Adr MCQ
Adr MCQ
Adr MCQ
3. Which among the following is the main objective of the Arbitration Act, 1996?
a. To comprehensively cover international commercial arbitration
b. To ensure that arbitral tribunal within the limits of court’s jurisdiction
c. To minimize the supervisory role of courts in the arbitral process
d. none of the above
4. The power of court to refer parties for arbitration would and must necessarily include, imply
and inhere in it
a. the power and jurisdiction to advise the parties
b. the power and jurisdiction to review the award
c. the power and jurisdiction to appoint the arbitrator
d. the power and jurisdiction to call for another arbitrator.
5. Part I of the Arbitration and Conciliation Act, 1996 applies where
a. the place of arbitration is in India
b. the place of arbitration is outside India, but is in Asia
c. the place of arbitration is outside India, but is in Europe
d. the place of arbitration is anywhere in the world.
6. An arbitral award made under Part l of the Arbitration and Conciliation Act, 1996 shall be
considered as a
a. domestic award
b. foreign award
c. general award
d. international award.
7. The provisions of 1996 Act have to be interpreted being uninfluenced by principles
underlying under 1940 Act. This observation was laid down in:
a. M.M.T.C. Ltd. v. Sterlite Industries (India) Ltd, AIR 1997 SC 605
b. Sundamm Finace Ltd. v. N.E.P.C. India Ltd., AIR 1999 SC 565.
c. Olympus Super Structures Pvt. Ltd. v. Meemz Vijay Khetan, AIR 1999 SC 2102.
d. Orma Impex Pvt. Ltd. v. Nissuri Arb. Pte. Ltd., AIR 1999 SC 2871.
8. An arbitrator:
a. is chosen and paid by the disputant
b. acts in accordance with privately chosen procedure so far as that is not repugnant to
public policy
c. only (a) is correct
d. both (a) and (b) are correct.
9. An arbitral award:
a. must be connected with the subject-matter of the dispute arbitrated
b. must be founded on principle of trust
c. both (a) and (b) are correct
d. only (a) is correct
10. An arbitral award
a. has to be in writing but need not be signed
b. has to be in writing and signed by the members of the arbitral tribunal
c. may be oral
d. either (a) or (b) or (c).
11. An arbitral award
a. must state the reasons upon which it is based
b. must state the reasons upon which it is based only when the parties have agreed for
the same
c. need not state the reason upon which it is based
d. may state or may not state the reasons upon which it is based as per discretion of the
members of the arbitral tribunal.
12. A sum directed to be paid by an arbitral award shall carry interest
a. @ 6% per annum from the date of the award till the date of payment
b. @ 12% per annum from the date of the award till the date of payment
c. 18% per annum from the date of the award till the date of payment
d. 24 % per annum from the date of the award till the date of payment.
13. Finality to arbitral awards within meaning of section 35 of the Arbitration and Conciliation
Act, 1996 shall
a. not be binding on parties
b. be binding on government authority
c. be binding on first party only
d. be binding on the parties and person claiming under them respectively.
14. Which of the following in the correct statement
a. an arbitral award can be inferred with if it is contrary to the substantive provisions of
the Act or against the terms of the contract
b. an arbitral award can be set aside if the arbitral tribunal has not followed the
mandatory procedure prescribed under the Act
c. an arbitral award can be set aside if it is contrary to fundamental policy of Indian law,
or the interest of India, or justice or morality
d. all of the above.
15. Private arbitration is also described as:
a. integral arbitration
b. consensual arbitration
c. domestic arbitration
d. none of the above.
16. Ad-hoc arbitration can be sought:
a. when the parties involved in commercial transaction choose to incorporate arbitration
clause as a part of agreement to refer their future disputes
b. when a dispute that arose between the parties to a business transaction could not
be settled through mediation or conciliation
c. when the parties agree to submit to arbitration ‘all or any’ differences which have
arisen or may arise
d. only (b) and (c).
17. Statutory arbitration is:
a. imposed on the parties by operation of law
b. a compulsory arbitration
c. where consent of the parties is not necessary
d. all of the above.
18. Court under section 2(1)(e), Arbitration and Conciliation Act means
a. Court of Small Causes
b. Principal Civil Court and Civil Court of an inferior grade
c. Principal Civil Court of original jurisdiction
d. all of the above.
19. A ‘party’ within the meaning of section 2, Arbitration & Conciliation Act, 1996 means
a. party to the contract
b. party to the arbitration agreement
c. party to the suit/ proceedings
d. either (a) or (b) or (c).
