arbitration with the knowledge that any provision or
requirement of these rules has not been complied with and who fails to state his objection
thereto in writing, shall be deemed to have waived his right to object.
Return of Documents
Rule 59
Unless required to be filed in a Court of law, the arbitral tribunal shall have full discretion to
retain/to return all books, documents or papers produced before it and may direct at any time
that the books, documents or papers produced before it or any of them may be returned to
the parties producing them on such terms and conditions as the arbitral tribunal may impose.
Award
Rule 60
No award shall be made by the arbitral tribunal unless the case of the party applying for
arbitration has been brought to the notice of the other party and until after the lapse of such
specified time within which he has been asked to submit his defence statement under Rule 18.
Rule 61
Whenever there is more than one arbitrator, the award of the majority shall prevail and be
taken as the decision of arbitral tribunal. Failing a majority, the Presiding Arbitrator of the
arbitral tribunal alone shall make the award.
Rule 62
Should the Parties arrive at a settlement of the dispute by common agreement before the
Arbitral Tribunal and the Arbitral Tribunal is satisfied that such agreement is genuine and not
to defeat the purpose of any law, the arbitral tribunal shall render an award as per agreement
of the Parties. Otherwise, the arbitral tribunal shall make the award on the basis of the
documents, evidence, etc. filed before it by the Parties.
Rule 63
(i) The Arbitral Tribunal shall make the award as expeditiously as possible, preferably
within six months, from the date of the reference subject to a maximum limit of twelve months
from the date on which arbitral tribunal entered into reference in terms of Rule 38.
(ii) The parties mutually agree to waive their right of consent and confer upon the Registrar
the right to extend the time for making of an award for a further period of six months, if applied
for, by any of the parties, provided such request is found to be reasonable and necessary.
(iii) If the award is not made within the aforesaid period of 12 months or 18 months, as the
case may be, the mandate of the arbitrator shall terminate unless the Court has either prior to
or after the expiry of the period further extended the period for passing of award.
(iv) In the event, the arbitrators are substituted by the Court under the Act, the arbitration
proceedings may continue from the stage it has reached and on the basis of the evidence and
material already on record and the arbitrator(s), so appointed, shall be deemed to have received
the said evidence and material. The Arbitral Tribunal, so reconstituted, shall deemed to be in
continuation of the previously appointed Arbitral Tribunal.
(v) The arbitrators shall not be entitled to any fees in the event of cancellation of their
mandate for not making of the award within the time specified.
(vi) After the constitution of the arbitral tribunal and during the arbitral proceedings if any
party makes a challenge as to the independence and impartiality of the arbitrator, the arbitral
proceedings shall remain suspended during the period such challenge is decided.
(vii) If such challenge is rejected, the arbitral tribunal shall be at liberty to impose such
exemplary cost on the party making challenge as it may be decided by the arbitral tribunal.
(viii) In the event such challenge is upheld, the arbitrators so challenged shall stand discharged
and shall not be entitled to any fees.
(ix) The period during which the arbitral proceedings remain suspended shall be excluded from
the period within which the award is to be made in terms of rule 63(1).
Rule 64
The arbitral award shall state the reasons upon which it is based, unless :
(i) the parties have agreed that no reasons are to be given, or
(ii) the award is an arbitral award on agreed terms.

Rule 65
The arbitral award shall state its date and the place of arbitration and the award shall be deemed
to have been made at that place.
Rule 66
The arbitral tribunal may make an interim award, and may, by an award, determine and order
what shall be done by either or any of the Parties, respecting the matters referred.
Rule 67
The arbitrators constituting the arbitral tribunal or the Presiding Arbitrator where Rule 61 is
applicable, shall sign the award and the Registrar shall give notice in writing to the Parties of
the making and signing thereof and of the amount of fees & charges payable in respect of the
arbitration and the award. The arbitrators fee shall be payable by the Council on receipt of the
award and requisite deposit made by the parties.
Rule 68
(a) When an award has been made, the Registrar shall furnish a true copy of the award to
the parties by registered post provided the arbitration costs have been fully paid to the
Council by the parties or by one of them.
(b) The Registrar may require either Party to notify him of the compliance
with the award.
(c) The arbitral tribunal and the Registrar of the Council shall assist the parties in
complying with any formalities that may be necessary for the enforcement of the award
or for other purposes.
(d) The Council may print, publish or otherwise circulate any award made under its
rules or under its auspices, in any arbitration journal, magazine, report, etc. for the
purpose of creating arbitration jurisprudence or precedents for the benefit and guidance
of future arbitrations. No party to the arbitration shall have any objection to the
publication of awards as above provided that the names and addresses of any Party to
the dispute will be omitted from such publication and its identity duly concerned if so
desired by such party.
Rule 69
Additional copies of the award certified true by the Registrar shall be made available to the
parties but to no one else, at all times at request and on payment as fixed by the Registrar.
Rule 70
A party shall in all things abide by and obey the award which shall be binding on the
Parties and their respective representatives, notwithstanding the death of any party before
or after the making of the award and such death shall not operate as revocation of the
submission or reference. To avoid delays and further litigation, the arbitrators/Registrar shall
ask the Parties to agree that the award made by the arbitrators/s shall be final and binding on
the Parties and neither Party shall be entitled to challenge it in the Court of law.
Filing of Award
Rule 71
The arbitral tribunal shall at the request of any of the Parties to the proceedings or of any
person claiming under a Party or if so directed by the Court and upon payment of fees
and charges due in respect of the arbitration and award and of the costs and charges of
filing the award, cause the award or a signed copy thereof together with the deposition or
documents which may have been taken and proved before it to be filed before the Court.
Rule 71-A
Correction, Interpretation and Remission of Awards

