Arbitration and Conciliation Act, 1996

Multiple choice questions of Subject Judiciary Topic Arbitration and Conciliation Act, 1996 ( Arbitration and Conciliation Act, 1996 with Answers Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

Arbitration and Conciliation act 2021,1996 MCQs | Question Answer

1. Where the parties have not determined the number of arbitrators, the arbitral tribunal shall consist of

(a) a sole arbitrator

(b) 2 or more arbitrators

(c) More than one arbitrator

(d) All of the above

Ans. a

2. The parties are free to determine the number of arbitrators

(a) that number shall not be an even number

(b) that number shall be an even number:

(c) either (a) or (b)

(d) none of the above

Ans. a

3. We there are 3 arbitrators, ‘third arbitrator’ shall act as

(a) Presiding arbitrator

(b) Sole arbitrator

(c) An umpire

(d) none of the above

Ans. a

4. parties to the arbitration agreement has to appoint an arbitrator within a

(a) 60 days

(b) 30 days

(c) 40 days

(d) 90 days

Ans. b

5. Chief Justice or any person or institution designated by him may appoint an arbitrator

(a) if a party fails to appoint an arbitrator within 30 days

(b) the two appointed arbitrators fail to agree on the third arbitrator within 30 days.

(c) both (a) & (b)

(d) none of the above

Ans. c

6. Under Section 11, Arbitration and Conciliation Act, 1996, a person for being an arbitrator

(a) must be an Indian National

(b) must be an Indian citizen

(c) may be a person of any nationality

(d) may be a person of any nationality, except an alien enemy.

Ans. c

7. In case of appointment of sole or third arbitrator in an international commercial arbitration, a person

(a) who is of the nationality of the claimant may be appointed as arbitrator

(b) who is of the nationality of the disputant may be appointed as an arbitrator

(c) who is of any nationality irrespective of the nationalities of the parties be appointed as an arbitrator

(d) who is of a nationality other than the nationalities of the parties appointed as an arbitrator

Ans. d

8. Where more than one request has been made to the Chief Justice o High Court, request made shall be final

(a) first made to the chief justice

(b) second made to the chief justice

(c) third made to the chief justice

(d) none of the above

Ans. a

9. Appointment of Arbitrator by the chief justice is

(a) a judicial order

(b) an administrative order

(c) an interim order

(d) none of the above

Ans. b

10. The appointment of Arbitrator can be challenged on the ground

(a) he is not independent or impartial

(b) he is a foreign national

(c) he is not qualified

(d) both (a) & (c)

Ans. d

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11. Under Section 13 of the Arbitration and Conciliation Act, the challenge  can be made to

(a) procedure for arbitrator

(b) grounds for challenge

(c) appointment to the arbitrator

(d) none of the above

Ans. a

12. In conciliation proceedings the parties willing to conciliate has to sign

(a) a written invitation to conciliate

(b) an oral request

(c) an oral and written request

(d) none of the above

Ans. a

13. Conciliation proceeding commences

(a) when the other party accepts in writing invitation to conciliate

(b) when the other party accept

(c) where the other party neither accept nor request

(d) none of the above

Ans. a

14. A party who has sound invitation to reconciliate may elect to treat the invitation as rejection if

(a) he does not receive a reply within 30 days

(b) he receives the reply within 40 days. _

(c) both (a) & (b)

(d) none of the above

Ans. a

15. The settlement arrived in a conciliation proceedings have the status of

(a) an arbitral award made by an arbitral tribunal

(b) ordinary award

(c) award made by the administrative tribunal

(d) none of the above

Ans. a

16. The conciliation proceedings stands terminated

(a) by signing of the settlement agreement by the parties on the date of agreement.

(b) by written declaration of the conciliator, after conciliation with parties to terminate the conciliation proceedings on the date of the declaration

(c) by written declaration by the parties addressed to the conciliator to the effect that conciliation proceedings are terminated on the date of declaration

(d) all of the above

Ans. d

17. Section 81 of the Act relates to the proceeding for

(a) admissibility of evidence in other proceeding

(b) role of the conciliator in other proceeding

(c) power of the High Court in conciliation proceeding

(d) none of the above

Ans. a

18. The evidence which is inadmissible under section 81 is

(a) admissions made by other party in the course of the conciliation proceeding

(b) proposals made by the conciliator

(c) views expressed by the conciliator in the course of conciliation proceedings

(d) all of the above

Ans. d

19. The number of conciliators may be

(a) Upto 1

(b) Upto 2

(c) Upto 3

(d) Upto 4

Ans. c

20. Where there are more than one conciliator, they have to act

(a) Jointly

(b) Individually

(c) Independently

(d) none of the above

Ans. a

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21. Under Section 2 of the Arbitration and Conciliation Act, 1996 `Arbi Award’