20. The definition of ‘Arbitral Tribunal’ under the Arbitration and Conciliation Act, 1996 means
a. sole arbitrator or a panel of arbitrators
b. sole arbitrator only
c. panel of arbitrators only
d. presiding officer.
21. A written statement of the reasons for the challenge to the arbitral tribunal has to be sent
within
a. 15 days of becoming aware of the constitution or the reasons
b. 30 days of becoming aware of the constitution or the reasons
c. 7 days of becoming aware of the constitution or the reasons
d. 60 days of becoming aware of the constitution or the reasons
22. During the arbitral proceedings the arbitral tribunal
a. can make interim award
b. may require a party to provide appropriate security
c. both (a) and (b)
d. either (a) or (b).
23. The arbitral tribunal has the jurisdiction to
a. award interest on the whole or part of the money
b. award interest on the whole of the money Only
c. award interest on part of the money only
d. either (b) or (c).
24. The expression ‘Arbitration agreement’ under section 7 of Arbitration and Conciliation Act,
1996 means
a. any agreement which have arisen under the Arbitration Act of 1940
b. any agreement to submit to arbitration all or certain disputes which have arisen
or which may arise between them in respect of a defined legal relationship,
contractual or not.
c. any agreement to submit to arbitration certain disputes of civil nature
d. any agreement to submit to arbitration certain disputes of criminal nature.
25. Indian ADR system is based on the Common law system
a. False
b. True
a. Yes
b. No
d. Maybe
27. Which of the following are benefits derived from use of ADR methods:
a. Lower Costs
d. All of these
b. Lok Adalat
d. Judicial Settlement
29. In a case relating to arbitration the arbitral award was remitted under section 16 of the
arbitration act 1940. The date of award was 1 June 1992. The arbitration and conciliation act
came into force on 22 August 1996. The validity of the award can be challenged under the
30. The present arbitration and conciliation act of 1996 is based on:
a. Constitution of India
d. UNCITRAL, 1985
b. On the date which the respondent gives consent to the appointment of the arbitrator
d. On the date when the statement of claim and written submission of difference is made
32. To invoke international commercial arbitration it is necessary that at least one of the party is:
c. The rules may provide for domestic or international arbitration or for both.
a. On its own
35. A party shall be precluded from raising the question of jurisdiction of arbitral tribunal
a. Parties themselves
b. State
c. Centre
a. Parties themselves
c. MCD v Pradeep oil Mills Pvt Ltd, AIR 2010 DEL 119
39. Which article of Constitution of India authorises the government to enter into a arbitration
agreement:
a. Article 235
b. Article 299
c. Article 39
d. Both a and C
40. Under section 7, arbitration and conciliation act, 1996, an arbitration agreement
a. Shall be in writing
b. Maybe oral
41. The provision of section 8 arbitration and conciliation act, 1996 are
a. Pre-emptory
b. Directory
c. Discretionary
d. Optional
42. Once an application under section 8, arbitration and conciliation act for referring the parties to
the arbitration is allowed, the proceedings in which the application was made or liable to be
a. Stayed
d. Either a or B.
43. Section 9 of 1996 act deals with:
c. Both a and B
44. While considering the grant of interim measures, the court may see whether:
45. The court has that you restriction to entertain an application for interim measures:
d. Both a and B
a. Arbitration
b. Adjudication
c. Court of enquiry
d. None of the above
117. What is the main objective of arbitration as per the Industrial Disputes
Act?
a. Securing an award
b. Dominance
c. Adjudication
d. Binding of the award on the parties
118. Arbitration is a _____ process, while mediation has a ____ tinge.
a. Quasi - judicial
b. Split the difference
c. Judicial
d. Non – judicial
121. In which of these countries has arbitration been a popular way to resolve
conflicts?
A. USA
B. New Zealand
C. India
D. UK
a. A & B
b. C & D
c. None of the above
d. All of the above
122. The procedure is relatively _____ when compared to that in ordinary
courts or labour tribunals.
a. Expeditious
b. Compromising
c. Binding
d. Delayed
123. State true or false.
a. True
b. False
124. Choose the odd man out.
a. Judgement is often arbitrary and ill - advised as the arbitrators are not well - versed
in the economic and technical aspects of industry.
c. Delay often occurs in arriving at the award and settlement of disputes leading to a
morale breakdown of the employees
a. Voluntary arbitration
b. Voluntary Mediation
c. Compulsory arbitration
d. Compulsory Mediation
126. For Arbitration other than International Commercial Arbitration, the term ‘Court’
means
a. District Court
b. High Court
c. Both a. and b.
d. Neither a. nor b.