(a) Within thirty days from the receipt of arbitral award, a party, through the Registrar, may
request the Arbitral Tribunal to correct any computation errors, any clerical or typographical
errors or any other errors of similar nature occurring in the Award.
(b) The Registrar shall thereafter forward the request to the Tribunal with a copy to the other
party.
(c) A party, through the Registrar, may request the Tribunal to give an interpretation of a
specific point or part of the award.
(d) If Tribunal considers the request made under sub-section (c) to be justified, it shall make
the corrections or give the interpretation within thirty days from the receipt of such request
and interpretation shall form part of the arbitral award.
(e) The Tribunal may also correct any error of the type referred to under sub-section (a), on
its own initiative, within thirty days from the date of the arbitral award.
(f) A party, through the Registrar may request, within thirty days from the receipt of the
arbitral award, the Tribunal to make an additional award as to claims presented in the arbitral
proceedings but omitted from the arbitral award. The Registrar shall forward the request to
the Tribunal with the copy to the parties.
(g) If the Tribunal considers the request made under sub-section (f) to be justified, it shall
make the additional arbitral award within sixty days from the receipt of such request.
(h) The Tribunal may extend, if necessary, the period of time within which it shall make a
correction, give an interpretation or make an additional arbitral award under sub -sections
(a), (c) and (f).
Rule 72
A fee of Rs. 5,000/- plus incidental expenses at actuals in addition to the court fees, on the
scale for the time being in force is payable by the party requiring the award to be filed.
Stamp Duties
Rule 73
(a) Deficient stamp duties, if any, are to be paid by the parties in equal share in all cases in
accordance with the scale of stamp duties for the time being imposed by law.
(b) In case of an ex-parte Award, the entire stamp duty shall be paid by the Claimant in
accordance with the scale of stamp duties for the time being imposed by law.
Copies of Proceedings
Rule 74
No party is entitled as of right to copies of proceedings before the arbitral tribunal. In case
the Registrar is required to furnish copies of depositions and/or documents which have
been taken or proved before the arbitrator, a charge as demanded by the Registrar shall be
paid by the party requiring such copies.
Rule 75
The Registrar shall, upon the written request of a party, furnish to such party at his expense
certified facsimile of any documents filed in the arbitration proceedings.
Cases Withdrawn
Rule 76
When the party instituting a case desires to withdraw it before an arbitral tribunal has been
constituted, the Registrar shall return to him any deposits made by him, under Rule 28,
after deducting such charges as he might have incurred in connection with the cases. The
registration fee, however, shall not be refundable.
Rule 77
If the arbitration is terminated by the act or default of any parties after constitution of the
arbitral tribunal and before the award is made, any fee, charges, deposited by the Parties shall
not be refunded.
Indemnity of Secretariat and Arbitrators
Rule 78
The Council, the Arbitration Committee and officers of the Council shall not be liable
for any act or omission in whatever capacity they may have acted in connection with or in
relation to an arbitration under these Rules. Parties are themselves required to contest the
proceedings regarding the validity of the arbitration agreement before the court.
Rule 79
No party shall bring or prosecute any suit or proceedings whatsoever against the
C o u n c i l , arbitral tribunal, or any member thereof, for or in respect of any matter or
thing purporting to be done under these Rules nor any suit or proceedings in respect thereof
(save for enforcement of the award) against the other party.
Costs
Rule 80
(a) If the arbitral tribunal decides to make an order as to the payment of costs with interest on
costs – the general rule is that the unsuccessful party shall be ordered to pay such costs
with interest as may be determined by the arbitral tribunal to the successful party or the
arbitral tribunal may make different orders for reasons to be recorded in writing.
(b) In determining the costs, the arbitral tribunal shall refer to all the circumstances including:–
(i) the conduct of all the parties;