(a) includes an interim award

(b) does not include an interim award

(c) is a final award

(d) none of the above

Ans. a

22. Under Section 2 of the Arbitration and Conciliation Act, 1996, Arb Tribunal means

(a) a sole arbitrator

(b) panel of arbitrators

(c) both (a) & (b)

(d) none of the above

Ans. c

23. The Arbitral proceeding shall be terminated

(a) by the final arbitral award

(b) (i) or by an order of the arbitral tribunal if the claimant withdraw his (ii) if the parties agree of the termination of the proceeding (iii) a tribunal finds that the continuation of the proceedings has for any reason become unnecessary or impossible.

(c) both (a) & (b)

(d) none of the above

Ans. c

24. A party can seek correction and interpretation of an award

(a) within 30 days from the receipt of the arbitral award

(b) upon pronouncement of the arbitral award

(c) upon publication of the arbitral award

(d) none of the above

Ans. a

25. The Arbitral Tribunal can made correction of its own within

(a) 30 days from the date of the arbitral award

(b) 90 days from the publication of the award

(c) 30 days from the receipt of the award

(d) none of the above

Ans. a

26. A party with notice to other party can seek additional award

(a) within 30 days from publication of the award

(b) within 60 days from pronouncement of award

(c) within 30 days from receipt of arbitral award

(d) none of the above

Ans. a

27. The Arbitral Tribunal can make additional award if it considers the justified

(a) within 30 days from receipt of such request

(b) within 30 days from receipt of award

(c) within 60 days from the date of receipt of such award

(d) none of the above

Ans. c

28. Choose the correct answer

(a) The Arbitral Tribunal has the power to extend the period of time within which it shall make a correction, give an interpretation or make an additional award

(b) An arbitral tribunal has no power to extend the period of time within which it shall make a correction, give an interpretation or make an additional award

(c) both (a) & (b)

(d) None of the above

Ans. a

29 Under the Arbitration and Conciliation Act, 1996, an application for setting side, arbitral tribunal award can be made

(a) within 3 months when the party receive the arbitral awar(d)

(b) if a request for correction, interpretation or additional award has been made, from the date of such request had been disposed of by the arbitral tribunal

(c) both (a) & (b)  

(d) none of the above

Ans.  c

30. The court is empowered to entertain the application if the same was not =3de within 3 months as the applicant was prevented of sufficient cause within the period of

(a) further period of 30 days

(b) further period of one month only

(c) within a period of 90 days

(d) None of the above

Ans. a

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31. An arbitral award under the Arbitration and Conciliation Act, 1996 is a

(a) decree by the court

(b) not a decree

(c) is an award of a tribunal

(d) none of the above

Ans. a

32. An arbitral award under the Arbitration and Conciliation Act, 1996 is a

(a) decree of the court

(b) not a decree

(c) is an award of a lower court

(d) none of the above

Ans. d

33. Choose the correct answer

(a) in conciliation proceedings with one conciliator, the parties may agree for sole conciliator

(b) in conciliation proceedings with two conciliators each party may appoint one conciliator

(c) in conciliation proceeding with three conciliators each party may appoint one conciliator and parties may agree on the name of the third conciliators.

(d) (a), (b), (c)

Ans. d

34. Where there are three conciliators they shall act as

(a) presiding conciliator

(b) sole conciliator

(c) an umpire

(d) none of the above

Ans. a

35. The Arbitration awards made before commencement of the Arbitr and Conciliation Act, 1996

(a) are to be challenged under the Arbitration Act, 1940 only.

(b) are to be challenged under the Arbitration Act, 1996.

(c) cannot be challenged under 1940 Act as it stands repealed

(d) are to be challenged under the provisions of the Arbitration as per 1940 only unless otherwise agreed by the parties.

Ans. d

36. The Arbitration proceeding commenced on or after commencemei Arbitration and Conciliation Act, 1996

(a) shall be governed under 1996 Act

(b) under Arbitration Act, 1940

(c) under 1940 Act if agreed between the parties.