127. On a request for appointment of Arbitrator, the High Court shall appoint
Arbitrator for:
a. International Commercial Arbitration
b. Domestic Arbitration
c. Both a. and b.
d. Neither a. nor b
128. On a request for appointment of Arbitrator, the Supreme Court shall appoint
Arbitrator for:
a. International Commercial Arbitration
b. Domestic Arbitration
c. Both a. and b.
d. Neither a. nor b
129. A person or Institution can be designated by SC/HC to appoint arbitrators:
a. True, for both SC/HC
b. False, for both SC/HC
c. True, only for SC
d. True, only for HC
130. Arbitration agreement shall be in form of:
a. Arbitration Clause in a contract
b. Separate document itself
c. Both a. and b.
d. As per Govt defined format only
131. Arbitration agreement can be in:
a. Written form only
b. Oral form only
c. Both a. and b.
d. Even tacit form is permitted
132. Arbitration Agreement shall be in writing if:
a. it’s a document signed by both parties
b. it is contained in letters and other non-electronic communications
c. it is contained in letters and other electronic communications
d. All of these
133. Document 1 consists of an Arbitration Contract. Document 2 merely refers to
using the terms in Document 1. Does reference qualify as an Arbitration Contract?
a. Yes
b. No
134. ‘Arbitration Clause’ and ‘Submission Agreement’ differentiate the Arbitration
Agreement on the basis of:
a. The time when the dispute arises
b. The time taken for the dispute to be settled
c. The mode (physical/electronic) of the agreement
d. The number of pages of the agreement
135. ‘Arbitration Clause’ Arbitration Agreement makes the following disputes
available to Arbitration:
a. Disputes arising after making the Agreement
b. Disputes arisen before making the Agreement
c. Disputes arising in International Commercial Arbitration
d. Disputes arising for values less than 10% of turnover
136. ‘Submission Clause’ Arbitration Agreement makes the following disputes
available to Arbitration:
a. Disputes arising after making the Agreement
b. Disputes arisen before making the Agreement
c. Disputes arising in International Commercial Arbitration
d. Disputes arising for values less than 10% of turnover
137. What shall happen if one of the 2 parties in an Arbitration unilaterally seeks to
proceed to court to litigate the matter:
a. The matter shall be admitted and the arbitration shall cease
b. The matter shall be referred back to arbitration
c. The matter shall be admitted and fine shall be imposed for breach of contract
d. Both proceedings shall proceed simultaneously, Court decision prevails
138. The contract which contained the Arbitration Agreement was invalid. Will the
Arbitration Agreement be invalidated by this mere fact as well:
a. Yes, as it is a part of the agreement to which consent is given
b. No, as it is not part of the agreement , as Arbitration agreement shall be
made and agreed to separately
c. No, as there is ‘Doctrine of Separability’ which allows both Contracts to perform
independently
d. None of the above
139. The question arose before Arbitrator as to the validity of a contract which
contained the Arbitration Agreement. The contract was principal to the Arbitration
Agreement. The ruling on the validity of contract indirectly was a ruling on the
Arbitrator’s own jurisdiction: Is this valid?
a. Yes, as per the Act this is valid
b. No, as generally a judge cannot pass judgement on the validity of his own
appointment
c. No, as the Arbitrator is required to arbitrate only valid contracts under law
d. Yes, but only after obtaining permission of CG
140. Can one of the parties to the Arbitration Agreement themselves be the Arbitrator:
a. Yes, in case of Government Company, it can be a Arbitrator in own case
b. No, since the aspect of neutrality is missing, such Arbitration Agreement is
not covered in Arbitration
c. Yes, provided that Arbitrator is an officer of the Government holding specified
Grade
d. Yes, provided that if the ruling is in it’s own favour, the other party forgoes right
to appeal
141. A Ltd and B Ltd agreed to Arbitration by a retired Judge in their joint venture. In
pursuit of their Joint venture, they dealt in certain Prohibited drugs, and divided the gains
thereof. Later A disputed the division of gains. Can this contract be arbitrated?
a. Yes, as conditions for Arbitration are fulfilled and that is only criteria
b. No, as the subject under Arbitration is strictly to be exercised upon in Court
c. Yes, as the Judge is competent to provide judgement in matters of Criminal
nature
d. No, as the Arbitrator is a retired Judge and as such not qualified
142. Principal Agreement was discharged after the completion of the duties thereunder.
Will the Arbitration Agreement made thereunder continue?
a. Yes, as Doctrine of Separability applies making the Principal Contract and
Arbitration Agreement independent
b. No, as the agreement is completed and as such the arbitration agreement also
terminated with the contract
c. Yes, as Arbitration Agreement is always without a limit on its time/tenure and
valid forever
143. Principal Agreement was terminated due to breach of Contract. Will the
Arbitration Agreement made thereunder continue?
a. Yes, as Doctrine of Separability applies making the Principal Contract and
Arbitration Agreement independent
b. No, as the agreement is completed and as such the arbitration agreement also
terminated with the contract
c. Yes, as Arbitration Agreement is always without a limit on its time/tenure and
valid forever.