(ii) whether a party has succeeded partly in the case;
(iii) whether the party had made a frivolous counter claim leading to delay in disposal of
arbitral proceedings;
(iv) whether any reasonable offer to settle the dispute is made by a party and refused by
the other party.
Amendment of Rules
Rule 81
The Governing Body may revise, amend or alter these rules or the schedule of fees and other
monies to be charged and paid as and when expedient and necessary.
GUIDELINES FOR ARBITRATORS
F
AND PARTIES
Annexure – I
GUIDELINES FOR ARBITRATORS AND THE PARTIES FOR EXPEDITIOUS
CONDUCT OF ARBITRATION PROCEEDINGS
1. The arbitrators and the parties to arbitration are expected to follow these guidelines to ensure economic
and expeditious disposal of arbitration cases.
For Arbitrators
2. The arbitrators must take up the arbitration expeditiously on receipt of the request from the Council and
should also complete the same with reasonable despatch. Serious efforts should be made to settle
arbitration cases expeditiously within a period of 6 months where the amount of claim exceeds 1 crore
and within a period of 4 months where the amount of claim is less than Rs.1 crore.
3. When accepting his mandate, the arbitrator shall be able to perform his task with the necessary
competence according to his professional qualifications.
4. When giving notice of his acceptance, the arbitrator shall disclose in writing in the printed format as
under:
- any relationship with the parties or their counsel which may affect his independence and impartiality;
- any personal or economic interest, either direct or indirect, in the subject matter of the dispute;
- any prejudice or reservation as to the subject matter of the dispute which may affect his impartiality.
- Where necessary due to supervening facts, this Statement shall be repeated in the course of the entire
arbitral proceedings until the award is filed.
5. Where facts that should have been disclosed are subsequently discovered, the arbitrator may either
withdraw or be challenged or the FICCI may refuse to appoint him in other arbitral proceedings on
this ground.
6. The arbitrator may at all stages suggest the possibility of a settlement to the parties but may not influence
their decision by indicating that he has already reached a decision on the dispute.
FICCI
AND PARTIES
7. In the course of the arbitral proceedings, the arbitrator shall refrain from all unilateral contact with the
parties or their counsel which is not notified to the FACT so that the Council can inform the other
parties and arbitrators.
8. The arbitrator shall refrain from giving the parties, either directly or through their counsel, notice of
decisions in the evidence taking place or on the merits; notice of these decisions may be given exclusively
by the FACT.
9. The arbitrator shall neither request nor accept any direct arrangement on costs or fees with the party
which has designated him. The arbitrator is entitled to reimbursement of expenses and a fee as
exclusively determined by the FACT according to its Schedule of Fees, which is deemed to be approved
by the arbitrator when accepting his mandate.
10. The arbitrator shall encourage a serene and positive development of the arbitral proceedings. In
particular, he shall decide on the date and manner of the hearings in such a way as to allow both parties
to fully participate therein, in compliance with the principle of equal treatment and adversarial
proceedings.
11. The first hearing of the arbitral tribunal should be convened within 15 days of the receipt of the
complete reply of the respondent when the arbitral tribunal may issue necessary directions. Admission
and denial of the documents may be got done by the Registrar. Issues if any to be framed, may be done
at the same or at the next hearing. The arbitrators should hold arbitration hearings continuously on day-
to-day basis during office hours.
12. The parties should be asked to furnish a list of their witness, if any, in advance and they should be asked
to file affidavits of witness on the date fixed for evidence preferably within a weeks of the settlement of
issues, Cross examination of such of the deponent's witnesses whose presence is demanded by the
opposite party should be completed at a hearing to be fixed within 15 days.
13. Arguments preferably should be heard within 15 days of the completion of evidence, to be followed by
submission of written arguments, if any.
14. Adjournments of duly fixed hearing should not be granted except for unavoidable reasons which should
be spelt out in the adjournment order.
15. The Arbitrator should make the award expeditiously after the close of the hearings, preferably within 15
days.
FICCI
AND PARTIES
16. The arbitrator who does not comply with the provisions of these guidelines may be replaced by the
Committee. Where it is not appropriate to replace the arbitrator in order not to cause delay in the arbitral
proceedings, the FACT may also take such action after the conclusion of the arbitral proceedings,
by refusing to confirm him in subsequent arbitral proceedings.
For Parties
17. The claimant should file the applications or demand for arbitration to the Registrar of the Council with
all the information and papers as per Rules, full statement of claim and copies of documents relied upon,
in 3 sets in case of a Sole Arbitrator and in 5 sets in case of three arbitrators.
18. The respondent should file his reply to the claim with complete information and documents relied upon,
in 3 or 5 sets as above as early as possible within the prescribed time. Fresh documentation/claims should
not be entertained at a later stage of the proceedings unless the arbitral tribunal is satisfied about the
reasons for granting such permission.
19. If any party to arbitration, particularly in cases where any arbitrator, advocate or any of the parties has to
come from out station to participate in arbitration proceedings, desires to seek adjournment on any valid
ground, it must submit a written request to the Registrar at least before 5 working days stating the
grounds which compel it to request for postponement of the hearing so that the Council is in a position
to take necessary steps to inform the Parties, Arbitrators and Advocates regarding postponement of the
hearing. Parties seeking adjournment will have to pay cost as may be determined by the arbitral tribunal.
20. Parties should deposit arbitration and administrative fees with the Council (FACT) within the stipulated
time, as per the Rules and no extension should be sought in this behalf except for compelling reasons.
21. To avoid excessive costs in arbitration proceedings, the parties are advised to choose their arbitrators
from the Panel, as far as possible from the place where the arbitration hearings have to be held. In case, a
party still chooses an arbitrator from a place other than the place of hearing, the concerned party will
bear the entire extra cost to be incurred on stay TA/DA etc. of the arbitrator nominated by it.
For Arbitration Committee

22. The Arbitration Committee of the Council may examine the arbitration case file, from time to time to
evaluate the progress of the proceedings and to ascertain whether the arbitrators have granted
adjournments only on reasonable grounds.
23. The Arbitration Committee shall be sole judge of the grounds of violation of the guidelines and its
decision shall be final and binding on the arbitral tribunal as well as the parties.
FICCI
FACT CODE OF CONDUCT
Preamble/Purpose
Objective of the Code:
With a view to make arbitration Efficient, Simple, Just, User Friendly, Speedy, Trust worthy, Equitable,
Serviceable and at relatively Low Cost this Code aims to establish a set of standards for Arbitration Committee,
Arbitrators, Parties and Counsel and they are expected to confirm to such standards while discharging
their respective duties under the auspices of the FICCI.
This code has been formulated in the wake of a fundamental principle that only an arbitration institution can
guarantee the enforcement of such ethical norms, which is required at various stages of arbitration right from
the appointment of an arbitrator till the rendering of an arbitration award. However, at hoc arbitration can,
as a self regulatory measure, adopt this code of conduct to generate confidence in the institution of
arbitration in general. As this code evolves over the years, it would be a continuing objective to revise and
update it from time to time to keep pace with International Standards.
The Code is set out in four parts:
Part I Code of Conduct for the Arbitration Committee.
Part II Code of Conduct for the Arbitrator.
Part III Code of Conduct for the parties.
Part IV Code Conduct for the Counsel.
Part I- Code of Conduct for the Arbitration Committee:
1.1) The members of the Arbitration Committee may be appointed as Arbitrator during their term of
office.
1.2) The Arbitration Committee, while appointing arbitrator/s in a case shall have regard to the following
criteria:
a) Nature of the dispute
b) Availability of the Arbitrators
c) Identity of the parties

