Arbitration Rules of the

Society for Affordable Redressal of Disputes (SAROD)

(SAROD ARBITRATION RULES)

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 ARBITRATION RULES OF SAROD

INDEX
Rule
1. Scope of Application
2. Definitions
3. Notice, Calculation of Periods of Time
4. Commencement of Arbitration
5. Response by Respondent
6. Filing of Case Statements
7. Contents of Case Statements
8. Default in Filing and Serving Case Statements
9. Further Written Statements
10. SAROD to Provide Assistance
11. Appointment of Tribunal
12. Multi-party Appointment of the Tribunal
13. Appointment of Substitute Arbitrator
14. Independence and Impartiality of the Tribunal
15. Code of Ethics for Arbitrators
16. Challenge of Arbitrators
17. Decision on Challenge
18. Removal of the Tribunal
19. Re-hearing in the Event of Replacement of the Tribunal
20. Jurisdiction of the Tribunal
21. Fees of SAROD and Arbitral Tribunal
22. Transmission of File of the Tribunal
23. Juridical Seat of Arbitration
24. Language of Arbitration
25. Conduct of the Proceeding
26. Communications between Parties and the Tribunal
27. Party Representatives
28. Hearings
29. Documents – Only Arbitration
30. Witnesses
31. Experts Appointed by the Tribunal
32. Rules applicable to substance of dispute
33. Closure of Hearings
34. Additional Powers of the Tribunal
35. Deposits to Costs and Expenses
36. Decision Making by the Tribunal
37. The Award
38. Additional Award
39. Correction of Awards
40. Settlement
41. Interest
42. Costs
43. Waiver
44. Exclusion of Liability
45. General Provisions
46. Amendment to Rules

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 PREAMBLE

In order to seek speedy, affordable, just and reasonable Redressal of Dispute/Differences between NHAI and
Concessionaire/Contractor arising out of and during the course of execution of various contracts, a Society for
Affordable Redressal of Disputes (SAROD) has been formed as a Society under Societies Registration Act, 1860
with registration No. S/RS/SW/1044/2013. It has been formed by National Highways Authority of India (NHAI)
and National Highways Builders Federation (NHBF) with founding members as mentioned in the Memorandum
of Association of SAROD.

SAROD ARBITRATION RULES

Rule 1 – Scope of Application

1.1 Where any agreement, submission or reference provides for arbitration at the Society for Affordable
Redressal of Disputes (“SAROD”), or under the Arbitration Rules of the SAROD and where the case is
a domestic arbitration, it shall be conducted in accordance with the following Rules, or such Rules as
amended by the SAROD where the amendments take effect before the commencement of the
Arbitration. Parties may adopt following clause for inclusion in the contract:-

“Any dispute or difference whatsoever arising between the parties and of or relating to the construction,
interpretation, application, 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 arbitration of the “SAROD”
and the award made in pursuance thereof shall be final and binding on the parties subject to Provisions
of The Arbitration and Conciliation Act, 1996”.

1.2 These rules shall come into effect from the day of approval by Governing Body of SAROD.

Rule 2 – Definitions

2.1 These Rules shall be referred to as “the SAROD Arbitration Rules”.

2.2 In these Rules:

“Act” means the ‘Arbitration and Conciliation Act 1996’ of India and any statutory modifications or re-
enactments thereof.

“SAROD” means the Society for Affordable Redressal of Disputes.

“SAROD Arbitrator Panel” means the list of persons admitted to serve as arbitrators under these Rules.

“NHAI” means National Highways Authority of India.

“NHBF” means the National Highways Builders Federation.

“GOVERNING BODY” means Governing Body of SAROD as defined in Article 9 of Memorandum

of Association.
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 “PRESIDENT” means President of Governing Body of SAROD as defined in Rules & Regulation of
SAROD.

“SECRETARY” means Secretary of SAROD as defined in Rules & Regulation of SAROD.