(d) under 1996 Act as well as under 1940

Ans. a

37. The Arbitration and Conciliation Act, 1996 was enacted taking consideration:

(a) International Chamber of Commerce Rules

(b) Model law and conciliation rules adopted by the United National Commi on International trade Law (UNCITRAL)

(c) LCIA India Arbitration Rules

(d) Indian Arbitration Act, 1940

Ans. b

38. As per Section 3(2) of the Arbitration and Conciliation Act, 19! communication is deemed to have been received on the day when

(a) It is dispatched to the addressee

(b) It is delivered to the addressee

(c) Written acknowledgement of the receipt is sent to the sender

(d) Written acknowledgement of the receipt is received by the sender

Ans. b

39. “International Commercial Arbitration” means an arbitration relating disputes, where at least one of the parties is:

(A) an individual who is a national of or habitually resident in any country than India

(B) a body corporate which is incorporated in any country other than

(C) an association or a body of individuals whose central management control is exercised in any country other than India

(D) a Government of a foreign country

(a) (A) and (B) and not (C) and (D)

(b) (A), (B) and (C) and not (D)

(c) All the four above

(d) None of these

Ans. c

40. Which of the statements is not in accordance with the provisions of the arbitration and Conciliation Act, 1996?

(a) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal

(b) In the absence of an agreement between the parties, the arbitral award shall state the reasons upon which it is based

(c) After the arbitral award is made, a signed copy shall be delivered to each party

(d) The arbitral tribunal shall not, during the arbitral proceedings, make an interim award

Ans. d

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41. An international Commercial Arbitration” is an arbitration where at least one of the parties is:

(a) A body corporate incorporated in any country other than India

(b) A body of individuals whose central management and control is exercised in any country other than India

(c) The government of a foreign country

(d) All of these

Ans. d

42. Which of the following disputes can be adjudicated upon through arbitration?

(a) Arising out of legal relations

(b) Arising out of contractual relations

(c) Arising out of commercial relations

(d) All of the above

Ans. d

43. Which of the following is not an essential condition for an arbitration agreement as per Section 7 of the Arbitration and Conciliation Act, 1996?

(a) The agreement must be registered

(b) The agreement must be to submit to arbitration all or certain disputes which have arisen or which may arise in respect of a defined legal relationship whether contractual or not

(c) The arbitration agreement must be in writing a

(d) None of these

Ans. a

44. The “arbitral Award” as defined in the Arbitration and Conciliation Act, 1996 includes:

(a) a Final award

(b) Interim award

(c) Both final and interim award

(d) None of these

Ans. b

45. Interim measure by a court under Arbitration and Conciliation Act, 1996, includes

(a) Appointment of receiver

(b) Securing the amount in dispute in arbitration

(c) The preservation, interim custody or sale of goods which are subject matter of arbitration agreement

(d) All of the above 

Ans. d

46. Under the Arbitration and Conciliation Act, 1996, the mandate of Arbitrator Tribunal terminates:

(a) When the arbitrator withdraws from his office

(b) The parties agree to terminate his mandate

(c) Incompetency of arbitrator

(d) All of the above

Ans. d

47. An application under Section 11 of the Arbitration and Conciliation 1996 can be filed:

(a) Only in the High Court

(b) In the court of appropriate pecuniary jurisdiction dependent upon subject matter of the dispute i.e. either before the Civil Judge or the Dis Judge or High Court

(c) In the court of appropriate pecuniary jurisdiction dependent upon subject matter of the dispute i.e. either before the Civil Judge or the Dis Judge or the High Court only if the Chief Justice has delegated his po under Section 11 to the Civil Judges and the District Judges

(d) Either in the Supreme Court or in the High Court

Ans. d

48. In an arbitration between two parties before an arbitrator appointed the Chief Justice of the High Court (in exercise of powers under Sec 11 of the Arbitration and Conciliation Act, 1996), the rival parties filed claims against each other. When the arbitration was at an advantage stage, the parties are of the opinion that the arbitrator is, likely to re’ the claims/counter claims of both the parties. The parties jointly info the arbitrator that they are not willing for arbitration before him and appearing before him. The parties thereafter:

(a) Are entitled to appoint another arbitrator and to start arbitration proceeding de novo

(b) Are not entitled to a second round, the same being in contravention of p policy prohibiting forum shopping

(c) Are entitled to appoint another arbitrator but the discretion whether commence the arbitration proceedings de novo or from the stage u left by the earlier arbitrator is of the Arbitrator and not of the p

(d) Cannot themselves appoint the second arbitrator and are required to approach the Chief Justice for appointment of another arbitrator