FICCI
d) Independence and impartiality of the arbitrator
e) Any stipulation made in the Arbitration Agreement of the parties
f) Past record of the Arbitrator
1.3) The Arbitration Committee may, in case of non-availability of an arbitrator of required skills and
experience, consider a non-panelist for appointment. The above stated criteria shall apply in such case
as well.
Part II- Code of Conduct for the Arbitrators:
2.1.1) This Code of Conduct shall apply to all Arbitrators on the Panel.
2.1.2) Every person nominated as an arbitrator in a case shall make disclosures as specified in the Arbitrators'
Declaration of Acceptance of Responsibility and State of Independence.
2.1.3) The Arbitrators are expected to conduct themselves in a manner consistent with the rules and the
policies of the FACT.
2.1.4) The Arbitrator/s shall follow the Guidelines for expeditious conduct of Arbitration proceedings,
Annexed to the FACT Rules of Arbitration.
2.2) Duties of Arbitrators (general):
2.2.1) To act with honesty, integrity, diligence and dignity to which the profession of dispute resolution is
associated: the arbitrator shall-
– Recognize a responsibility to the public, parties and to all other participants in the proceedings;
– Not solicit appointment only if he believes that he is adequately competent and qualified and
can conduct the proceedings promptly;
– Refrain himself from entering into any kind of relationship with the parties or the counsel,
while serving as an arbitrator, that is likely to affect his impartiality;
– Not accept any gift or substantial hospitality, directly or indirectly from any party to the
arbitration.
FICCI
2.2.2) To disclose any interest or relationship with the parties: the Arbitrator shall have a continuing duty-
– Disclose any direct or indirect financial or personal interest in the outcome of the arbitration;
– Disclose any existing or past relationship or interest that might affect this impartiality or might
create a reasonable apprehension of bias.
2.2.3) To be faithful to the relationship of trust and confidentiality inherent in his office: the Arbitrator
shall-
– Not, at any time, use confidential information acquired during the Arbitration Proceedings to
gain personal advantage or advantage for others, or to affect adversely the interest of another;
– Keep all the information relating to the proceedings confidential unless the parties otherwise
agree or any law requires him to disclose;
– Not disclose the decision in advance of the time given to the parties.
2.3) Conduct of Proceedings:
2.3.1) To conduct the proceedings fairly and diligently: the arbitrator shall-
– Adhere to the concepts of fairness, patience, courteousness, and equality;
– Ascertain from the parties about the method of record of proceedings;
– Afford full opportunity to other arbitrators, if any, in the case to participate in all aspects of the
proceedings;
– Act within the scope of authority set out in the arbitration agreement;
– Follow the procedure, if any, set out in the agreement;
– Not discuss the case with any party in the absence of the other party unless otherwise provided
for in the agreement or if the circumstances require him to do so.
– Provided that due notice is served and the substance of such meeting is promptly conveyed to
the other party.
FICCI
2.3.2) To conduct the proceedings as expeditiously as possible: the Arbitrator shall-
– Prepare a time table consistent with the Rules of FACT, at the first meeting along with the
parties fixing the periods of submission of statements, evidence, hearing, award etc;
– Strictly adhere to such time table and no latitude or indulgence on such requirement should be
entertained except for bona fide reasons to be recorded.
– Submit a performance statement reflecting the extent of conformity to the time table, after the
completion of every stage of proceedings.
– Not to allow any lapse of time in between the steps to be taken inter se as also between
conclusion of such steps and the commencement of hearing, and to have as far as possible
continuous hearing from day to day from Monday to Friday wherever required.
2.4) Others
2.4.1) Regarding the fee: the Arbitrator shall be governed by the pre-arranged fee structure of FACT,
and shall not enter into any direct arrangement with the parties.
2.4.2) Decision-Making: the Arbitrator shall decide all matters justly, exercising independent judgment and
should not permit outside pressure to effect the decisions. He shall also construct the award in a
logical order, centered around the following principal elements:
– Brief summary of facts
– Disputes/issues referred to arbitration
– Averment of the parties on each of the issues
– Evidence led, if any
– Statement, in respect of each point, of the applicable Rules of Law and application of said rule
to the issue being examined.
– Reasons for the award.
Part III- Code of Conduct for the parties:
3.1) The parties shall maintain the dignity of Proceedings and shall act with honesty and diligence.
FICCI
3.2) The parties shall follow the Guidelines for Expeditious Conduct of Arbitration Proceedings annexed
to the FACT Rules of Arbitration.
3.3) The parties shall deposit the sum required by the Registrar within the stipulated time period.
3.4) The parties shall respond in a timely manner to reasonable requests for information from the
arbitrator or other party/ies.
3.5) The parties shall strictly conform to the timetable (set out by the arbitrator in the first meeting) and
submit all relevant documents and statements within the time period set out in the timetable.
3.6) The parties shall not extend any hospitality, directly or indirectly to the Arbitrator/s.
3.7) The parties shall pay the fees as agreed and their share of costs as specified in the Award.
3.8) The parties shall follow all orders/directions/rulings given by the arbitrators/s during the
Proceedings.
3.9) The Parties shall avoid any kind of dilatory tactics and shall make maximum/best/ all possible efforts
for an expeditious resolution of the dispute.
Part IV Code of Conduct for the Counsel:

4.1) The Counsel shall fully co-operate with the parties and the Arbitrator/s during the Arbitration
Proceedings.
4.2) The Counsel shall be bound by the code of conduct prescribed by the Bar Council of India.
FACT RULES OF CONCILIATION
FICCI (As Amended on and With Effect From 01-04-2016)
FACT CONCILIATION CLAUSE