“TRIBUNAL” means either a Sole Arbitrator or all arbitrators when more than one is appointed.

“PARTY” or “PARTIES” means a party or parties to an arbitration agreement as the case may be.

“E-Arbitration” means submission of pleadings, defence statement etc. by E-mail and holding of
proceedings via video conferencing.

Rule 3 – Notice, Calculation of periods of Time

3.1 For the purposes of these Rules, any notice, including a notification, communication or proposal, is
deemed to have been received if it is physically delivered to the addressee or if it is delivered at his
habitual residence, place of business or mailing address, or, if none of these can be found after making
reasonable inquiry, then at the addressee’s last-known residence or place of business. Notice shall be
deemed to have been received on the day it is so delivered.

3.2 For the purposes of calculating a period of time under these Rules, such period shall begin to run on the
day following the day when a notice, notification, communication or proposal is received. If the last day
of such period is an official holiday or a non-business day at the residence or place of business of the
addressee, the period is extended until the first business day which follows. Gazetted public holidays or
non-business days occurring during the running of the period of time are included in calculating the
period.

3.3 Without prejudice to the effectiveness of any other form of written communication, written
communication may be made by fax, email or any other means of electronic transmission effected to a
number, address or site of a party.

3.4 The transmission is deemed to have been received on the day of transmission.

Rule 4 – Commencement of Arbitration

4.1 Any Party wishing to commence an arbitration under these Rules (“the Claimant”) shall file with the
Secretary and serve on the other Party (“the Respondent”), a written Notice of Arbitration (“the Notice
of Arbitration”) which shall include the following:

a. a request that the dispute be referred to arbitration;

b. the names, addresses, telephone numbers, fax numbers and email addresses of the Parties to the
dispute;
c. a reference to the arbitration clause or any separate arbitration agreement that is invoked and
provide a copy of the arbitration clause or arbitration agreement;

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 d. a reference to the contract out of which the dispute arises and provide a copy of the contract
where possible;

e. a brief statement describing the nature and circumstances of the dispute;

f. the relief or remedy sought, including the amount of claim if quantifiable at the time the Notice
or Arbitration is filed;

g. a proposal as to the number of arbitrators (i.e. one or three), if the parties have not previously
agreed on the number; and

h. the name of the Claimant’s nominated arbitrator.

4.2 The date of filing of the Notice of Arbitration with the Secretary is the date of commencement of the
arbitration for the purpose of these Rules.

4.3 A filing fee of ₹ 25,000/- (Twenty Five Thousand) (plus 18% GST) or any amount decided by Governing
Body from time to time is payable at the time of filing the Notice of arbitration.

4.4 Primary Membership of SAROD shall be a pre-requisite for invoking arbitration under these Rules.

Rule 5 – Response by Respondent

5.1 Within 14 days of receipt of the Notice of Arbitration, the Respondent shall file with the Secretary and
serve upon on the Claimant, a Response including

a. A confirmation or denial of all or part of the claims;

b. Brief statement of the nature and circumstances of any envisaged counterclaims;

c. A comment in response to any proposals contained in the Notice of Arbitration; and

d. The name of the respondent’s nominated arbitrator.

5.2 A filing fee of ₹ 25,000/- (plus 18% GST) or any amount decided by Governing Body from time to time
is payable at the time of filing the Response.

5.3 In case any party has objection to the jurisdiction of Arbitral Tribunal, such objection shall be raised not
later than 15 days of the commencement of Arbitration proceedings failing which it will be deemed that
party has waived the right to object.

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Rule 6 – Filing of Case Statements

6.1 Within 30 days after the filing of the Notice of Arbitration, the claimant must file with the Secretary and
serve on the Respondent, a Statement of Claimant’s Case alongwith all documents to be relied upon by
the Claimant.

