Arbitration-Indian Law—what level of fees can arbitrators charge in a domestic arbitration? (ONGC v Afcons)

Article summary

Arbitration analysis: The Supreme Court of India has attempted to put at rest controversy over the extraordinarily high fees that arbitral tribunals in a typical Indian domestic ad-hoc arbitration (ie, an ad-hoc arbitration between two Indian parties where the seat is in India), are known to charge. The court has upheld the salutary principle of party autonomy through the agreement between the parties and the statutory guidance in the Fourth Schedule to the Arbitration and Conciliation Act 1996 (‘the Act’) (as inserted by the 2015 Amendment to the Act) in this matter, while denuding the arbitral tribunals of any power to unilaterally fix or revise their fee. The court, while making certain directions for the determination of the tribunal’s fees, has advisedly steered clear of making any directions in respect of any international commercial arbitration (ie, an arbitration involving at least one non-Indian party or a non-Indian seat) or an institutional arbitration. Written by Madhur Baya, principal...