Parties to a contract who agree to resolve their contractual disputes in accordance with the FACT Rules
of Conciliation and to have the FACT act as appointing authority and/or to provide administrative
services, may use the following clause:
“If a dispute arises out of or in connection with this contract, or in respect of any defined legal relationship associated
therewith or derived therefrom, the parties agree to seek an amicable settlement of that dispute by conciliation under the
FACT Rules of Conciliation. The authority to appoint the conciliator/conciliators shall be the FICCI. The FICCI will
provide administrative service in accordance with the FACT Rules of Conciliation”.
Note: Parties may wish to consider adding the following:
(a) The number of conciliator(s) shall be.......................................................................................................................
(b) The language of the conciliation proceedings will be .............................................................................................
(c) Specific qualifications of the conciliator(s) including, but not limited to, language, nationality, technical
qualifications and experience.
1. Preliminary
Short title and scope
1. (1) These rules may be called the FACT Rules of Conciliation.
(2) These rules shall apply where the parties have agreed in writing, that-
(a) A dispute which has arisen, or
(b) A dispute which may arise, between them in respect of a defined legal relationship, whether
contractual or not, should be resolved by amicable settlement under the FACT Rules of
Conciliation.
(3) These rules shall not apply to disputes which by virtue of any law, for the time being in force, may
not be submitted to conciliation.
2. Definitions
2. In these unless rules, the context otherwise requires-
a) “Arbitration Committee” means the Arbitration Committee of FACT;

b) “Chairman” means the Chairman of the FACT Arbitration Committee;
c) “Rules of Conciliation” or “rules” means the FACT Rules of Conciliation
d) “Governing Body” means the Governing Body of FACT;
e) “FACT” means the FICCI, New Delhi:
f) “Panel of conciliators” means the panel of persons approved by the Arbitrator Committee to act as
conciliators;
g) “Party” means a party to the agreement referred to in rule 1 (2);
h) “Schedule” means the Schedule to these rules.
Part-A
Rules of Procedure for Conciliation
3. Commencement of Conciliation Proceedings
3. (1) The party initiating conciliation shall send to the other party a written invitation to conciliate under
these rules, briefly identifying the subject of the dispute.
(2) Conciliation proceedings shall commence when the other party accepts in writing the invitation to
conciliate.
(3) If the other party rejects the invitation, there will be no conciliation proceedings.
(4) If the party initiating conciliation does not receive a reply within thirty days from the date on which
he sends the invitation, or within such other period of time as specified in the invitation, he may
elect to treat this as a rejection of the invitation to conciliate and inform the other party accordingly.
4. Number and appointment of Conciliators

4. (1) These shall be one conciliator unless the parties have agreed that there shall be two or three
conciliators.
(2) The parties may agree to enlist the assistance of the FACT in connection with the appointment
of conciliator, and in particular:-
(a) A party may request the FACT to recommend the names of suitable individuals to act
as conciliator;
or
(b) Where the agreement between the parties provides for the appointment of conciliator by the
FACT, a party may request the FACT in writing to appoint a conciliator.
(3) Where a request in pursuance of clause (a) or clause (b) of sub-rule (2) is made to the FACT, the
party making the request shall send to the FACT.-
(a) A copy of the invitation to conciliate;
(b) A copy of the agreement, if any, between the parties providing for an amicable settlement of
dispute between them by conciliation;
(c) A copy of the agreement, if any, between the parties providing for an amicable settlement of
dispute between them by conciliation;
(d) Any qualifications required of the conciliator;
(e) Any additional information, if required, by the FACT.
(4) In recommending or appointing an individual to act as conciliator, the FACT will follow the
procedure specified in rule 24 and will have regard to
(a) Any qualifications required of the conciliator by the agreement of the parties;
(b) Such considerations as are likely to secure the appointment of an independent and impartial
conciliator, and
(c) Where, the parties are of different nationalities, the advisability of appointing a conciliator of a
nationality other than the nationalities of the parties.
(5) A successor conciliator will be appointed in the manner in which his predecessor had been
appointed.
5. Submission of Statement of Conciliator

5. (1) Conciliator may, upon his appointment, request each party to submit to him and to FACT within 30
days a brief statement in writing describing the general nature of the dispute, the points at issue and
the amount, if any, of the claim including counter claim. Each party shall send a copy of such
statement to the other party. Any party may file Defence Statement to Claim or Counter within 15
days of receipt of Statement of Claim or Counter Claim.
(2) The conciliator may request each party to submit to him and to the FACT a further statement
in writing of his position and the facts and grounds in support thereof, supplemented by any
documents and other evidence that such arty deems appropriate. The party shall send a copy of such
statement, documents and other evidence to the other party.
(3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him and
to the FACT such additional information as he deems appropriate.
6. Representation and Assistance

6. Each party shall advise in writing, the other party and the conciliator of-
(a) The name and address of any person who will represent or assist him, and
(b) The capacity in which that person will represent.
7. Role of Conciliator
7. (1) The conciliator shall assist the parties in an independent and impartial manner in their attempt to
reach an amicable settlement of their dispute.
(2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration
to, among other things, the rights and obligations of the parties, the usages of the trade concerned
and the circumstances surrounding the dispute, including any previous business practices between the
parties.
(3) The conciliator may conduct the conciliation proceedings in such manner as he considers
appropriate, taking into account the circumstances of the case, the wishes of the parties, including
any request by a party that the conciliator hear oral statements, and the need for a speedy settlement
of the dispute.
(4) 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 therefore.
(5) The Conciliator shall assist the parties to negotiate between themselves a mutually acceptable
resolution of dispute by:-
(a) Helping the parties to identify and define the issues in dispute.
(b) Develop a procedure in consultation by the parties which is quick, fair and cost effective.
(c) Helping the parties in narrowing the issues.
8. Administrative Services
8. The FACT will arrange the administrative services specified in Part B if-
(a) The parties designate the FACT for arranging such services in the agreement to conciliate;
(b) The parties, or the conciliator with the consent of the parties, request the FACT to arrange
such services.
9. Communication between Conciliator and Parties

9. (1) The conciliator may invite the parties to meet him or may communicate with them orally or in
writing. He may meet or communicate with the parties together or with each of them separately.
(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held,
such place shall be determined by the conciliator, taking into consideration the circumstances of
the conciliation proceedings.
Provided that where administrative assistance by the FACT is sought under Rule 8, the place
where meetings with conciliator are to be held shall be determined in consultation with the FACT.
10. Disclosure of information