6.2 Within 30 days after the service of the statement of Claimant’s Case, the Respondent must file with the
Secretary and serve on the Claimant, a statement of respondent’s defence and counterclaim (if any)
alongwith all documents to be relied upon by the Respondent.

6.3 Within 30 days after the service of the statement of Respondent’s defence, if the Claimant intends to
challenge anything in the statement of Respondent’s defence and/or counterclaim, the Claimant must
then file with the Secretary and serve on the Respondent, a statement of claimant’s reply and if
necessary, defence to counterclaim.

6.4 No further case statements may be filed without the leave of the Tribunal or if a Tribunal has not been
appointed, the Secretary.

6.5 The Tribunal or if a Tribunal has not been appointed, the Secretary, may upon the written application of
a party, extend the time limits provided under this Rule,

6.6 Thy party required to file a case statement must at the same time deposit with the Secretary for eventual
transmission to the Tribunal an additional copy or additional copies of the case statement, according to
the number of arbitrators constituting or who will constitute the Tribunal.

Rule 7 – Contents of Case Statements

7.1 The case statements must contain the detailed particulars of the Party’s claim, defence or counterclaim
and must thus contain a comprehensive statement of the facts and contentions of law supporting the
Party’s position.

7.2 It must:

a. Set out all items of relief or other remedies sought together with the amount of all quantifiable
claims and detailed calculations.

b. State fully its reasons for denying any allegation or statement of the other Party.

c. State fully its own version of events if a Party intends to put forward a version of events different
from that given by the other party.

7.3 A case statement must be signed by or on behalf of the Party making it.

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Rule 8 – Default in Filing and Serving Case Statements

8.1 If the Claimant fails within the time specified under these Rules or as extended by the Tribunal or by
the Secretary, to submit its Statement of Case, the Tribunal or if a Tribunal has not been appointed, the
Governing Body may issue an order for the termination of the arbitral proceedings or make such other
directions as may be appropriate in the circumstances.

8.2 If the Respondent fails to submit a Statement of Respondent’s Defence, the Tribunal may nevertheless
proceed with the arbitration and make the award.

Rule 9 - Further Written Statements

9.1 The Tribunal will decide which further written statements, in addition to the case statement(s) already
filed, are required from the Parties and shall fix the periods of time for giving, filing and serving such
statements.

9.2 All such further statements must be given to the Tribunal, filed with the Secretary and served on the
Claimant or Respondent, whichever is applicable.

Rule 10 – SAROD to Provide Assistance

10.1 At the request of the Tribunal or either party, the Secretary will render such assistance as is required for
the conduct of the arbitration, including arranging for facilities, suitable accommodation for sittings of
the Tribunal, secretarial assistance or interpretation of these rules.

10.2 Any additional expenses incurred or to be incurred for any such arrangements shall be borne by the
parties.

Rule 11 – Appointment of Tribunal

11.1 The disputes shall be decided by a Sole Arbitrator when the total claim of dispute is of ₹ 3,00,00,000/-
(Rs. Three Crores) or less.

11.2 In all cases of disputes claimed for more than ₹ 3,00,00,000/- (₹ Three Crores), the tribunal shall consist
of odd number of Arbitrators to be nominated by the Parties. The Presiding Arbitrator shall be appointed
by the Arbitrators nominated by the Parties from amongst the panel maintained by SAROD. For deciding
the Presiding Arbitrator, a draw of lots can be carried out from amongst the names suggested by the
Arbitrators nominated by the Parties. The eligibility criteria for empanelment of Arbitrators will be
decided by the Governing Body.

11.3 If a Sole Arbitrator is to be appointed, the Governing Body will appoint the Arbitrator within 21 days
from the date the Respondent’s Statement of Defence and Counterclaim (if any) is filed or falls due,
whichever is earlier. The Governing Body will appoint the Arbitrator from the panel of Arbitrators by
draw of lots.

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11.4 An Arbitrator/Presiding Arbitrator to be appointed under these Rules shall be a person on the SAROD
Arbitration Panel as on the date of the appointment.