Ans. a

49. A party seeking appointment of an Arbitrator through the High court or its designate shall make a request under:

(a) Section 11(3) of the Arbitration and Conciliation Act, 1996

(b) Section 11(2) of the Arbitration and Conciliation Act, 1996

(c) Section 11(6) of the Arbitration and Conciliation Act, 1996

(d) Section 10 of the Arbitration and Conciliation Act, 1996

Ans. c

50. The arbitration awards rendered in arbitration proceedings commended before the coming into force of the Arbitration and Conciliation Act, 1996:

(a) Are to be challenged as per the provisions of the Arbitration Act, 1940 Act only

(b) Are to be challenged as per the provisions of the 1996 Act

(c) Are to be challenged as per the provisions of the Arbitration Act, 1940 only unless otherwise agreed by the parties

(d) Cannot be challenged since the 1940 Act stands repealed on coming into force of the 1996 Act

Ans. d

51. The arbitral tribunal:

(a) Shall not be bound by the Code of Civil Procedure or the Indian Evidence Act

(b) Shall follow the Code of Civil Procedure

(c) Shall follow the Indian Evidence Act

(d) Shall follow the arbitrary procedure

Ans. a

52. In the absence of an agreement between the parties, the arbitration proceedings are said to have commenced on:

(a) The date on which the first party dispatches a notice of request to the second party for referring the dispute to arbitration

(b) the date on which a request to refer the dispute to arbitration is received the second party

(c) When one of the parties submit the claim petition before the arbitrator

(d) None of these

Ans. b

53. ln which case the Supreme Court held that power to grant interim measure under Section 9 of the Arbitration and Conciliation Act, 1996 n—1-nds to International arbitration as well:

(a) Bhatia International v. Bulk Trading S.A., (2002) 4 SCC 105

(b) Oil & Natural Gas Corpn. Ltd. vs. Saw Pipes Ltd., (2003) 5 SCC 705

(c) Konkan Rly. Corn., Ltd. v. Rani Construction (P) Ltd. (2000) 8 SCC 159 

(d) Sundraram Finance Ltd. v. NEPC India Ltd., (1999) 2 SCC 479

Ans. a

54. After the arbitral award is made, each party shall be delivered:

(a) The original award

(b) A signed copy of the award

(c) A photocopy of the award

(d) An unsigned copy of the award

Ans. b

55. Which Section of the 1996 Arbitration Act permits the parties to engage conciliation process even while the arbitral proceedings are on?

(a) Section 30

(b) Section 10

(c) Section 40

(d) Section 20

Ans. a

56. An application for setting aside the Arbitral Award is filed under:

(a) Section 32 of the Arbitration and Conciliation Act, 1996

(b) Section 33 of the Arbitration and Conciliation Act, 1996

(c) Section 34 of the Arbitration and Conciliation Act, 1996

(d) Section 37 of the Arbitration and Conciliation Act, 1996

Ans. c

57. Which of the following is not a ground for setting aside an arbitration award under Section 34 of the Arbitration and Conciliation Act, 19

(a) Incapacity of a party

(b) Arbitration agreement not being valid under the law in force

(c) Award contains decisions on matters beyond the scope of the submiss to arbitration

(d) None of these

Ans. d

58. An arbitration award under the Arbitration and Conciliation Act,

(a) Has the status of a decree immediately on publication/pronoun thereof

(b) Does not have the status of a decree

(c) Has the status of a decree only after the time of three months form an application to set aside the same has expired or such application has been made has been refused

(d) Has the status of a decree only after time of three months and a period of 30 days for making an application to set aside the same expired or such application having been made has been refused

Ans. c

59. In which case the Supreme Court held that under Section 34 of Arbitration and Conciliation Act, 1996 the court can examine the v of International awards:

(a) Oil and Natural Gas Corpn. Ltd. vs. Saw Pipes Ltd., (2003) 5 SC

(b) Venture Giobnal Engg. vs. Satyam Computer Services Ltd., (2008) 190

(c) Kailash Rani Dang vs. Rakesh Bala Aneja, (2009) 1 SCC 732

(d) Union of India v. Tecco Trichy Engineers & Contractors, (2005) 239

Ans. a

60. An Arbitral award may be set aside by the court if:

(a) It is in conflict with the public policy of India

(b) A party was under some incapacity

(c) It is passed on a local incapacity

(d) Both (a) and (b)

Ans. d

61. An arbitration award is enforceable as a decree if not challenged

(a) True

(b) False

Ans. a

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