10. When the conciliator receives factual information concerning the dispute from a party, he shall disclose
the substance of that information to the other party in order that the other party may have the opportunity
to present any explanation which he considers appropriate;
Provided that when a party gives any information to the conciliator, subject to a specific condition that it
be kept confidential, the conciliator shall not disclose that information to the other party.
11. Cooperation of parties with Conciliator

11. The parties shall in good faith to cooperate with the conciliator and, in particular, shall endeavour to
comply with requests by the conciliator to submit written materials, provide evidence and attend meetings.
12. Suggestions by parties for settlement of dispute

12. Each party may, on his own initiative or at the invitation of the conciliator, submit to the conciliator
suggestions for the settlement of the dispute.
13. Settlement Agreement

13. (1) When it appears to the conciliator that there exist elements of a settlement which may be acceptable
to the parties, he shall formulate the terms of a possible settlement and submit them to the parties
for their observations. After receiving the observations of the parties, the conciliator may
reformulate the terms of a possible settlement in the light of such observations.
(2) If the parties reach an agreement on the settlement of the dispute, they may draw up and sign a
written settlement agreement. If requested by the parties, the conciliator may draw up, or assist the
parties in drawing up the settlement agreement.
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and
persons claiming under them respectively.
(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the
parties.
14. Confidentiality
14. The conciliator and the parties shall keep confidential all matters relating to the conciliation proceedings.
Confidentiality shall extend also to the settlement agreement, except where its disclosure is necessary for
purposes of its implementation and enforcement.
15. Termination of Conciliation Proceedings

15. (1) The conciliation proceedings shall be terminated-
(a) By the signing of the settlement agreement by the parties on the date of agreement; or
(b) By a written declaration of the conciliator, after consultation with the parties, to the effect that
further efforts at conciliation are no longer justified, on the date of the declaration; or
(c) By a written declaration of the parties addressed to the conciliator to the effect that the
conciliation proceedings are terminated, on the date of the declaration; or
(d) By a written declaration of a party to the other party and the conciliator, if appointed, to the
effect that the conciliation proceedings are terminated, on the date of the declaration.
(e) If any of the parties fails to make deposit of cost, fee and expenses within the time specified.
(2) The conciliator shall, upon termination of the conciliation proceedings, send an intimation thereof in
writing to the FACT.
16. Resort to Arbitral or Judicial Proceedings

16. The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in
respect of a dispute that is the subject matter of the conciliation proceedings, except that a party may
initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving
his rights.
17. Costs
17. (1) The fee of the conciliator and administrative fee shall be fixed by the FACT in accordance with
the Schedule, which may be amended from time to time.
Provided that the FACT may, on request from the conciliator, fix the fee of the conciliator at a figure
higher than that set out in the Schedule if, in exceptional circumstances of the case, this appears to be
necessary.
(2) For the purpose of sub-rule (1), “costs” means costs relating to-
(a) The fee and expenses of the conciliator and witnesses requested by the conciliator with the
consent of the parties.
(b) Any expert advice requested by the conciliator with the consent of the parties;
(c) Any assistance provided pursuant to rule 4 (2) and rule 8;

(d) Any other expenses incurred in connection with the conciliation proceedings and the settlement
agreement.
(3) Where more than one conciliator is appointed, each conciliator shall be paid separately the fee set out
in the Schedule.
(4) The costs shall be borne equally by the parties unless the settlement agreement provides for a
different apportionment. All other expenses incurred by a party shall be borne by that party.
18. Deposit
18. (1) The Registrar of FACT, upon appointment of conciliator, call upon each party to deposit with the
FACT an equal amount as an advance for the conciliator and administrative fee and costs referred
to in rule 17(1) to 17(4).
(2) Subject to any settlement agreement, upon termination of the conciliation proceedings, the FACT
shall apply the deposits to the costs of the proceedings, render an accounting to the parties of
the deposits received and applied and return any unexpended balance, to the parties.
19. Role of Conciliator in other proceedings

19. Unless otherwise agreed by the parties:-
(a) The conciliator shall not act as an arbitration or as a representative or counsel of a party in
arbitral or judicial proceedings in respect of a dispute that is the subject-matter of the
conciliation proceedings;
(b) The conciliator shall not be presented by the parties as a witness in any arbitral or judicial
proceedings.
20. Admissibility of evidence in other proceedings

20. The parties shall not rely on or introduce as evidence in arbitral or judicial proceedings, whether or
not such proceedings relate to the dispute that is the subject-matter of the conciliation proceedings:-
(a) Views expressed or suggestions made by the other party in respect of a possible settlement of
the dispute;
(b) Admissions made by the other party in the course of conciliation proceedings;
(c) Proposals made by the conciliator;
(d) The fact that the other party had indicated his willingness to accept a proposal for settlement
made by the conciliator.
21. Interpretation and application

21. If any question arises as to the interpretation or application of these rules or any procedural matters
thereunder, the decision of the Arbitration Committee shall be final and binding on the parties.
Part B
Services for Procedure under
the Rules of Conciliation
22. To facilitate the conduct of conciliation proceedings that the parties have agreed to conduct
under the Rules of Conciliation, the FACT will-
(a) Perform the functions of the appointing authority whenever-
(i) The FACT has been so designated by the parties in the conciliation clause of their contract
or in a separate agreement, or
(ii) The parties have agreed to submit a dispute to the FACT under the Rules of
Conciliation without specifically designating it as the appointing authority; and
(b) Provide the administrative services herein specified by all the parties, or by the conciliator with
the consent of the parties.
23. Services as the Registry

23. (1) On receiving a request in pursuance of rule 4(2) (a) or 4(2) (b), the FACT will register the request
and intimate in writing to the parties, the registration number of the case which shall be quoted
by the party while making any subsequent communication to the FACT.
(2) The FACT will scrutinize every request and document, make necessary entries in the register and
prepare a file of the case.
24. Services as recommending or appointing authority