11.5 In the event of any Party failing to appoint Arbitrator within 30 days of receipt of the notice of
Arbitration, the Governing Body shall appoint the Arbitrator or Presiding Arbitrator as the case may be
by a draw of lots.

11.6 No arbitrator will have more than 03 cases simultaneously.

Rule 12 – Multiparty appointment of the Tribunal

12.1 If there are more than 2 parties in the arbitration, the Parties shall agree on the procedure for appointing
the Tribunal within 21 days of the receipt of the Notice of Arbitration.

12.2 If the Parties are unable to do so, upon the lapse of the 21 days time period mentioned herein, the
Tribunal shall be appointed by the Governing Body as soon as practicable.

Rule 13 – Appointment of Substitute Arbitrator

In the event of the death or resignation of any of the arbitrators, a substitute arbitrator must be appointed by the
same procedure as in Rule 11 by which the arbitrator concerned was appointed, failing which, the Governing
Body will make the appointment.

Rule 14 - Independence and Impartiality of the Tribunal

14.1 The Tribunal conducting arbitration under these Rules shall be and remain at all times independent and
impartial, and shall not act as advocate for any Party.

14.2 A prospective arbitrator shall disclose to those who approach him in connection with his possible
appointment, any circumstances likely to give rise to justifiable doubts as to his impartiality or
independence.

14.3 An arbitrator, once nominated or appointed, shall disclose any such circumstance referred to in Rule
14.2 to the Secretary and/ or to all Parties.

Rule 15 – Code of Ethics for Arbitrators

An Arbitrator is a fountain of justice and emblem of equity, fairness and good conscience. Therefore he/she is
expected to exhibit a noble conduct. The code of conduct prescribed by the Governing Body has to be adopted.

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Appointment

15.1 A prospective arbitrator shall accept an appointment only if he is fully satisfied that he is able to
discharge his duties without bias, he has an adequate knowledge of the language of the arbitration, and
he is able to give to the arbitration the time and attention which the parties are reasonably entitled to
expect.

15.2 In this code, the masculine includes the feminine.

Disclosure

15.3 A prospective arbitrator shall disclose all facts or circumstances that may give rise to justifiable doubts
as to his impartiality or independence, such duty to continue thorough out the arbitral proceedings with
regard to new facts and circumstances.

15.4 A prospective arbitrator shall disclose to the Secretary and any party who approaches him for a possible
appointment:

a. Any past or present close personal relationship or business relationship, whether direct or
indirect, with any party to the dispute, or any representative of a party, or any person known to
be a potentially important witness in the arbitration;
b. The extent of any prior knowledge he may have of the dispute.

Bias

15.5 The criteria for assessing questions relating to bias are impartiality and independence. Partiality arises
when an arbitrator favours one of the parties or where he is prejudiced in relation to the subject matter
of the dispute. Dependence arises from relationships between an arbitrator and one of the parties, or with
someone closely connected with one of the parties.

15.6 Any close personal relationship or current direct or indirect business relationship between an arbitrator
and a party, or any representative of a party, or with a person who is known to be a potentially important
witness, will normally give rise to justifiable doubts as to a prospective arbitrator’s impartiality or
independence. Past business relationships will only give rise to justifiable doubts if they are of such
magnitude or nature as to be likely to affect a prospective arbitrator’s judgment. He should decline to
accept an appointment in such circumstances unless the parties agree in writing that he may proceed.

Communications

15.7 Before accepting an appointment, an arbitrator may only enquire as to the general nature of the dispute,
the names of the Parties and the expected time period required for the arbitration.

15.8 No arbitrator shall confer with any of the Parties or their Counsel until after the Secretary gives notice
of the formation of the Tribunal to the parties.

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15.9 Throughout the arbitral proceedings, an arbitrator shall avoid any unilateral communications regarding
the case with any Party, or its representatives.