144. In case of Death of the parties, the Arbitration Agreement shall:
a. be discharged
b. be enforceable by or against the legal representative
c. be enforceable by the legal representative but not against him
d. be enforceable against the legal representative but not by him
145. Are even number of Arbitrators (i.e. 2,4,6…) on a Arbitral Tribunal permitted:
a. Yes, as per decision upheld in a case
b. No, the Act prohibits even number of Arbitrators
c. Both a. and b.
d. The Act clearly provides that there can be any number of Arbitrators.
146. What is the default appointment procedure u/s 11 in case no procedure is decided
by the parties and the maximum arbitrator shall be 1:
a. Parties appoint jointly one arbitrator
b. Both appoint one each, and the appointees appoint a third
c. Appointment to be made by an unrelated person or institution
d. All of the above
147. What is the default appointment procedure u/s 11 in case no procedure is decided
by the parties and the maximum arbitrator shall be 3:
a. Parties appoint jointly one arbitrator
b. Both appoint one each, and the appointees appoint a third
c. Appointment to be made by an unrelated person or institution
d. All of the above
148. Mr. Brainiac was a minor but highly rated by both the parties to arbitration, and
hence appointed arbitrator. What is the age limit to be appointed as an Arbitrator?
a. A minor cannot be arbitrator as he is unable to contract
b. 45 years to 70 years
c. There is no age limit, or inability imposed on minors
d. Upper limit only of 70 years, no lower limit
149. What is the default appointment procedure u/s 11 in case appointing authority to
which duty to make arbitrator appointment was given, failed to execute:
a. Parties appoint jointly one arbitrator
b. Both appoint one each, and the appointees appoint a third
c. Appointment to be made by an unrelated person or institution, different from the
first person/institution that failed
d. . Approach the SC/HC for appointment based on type of arbitration (i.e.
Domestic/ International)
150. What are the instances in which an Arbitrator may be terminated
a. Voluntary decision to step down
b. Unanimous decision of parties to remove
c. Operation of Law (inability or process ends)/ Termination by Court in case of
bias
d. All of these
151. Course of action on termination of Arbitrator:
a. Appoint new arbitrator under original scheme of appointment
b. Parties to approach SC/ HC based on the type of arbitration
(domestic/international)
c. First a. then b.
d. First b. then a.
152. For termination of Arbitrator, whom should the first challenge be raised against:
a. Arbitrator himself
b. District Court
c. High Court
d. Supreme Court
153. For termination of Arbitrator in case of Domestic Arbitration, whom should the
challenge be raised against (after the Arbitrator):
a. Panchayat/ Municipal Council
b. District Court
c. High Court
d. Supreme Court
154. For termination of Arbitrator in case of International Commercial Arbitration,
whom should the challenge be raised against (after the Arbitrator):
a. Panchayat/Municipal Council
b. District Court
c. High Court
d. Supreme Court
155. Arbitral Award is sought to be challenged by A. Ltd who was a party to the
Arbitration along with B Ltd. In case of a Domestic Arbitration who can the challenge be
made to?
a. Panchayat/Municipal Council
b. District Court/High Court
c. Only High Court
d. Supreme Court
156. Arbitral Award is sought to be challenged by A. Ltd who was a party to the
Arbitration alongwith B Ltd. In case of an International Commercial Arbitration who can
the challenge be made to?
a. Panchayat/Municipal Council
b. District Court/High Court
c. Only High Court
d. Supreme Court
157. What is the Maximum time within which a challenge against the Arbitral Award
can be made:
a. 1 month from the date when Award is received
b. 3 months from the date when Award is received
c. 1 month from the date when Award is received . Maximum extension of further
30 days by Court
d. 3 months from the date when Award is received . Maximum extension of
further 30 days by Court
158. At what time is an Additional Award made:
a. After Settlement Award but before expiry of 30 days thereof
b. After Interim Award but before Final Award
c. After Final Award but before expiry 30 days thereof
d. After Interim Award but before expiry of 30 days thereof
159. What are the types of Interim Award:
a. Interim Award which remains in force till Final Award is made
b. Interim Award which is Final as far as the matters it deals with
c. Both a. and b.
d. Neither a. nor b.