24. (1) On receipt of a request in pursuance of rule 4(2) (a), the FACT will communicate to the party
making the request a list containing the names, addresses, nationalities and a description of
qualifications and experience of at least three individuals from the panel of conciliators.
(2) On receipt of a request to appoint a conciliator in pursuance of rule 4(2) (b), the FACT will follow
the following procedure-
(i) The FACT will communicate to each party a list containing the names, addresses nationalities
and a description of qualifications and experience of at least three individuals from the
panel of conciliators;
(ii) Within thirty days following the receipt of the list, a party may delete any name to which he
objects and after renumbering the name in the order o his preference, return the list to the
FACT.
(iii) On receipt of the list returned by the parties, the FACT will appoint the conciliator from
the list taking into account the order of preference indicated by the parties;
(iv) If for any reason the appointment cannot be made according to the procedure specified in
clauses (i) to (iii), the FACT may, unless the parties recommended the name of the conciliator
to be appointed by the FACT, appoint the conciliator from the panel of conciliators.
(3) In recommending or appointing a conciliator the FACT will have regard to the matters referred
to in rule 4(4) and will carefully consider the nature of the dispute in order to include in the
list, persons having appropriate professional or business experience, language ability and
nationality.
(4) All appointments on behalf of the FACT will be made by the Arbitration Committee.
25. Administrative Services

(25)(1) The FACT may provide the administrative services specified in this part-
(a) Upon the request of the parties;
(b) Upon the request of the conciliator with the consent of the parties; or
(c) If the parties designate the FACT for providing such services.
(2) All oral or written communications from a party to the conciliator, except at meetings, may be
directed to the FACT which will transmit them to the conciliator and, where appropriate, to the other
party.
(3) Agreement by the parties that the FACT will provide the administrative services, constitutes consent
by the parties that, for purposes of compliance with any time requirements of the rules, any written
communications shall be deemed to have been received by the addresses when received by the FACT.
When transmitting communications to a party, the FACT will do so to the addresses provided by
each of them to the FACT for this purpose.
(4) The FACT will also assist in the exchange of information and settlement of proposals.
(5) The FACT will assist the conciliator to establish the date, time and place of meetings and will give
the parties advance notice of such meetings.
(6) The FACT will provide a meeting room for the conciliator and the parties or their counsel in
the offices of the FACT on the charges set out in the Schedule. However, where these facilities
are provided in any place other than the offices of the FACT, the charges will be determined by the
FACT and billed separately in each case.
(7) Upon request, the FACT will make arrangements for reporter transcripts of meetings or hearing.
(8) Upon request, the FACT will make arrangements for the services of interpreters or translators.
The cost of interpretation or translation will be determined by the FACT and billed separately and
is not included in the fee for administrative services.
(9) (a) The FACT will hold advance deposits to be made towards the costs of the
conciliation proceedings.
(b) On termination of the conciliation proceedings, the FACT will apply the proceeds of the advance
deposits towards any of its unpaid administrative fee and charges and the costs of the
conciliation proceedings and will render an accounting to the parties of the deposits received
and applied and return any unexpended balance to the parties.
(10) (a) Upon request, the FACT will provide other appropriate administrative services the cost of which
will be determined by the FACT and billed separately and are not included in the fee
for administrative services.
(b) The kinds of services which can be provided are as follows:-
(i) Long distance and local telephone access and telex and telecopier facilities;
(ii) Photocopying and other usual office services.
(11) (a) The FACT may require the party requesting one or more of the services referred to in sub-
rule (6), (7), (8) or (10) to deposit an amount specified by it as advance towards other cost of
such services.
(b) The FACT may also require the parties to make supplementary deposits towards the costs of
the services referred to in clause (a);
(c) If the required deposit under clause (a) or clause (b) is not made in full within the time
specified by the FACT, the FACT may not provide the services requested for.
26. Fees and Expenses

A. Registration Fee
A registration fee of Rs. 15,000/- plus applicable taxes shall be paid along with the application for
reference to conciliation. The registration fee will not be refunded and will become the property of the Council.
B. Administrative Fee
(1) The fee charged by the FACT for appointing the conciliator and for providing administrative service,
other than those specified in sub-rule(6), (7), (8) and (10) of rule 25, is based upon the amount in
dispute, as disclosed when the statement of dispute is submitted to the FACT in pursuance of
sub- rule(a) of rule 5.
(2) Where the FACT is requested to act as appointing authority under rule 4(2), the requesting party
shall pay the FACT a sum of Rs. 4,000/- as a non-refundable fee at the time of the request.
FACT RULES OF
FICCI
CONCILIATION
(As Amended on and With Effect From 08-05-2012)
(3) The Rules of Conciliation provide that the costs of conciliation include the costs of the
administrative and conciliators' fee. The Schedule of fee is given asunder. These costs are to be
borne equally by the parties unless the settlement agreement provides for a different apportionment
[rule 14(4)].
27. Schedule of Fees