Fees

15.10 In accepting an appointment, an arbitrator agrees to the remuneration as prescribed in the rules of
SAROD, and he shall make no unilateral arrangements with any of the Parties or their Counsel for any
additional fees or expenses without the agreement of all the Parties and the consent of the Secretary of
SAROD.

Conduct

15.11 Once the arbitration proceedings commence, the arbitrator shall acquaint himself with all the facts and
arguments presented and all discussions relative to the proceedings so that he may properly understand
the dispute.

Confidentiality

15.12 The arbitration proceedings shall remain confidential. An arbitrator is in a relationship of trust to the
Parties and should not, at any time, use confidential information acquired during the course of the
proceedings to gain personal advantage or advantage for others, or to affect adversely the interest of
another.

15.13 This Code is not intended to provide grounds for the setting aside of any award.

Rule 16 – Challenge of Arbitrators

16.1 An arbitrator may be challenged if there are circumstances that give rise to justifiable doubts as to his
impartially or independence and also if he has committed any misconduct.

16.2 An arbitrator may also be challenged if he does not possess the qualifications required by the agreement
of the parties.

16.3 A Party may challenge an arbitrator appointed on its nomination or with its agreement only for reasons
of which it becomes aware after the appointment has been made.

16.4 A party who intends to challenge an arbitrator shall file with the Secretary and serve on the other party
or all other parties, whichever is applicable, a Notice of Challenge.

16.5 The Notice of challenge must be filed and served within 14 days from the appointment of the arbitrator
or within 14 days after the circumstances mentioned in Rule 15.1 became known to that Party.

16.6 The Notice of Challenge must state the reasons for the challenge.

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16.7 The arbitration shall be suspended until the challenge is resolved or decided upon.

16.8 When an arbitrator has been challenged by one Party, the other party may agree to the challenge. The
arbitrator may also, after the challenge, withdraw from his office. However, it is not implied in either
case that there has been an acceptance of the validity of the grounds for the challenge. In both cases, the
procedure provided in Rule 11 read with Rule 13, shall be used for the appointment of a substitute
arbitrator.

Rule 17 – Decision on Challenge

17.1 If the other Party does not agree to the challenge and the arbitrator does not withdraw, the decision on
the challenge will be made by the Governing Body.

17.2 If the Governing Body sustains the challenge, a substitute arbitrator shall be appointed or chosen
pursuant to the procedure applicable to the appointment of an arbitrator as provided in Rule 11 read with
Rule 13. If the Governing Body dismisses the challenge, the arbitrator shall continue with the arbitration.

Rule 18 – Removal of the Tribunal

18.1 The Governing Body may on the application of a party remove an arbitrator:

a. Who is physically or mentally incapable of conducting the proceedings or where there are
justifiable doubts as to his ability to do so: or

b. Who has refused or failed to use all reasonable dispatch in conducting the arbitration or making
an award.

c. Who has continuously absented from attending the proceedings for more than 3 sitting without
prior permission of Presiding Arbitrator/Governing Body of SAROD.

18.2 The arbitrator(s) concerned is entitled to appear and be heard at the hearing of the application to remove
him.

18.3 Upon the removal of the arbitrator, a substitute arbitrator shall be appointed in accordance with Rule 11
read with Rule 13.

18.4 The Governing Body’s decision on the application is final and is not subject to appeal or review.

Rule 19 – Re-hearing in the Event of Replacement of the Tribunal

If the sole or presiding Arbitrator is replaced, there shall be a re-hearing. If any other arbitrator is
replaced, such re-hearing may take place at the discretion of the Tribunal.

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Rule 20 – Jurisdiction of the Tribunal

20.1 The Tribunal shall have the power to rule on its own jurisdiction, including any objection with respect
to the existence, termination or validity of the arbitration agreement. For that purpose, an arbitration
agreement which forms part of a contract shall be treated as an agreement independent of the other terms
of the contract. A decision by the Tribunal that the contract is null and void shall not entail ipso jure the
invalidity of the arbitration agreement.