160. What is a Settlement Award?
a. Matter adjudicated by the Arbitrator, but settled at lesser value by parties than
what is decided by arbitrator
b. Parties choose to settle the matters and not involve the Arbitrator to
adjudicate the same. Once settled, if the Arbitrator agrees, it is made into an
award
c. Claims not settled previously in Final Award are put forth to the Arbitral tribunal
within a time frame in order to cover such left out issues
d. None of these
161. What is an Additional Award?
a. Matter adjudicated by the Arbitrator, but settled at lesser value by parties than
what is decided by arbitrator
b. Parties choose to settle the matters and not involve the Arbitrator to adjudicate the
same. Once settled, if the Arbitrator agrees, it is made into an award
c. Claims not settled previously in Final Award are put forth to the Arbitral
tribunal within a time frame in order to cover such left out issues
d. None of these
162. Which of the following is an essential element in voluntary arbitration?
b. Non - compromising
c. It deprives both the parties of their very important and fundamental rights
a. High integrity
b. Knowledge of collective bargaining
c. Understanding of complexities of labour – management relationship
d. All of the above
166. Which are the departments from where a qualified arbitrator be hired?
a. Legal profession
b. Government servants
c. Psychologists
d. All of the above
167. Match the following procedure of investigation with the correct step no.
in the sequence of events.
A. 1 ------- 1. Collecting facts and supporting materials
B. 2 ------- 2. Hearing out to both the parties along with mastery of
the facts of dispute
C. 3 ------- 3. Investigation of the facts and circumstances
a. A-1, B-2, C-3
b. A-2,B-1,C-3
c. A-2,B-3,C-1
168. Choose the correct option that states the principle followed by an
arbitrator.
A. High integrity
B. Fair hearing
C. Natural justice
D. Maintain harmonious labour - management relations
a. A & D
b. B & D
c. B & C
d. A & C
169. With the advocacy of __________ voluntary arbitration came into
prominence for resolving industrial disputes.
a. National Tribunal
b. Court of Enquiry
c. Indian Labour Conference (1962)
d. ILO
172. Which of the following statements is NOT true about ADR?
a. ADR has been used to refer to Another Dispute Resolution.
b. ADR has been used to refer to Affirmative Dispute Resolution.
c. ADR has been used to refer to Alternative Dispute Resolution.
d. ADR has been used to refer to Appropriate Dispute Resolution.
173. Which of the following statements is most accurate regarding
arbitration?
a. Arbitration helps parties understand each other’s perspectives.
b. Arbitration is binding, requiring a commitment in advance to
accept an outcome.
c. Arbitration allows parties to express their feelings.
d. Arbitration helps parties recognize their underlying interests.
174. The process of arbitration may be classified as --
a. Consensual.
b. Facilitative.
c. Both A and B.
d. Neither A nor B.
175. Which of the following statements is most accurate regarding the
main aim of ADR?
a. To reduce the need for the parties to go to court at all
b. To delay the process before the parties can go to court
c. To speed up the process before the parties can go to court
d. To guarantee a full court hearing
176. If an agreement contains an arbitration clause that is not null and
void, inoperative or incapable of being acted on, then-
a. The parties can never go to court
b. The parties can only go to court after they have been to arbitration
c. Either of the parties can choose to go to court
d. If both parties agree, they can choose to go to court
177. In which year did the government appoint National Arbitration
Promotion Board along with a tripartite composition to make voluntary
arbitration more acceptable?
a. July 1965
b. July 1968
c. July 1966
d. July 1967
178. Which of the following option is a factor which has contributed to the
slow progress of arbitration?
a. Alexander Frey
b. V.V. Giri
c. Mahatma Gandhi
d. American Labour Movement
180. State true or false.
a. True
b. False
181. Which is the ultimate legal remedy for the settlement of an unresolved
dispute?
a. Court of enquiry
b. Adjudication
c. Arbitration
d. National Tribunal
182. Who is the deciding authority to put the resolving matter into
adjudication?
a. Disputing parties
b. Conciliator
c. Trade Union
d. Government
183. . __________ involves intervention in the dispute by a third party
appointed by the government for the purpose of deciding the nature of final
settlement.
a. Adjudication
b. National Tribunal
c. Arbitration
d. None of the above
184. The importance of adjudication has been emphasised by the ________.
a. Government
b. Civil Court
c. Supreme Court
d. None of the above
185. The adjudication machinery has to consider not only the demands of
_______ justice but also the claims of national economy.
a. Economic
b. Social
c. Freedom of contract
d. None of the above