The Administrative fee (of FACT) and the Conciliator]s fee (for each conciliator) will be fixed separately
with regard to the amount in dispute including determined interest in each case, as given in the box hereunder:
In addition to the above, the FACT will be entitled to receive a Special Fee of Rs. 5,000/- per hearing for
providing facilities of hearing rooms and secretarial assistance etc. at the conciliation hearings.
Notwithstanding, the provisions in Sub-Rule (1) of this Rule, the Arbitration Committee/Chairman of the
Arbitration Committee may prescribe the Conciliator's fees and the administrative fees of the Council at a
figure higher than those prescribed in the said Sub-Rules, if in the exceptional circumstances of the case this
appears to be necessary.
Other Expenses: The conciliator may be paid an amount of Rs. 1500/- towards local conveyance for
attending each conciliation hearing in the city of his residence. Any travelling and other expenses incurred by
the conciliator or the Registrar for attending the conciliation hearings in a city other than the place of
residence, shall also be reimbursed to him as provided hereinafter. All the above expenses shall form part of
the conciliation costs.
A conciliator who has travel shall be paid travelling expenses by air or rail (air conditioned wherever available)
or car (when neither air nor rail transport is available) at actuals. In addition, he may be paid out-of-pocket at
actuals for boarding, lodging and local transport subject to maximum of Rs. 12,000/- per day in metropolitan
cities and Rs. 8,000/- in all other cities. A conciliator who makes his won arrangements for boarding, lodging,
local transport etc. may be paid out of pocket expenses at the rate of Rs. 6,000/- per day, without production
of vouchers. The limits for stay of the FACT officials will be of those applicable to conciliators.
28. Amendments of Rules

The Governing Body of the FACT may revise, amend or alter these Rules or the Schedule of Fees and other
monies to be charged and paid as and when they think necessary.
FACT RULES OF
FICCI
CONCILIATION
(As Amended on and With Effect From 08-05-2012)
Amount in Dispute Conciliator Fee for

Administrative Fee
each conciliator
Upto Rs. 5 lac Rs.60,000/- Rs.45,000/-
(Rs.5,00,000/-)
From Rs.5 lac one to Rs.25 lac Rs.60,000/- plus Rs.3,000/- Rs.45,000/- plus
(Rs.5,00,001 to 2,500,000) per lac or part thereof Rs.2,250/- per lac or
From Rs.25 lac one to Rs.1 crore subject to a ceiling
Rs.1,20,000/- plus of part
Rs.90,000/- plus
Rs.1,20,000/- thereof subject to a ceiling
of Rs.90,000/-
(Rs.2,500,001 to 10,000,000) Rs.2,400/- per lac or part Rs.1,800/- per lac or part
thereof subject to a ceiling thereof subject to a ceiling of
of Rs.3,00,000/- Rs.2,25,000/-
Rs.4,80,000/- Rs.3,60,000/-
Rs.6,30,000/- Rs.4,72,500/-
Over Rs.10 crores Rs.6,30,000/- plus Rs.4,72,500/- plus
Rs.24,000/- per crore or Rs.18,000/- per crore or part
part thereof, subject to a ceiling thereof, subject to a ceiling of
of Rs. 30 lac Rs.25 lac
FICCI
Federation House, Tansen Marg, New Delhi - 110 001

Ph. : 91-11-23738760-70, 23719103, 23319849, 23319760, Fax : 23320714, 23721504
E-mail : [email protected]/
Website : www.ficci.com

FICCI Rules of Domestic Commercial Arbitration & Conciliation

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FICCI Rules of Domestic Commercial Arbitration & Conciliation

Uploaded by

Copyright:

Available Formats

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

FEDERATION OF INDIAN CHAMBERS OF

(20) Waiver of Rules

(21) Return of Documents

II. RULES OF ARBITRATION (25) Copies of Proceedings

(1) Definitions (26) Cases Withdrawn

(2) Arbitration Committee (27) Indemnity of Secretariat and Arbitrators

(3) Rules Applicable (28) Amendment of Rules

(4) Interpretation of the Rules III. GUIDELINES FOR ARBITRATORS

(15) Notifications and/or Communications (5) Submission of Statement of Conciliator

(19) Fast Track Arbitration

(10) Disclosure of Information (26) Fees and Expenses

(11) Cooperation of parties with Conciliator (27) Schedule of Fees

(12) Suggestions by parties for settlement of dispute (28) Amendments of Rules

(13) Settlement Agreement

(15) Termination of Conciliation Proceedings

(16) Resort to Arbitral or Judicial Proceedings

(19) Role of Conciliator in other proceedings

(20) Admissibility of evidence in other proceedings

(21) Interpretation and application

Part-B Services for Procedure under the

(22) Services for Procedure

(23) Services as the Registry

(24) Services as recommending or

(25) Administrative Services

FACT DOMESTIC COMMERCIAL

FACT CONCILIATION CLAUSE

Note: Parties may have to consider adding the following:

FACT DOMESTIC COMMERCIAL

In these rules, the following words have the following meanings:

(v) "Council" means the FICCI.

(vi) "Governing Body" means the Governing Body of the Council.

(x) "Panel" means the Panel of Arbitrators maintained by the Council.

(xii) "Rules" means the Rules of Arbitration of the Council.

(xiii) "Rules of Conciliation" means the Rules of Conciliation of the Council.

Interpretation of the Rules

Counter-Claim and Reply to Counter-Claim

Copies of Statements, Documents and Replies

The number of arbitrators to hear a dispute shall be determined as under:

(2) Arbitrator's Fee and Administrative Charges

Upto Rs. 5 lac Rs.60,000/- Rs.45,000/-

Over Rs.10 crores Rs.6,30,000/- plus Rs.4,72,500/- plus

Submission of the Case to the Arbitral Tribunal

Notifications and/or Communications from the Registrar

Amendment of Claims, Etc.

Fast Track Arbitration

At a hearing, a party shall be entitled to appear by counsel, attorney, advocate or a duly

(i) the contract or the matter in dispute,

(ii) the arbitration agreement, and

(iii) the arbitration procedure

(g) award interest including pendente lite interest.

(ii) The arbitral tribunal may make an ex parte award :

(a) If a party is in requirement of urgent interim or conservatory measures, that

(b) The party making such an application shall:

(i) An order pursuant to the appointment of Emergency Arbitrator shall be binding

(ii) the award is an arbitral award on agreed terms.

Correction, Interpretation and Remission of Awards

(i) the conduct of all the parties;

For Arbitration Committee

The Code is set out in four parts:

Part I Code of Conduct for the Arbitration Committee.

Part II Code of Conduct for the Arbitrator.