20.2 The plea that the Tribunal does not have jurisdiction shall be raised not later than in the Statement of
Defense. A plea that the Tribunal is exceeding the scope of its authority shall be raised promptly after
the Tribunal has indicated its intention to decide on the matter alleged to be beyond the scope of its
authority. In either case the Tribunal may nevertheless admit a late plea under this Rule if it considers
the delay justified. A Party is not precluded from raising such a plea by the fact that he has nominated,
or participated in the appointment of an arbitrator.

20.3 The Tribunal must rule on an objection that it lacks jurisdiction as a preliminary question upon the
objection being raised. It may rule on an objection that it exceeds the scope of its authority either as a
preliminary question or in an award on the merits, as it deems just and convenient.

20.4 In addition to the jurisdiction to exercise the powers defined elsewhere in these Rules, the Tribunal shall
have jurisdiction to determine any question of law arising in the arbitration; proceed with the arbitration
not with sanding the failure or refusal of any Party to comply with these Rules or with the Tribunal’s
orders or directions, or to attend any meeting or hearing, but only after giving that Party written notice
that it intends to do so; and to receive and take into account such written or oral evidence as it shall
determine to be relevant, whether or not strictly admissible in law.

Rule 21 – Fees of SAROD and Arbitral Tribunal

21.1 Fees will be payable to the Arbitrators as per SAROD Fee Schedule, as amended from time to
time.

21.2 Membership Fee (Non – Refundable):

a. The Membership fee of SAROD is as under:

Sl. No. Membership Type Fee

1 Primary ₹ 2,00,000/-
2 Associate ₹ 1,00,000/-
Note: The GST at the rate of 18% will be applicable on above membership fee.

b. The Primary and Associate Memberships are valid for a period of 5 years.

21.3 SAROD administrative fees shall be paid by both parties to the Secretariat at the rate of ₹ 7,000/- (plus
18% GST) per hearing.

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Rule 22 - Transmission of File to the Tribunal

22.1 The Secretary shall, as soon as practicable transmit to the Tribunal, a file containing the Notice of
Arbitration, the Response and all case statements.

22.2 The Tribunal shall as soon as practicable, after consultation with the Parties, issue such orders and/or
directions as are necessary for the conduct of the arbitration to conclusion, including a timetable for
steps to be taken in the arbitration and for the hearing of the arbitration.

Rule 23 – Judicial Seat of Arbitration

23.1 Unless otherwise agreed by the Parties, the judicial seat of arbitration shall be New Delhi. The venue
for the Arbitration meeting shall be organized by the SAROD Secretariat.

23.2 Notwithstanding Rule 22 and 23.1, the Tribunal may, unless otherwise agreed by the Parties, hold
hearings and meetings anywhere convenient, subject to the provisions of Rule 28.2.

Rule 24 – Language of Arbitration

The language of arbitration proceedings shall be English. In case material existing are in any other
language, other than English the same has to be translated to English language.

Rule 25 – Conduct of the Proceedings

The Tribunal shall have the widest discretion allowed by the Act to ensure the just, expeditious,
economical and final determination of the dispute. The proceedings shall be conducted from 10.00 AM
to 5.00 PM with a recess of one hour.

Rule 26 – Communication between Parties and the Tribunal

26.1 Where the Tribunal sends any written communication to one Party, it shall send a copy to the other Party
or parties as the case may be.

26.2 Where a Party sends any written communication (including Statements, expert reports or evidentiary
documents) to the Tribunal, the same shall be copied to the other party or all other parties, whichever is
applicable, and show to the Tribunal that the same has been so copied.

26.3 The address of the Parties for the purpose of all communications during the proceedings shall be those
set out in the Notice of Arbitration, or as either Party may at any time notify the Tribunal and the other
Party or Parties, whichever is applicable.

26.4 A copy of correspondence between the Parties and the Tribunal shall be sent to the Secretary.

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Rule 27 – Party Representatives

Any Party may be represented by legal practitioners or any other representatives, subject to such proof
of authority as the Tribunal may require. The names and addresses of such representatives must be
notified to the other Party or Parties. In case one Party is represented by non-legal person, other Party
will also be represented by non-legal person so as to maintain natural justice.

Rule 28 – Hearings

28.1 Unless the Parties have agreed on documents-only arbitration, the Tribunal shall hold a hearing for the
presentation of evidence by witnesses, including expert witnesses, or for oral submissions.

28.2 The Tribunal shall fix the date, time and place of any meetings or hearings to be held during the Arbitral
proceedings on the first date of hearing, and complete time table pertaining to all the activities of the
Arbitration e.g. submission of statement of claim, reply, counter claim, reply therein, admission and
denial of documents, visit/inspection of site if any. The Tribunal shall stick to the time table without any
deviations unless there are unavoidable circumstances warranting such deviation which will be with the
prior permission of the Tribunal.

28.3 Prior to the hearing, the Tribunal may provide to the Parties the matters or questions, which it wishes
them to give special consideration.

28.4 In the event that a Party to the proceedings without sufficient cause, fails to appear at a hearing of which
the notice has been given, the Tribunal may proceed with the arbitration and may make the Award after
the Party present has submitted evidence to prove its case.

28.5 All meetings and hearing shall be in private unless the Parties agree otherwise.

Rule 29 – Documents Only Arbitration

29.1 The Disputes may be decided without an oral hearing if it is so agreed by the parties.

29.2.1 Where the parties agree to dispense with oral hearing, the Tribunal must be promptly informed by either
of the parties, as soon as is practicable. The Tribunal must also be promptly informed it, at a later stage,
the parties or either of them intends to apply for an oral hearing.

29.2.2 Parties may seek discovery of documents if they are not satisfied with existence of documents annexed
with statement of claim, reply and counter claim by giving self-contained request to the Tribunal
justifying the necessity for such documents. Decision of tribunal shall be final and binding upon the
parites.

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Rule 30 – Witnesses

30.1 The Tribunal may require each Party to give notice of the names and description of the witnesses it
intends to call and reasons for legal necessity of such witness.

30.2 No Party shall call any expert witness without the leave of the Tribunal.

30.3 Any witness who gives evidence may be questioned by each Party or its representative subject to any
rulings made by the Tribunal.

30.4 A Witness may be required by the Tribunal to testify under oath or affirmation.

30.5 Subject to such order or direction which the Tribunal may make, the testimony of witness may be
presented in written form, either as signed statements or by duly sworn or affirmed affidavits.

30.6 Any Party may require a witness to attend an oral examination at a hearing. If the witness fails to attend,
the Tribunal may consider the written testimony in such manner and to such extent as it thinks fit, or
may exclude it altogether.

30.7 The Tribunal shall determine the admissibility, relevance, materiality and weight of the evidence given
by any witness.

Rule 31 – Experts Appointed by the Tribunal

31.1 Unless otherwise agreed by the Parties, the Tribunal may:

a. appoint one or more experts to report the Tribunal on specific issues;

b. require a Party to give any such expert any relevant information or to produce, or to provide
access to, any relevant documents, goods or property for inspection by the expert.

31.2 Unless otherwise agreed by the Parties, if a party so requests or if the Tribunal deems it fit, the expert
shall, after delivery of his written or oral report, participate in an oral hearing, at which the Parties may
question or cross examine him in order to testify on the points at issue.

31.3 Rule 30.2 shall not apply to an assessor appointed by agreement of the Parties, or to an expert appointed
by the Tribunal to advise solely in relation to procedural matters.

Rule 32 – Rules applicable to substance of dispute- (1) Where the place of arbitration is situated in India,

32.1 The Tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for
the time being in force in India;

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Rule 33 – Closure of Hearing

33.1 The Tribunal may inquire of the Parties if they have any further proof to offer or witnesses to be heard
or submission to make and, if there are none, declare the hearing closed.

33.2 The Tribunal may also, in view of exceptional circumstance, reopen the hearings at any time before the
award is made.

Rule 34 – Additional Powers of the Tribunal

34.1 In addition to the powers conferred by the Act, the Tribunal shall also have the power to:-

a. Allow any party, upon such terms(as to costs and otherwise) as it shall determine, to amend claims
or counterclaims;
b. Extend or abbreviate any time limits provided by these Rules;
c. Conduct such enquires as may appear to the Tribunal to be necessary or expedient;
d. Order the Parties to make any property or thing available for inspection
e. Order any Parties to produce to the Tribunal, and to the other parties for inspection, and to supply
copies of any documents or classes of documents in their possession, custody or power which the
Tribunal determines to be relevant;
f. Make orders or give directions to any party for interrogatories;
g. Make orders or give directions to any party for an interim injunction or any other interim measure;
h. Make such orders or give such directions as it deems fit in so far as they are not inconsistent with
the Act or any statutory re-enactment thereof or such law which is applicable or these Rules.

34.2 If the parties so agree, the Tribunal shall also have the power to add other parties (with their consent) to
be joined in the arbitration and make a single Final Award determining all disputes between them.

Rule 35 – Deposits of Costs and Expenses

35.1 The deposits in respect of Tribunal’s fees and SAROD administration fees shall be ascertained in
accordance with the Schedule of Fees and SAROD administrative fee as amended from time to time.

35.2 The Claimant shall deposit with the SAROD, half of the fees payable at the time of filing of the
Statement of Case. The Respondent shall deposit with the SAROD one-half of the fees payable at the
time of filing of Statement of Respondent’s Defence and Counterclaim (if any). The balance of fees
payable shall be paid 60 days before the date of the final hearing or on such other date that the Secretary
may direct.

35.3 Where the amount of the claim or the counterclaim is not quantifiable at the time of payment is due, the
Secretary will make a provisional estimate. The fees will be adjusted in the light of such information as
may subsequently become available. If the arbitration is settled or disposed of without a hearing, the
amount of the Tribunal’s fees and SAROD administration fees shall be finally determined by the
Secretary who will have regard to all the circumstances of the case, including the stage of proceedings
at which the arbitration is settled or otherwise disposed of.

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35.4 The Secretary may from time to time direct Parties to make one or more deposit(s) towards any further
expenses incurred or to be incurred on behalf of or for the benefit of the Parties.

35.5 All deposit(s) shall be made to and held by the SAROD. Any interest which may accrue on such
deposit(s) shall be retained by the SAROD.

35.6 If a Party fails to make the payments or deposits required or directed, the Tribunal may refuse to hear
the claims or counterclaims, whichever is applicable, by the non-complying Party, although it may
proceed to determine claims or counterclaims by any Party who has complied with orders.

35.7 The Parties shall remain jointly and severally liable to the SAROD for payment of all such fees and
expenses until they have been paid in full even if the arbitration is abandoned, suspended or concluded,
by agreement or otherwise, before the final Award is made.

Rule 36 – Decision Making by the Tribunal

36.1 Where a Tribunal has been appointed, any direction, order, decision or award of the Tribunal must be
made by the whole Tribunal or a majority. If an arbitrator refuses or fails to sign the Award, the
signatures of the majority shall be sufficient, provided that the reason for the omitted signature is stated
in the Award.

36.2 If there is no unanimity, the Award shall be made by the majority arbitrators as well as by the dissenting
Arbitrator alone as if acting as a sole arbitrator.

36.3 However, in the case of a three-member Tribunal the presiding arbitrator may, after consulting the other
arbitrators, make procedural rulings alone.

Rule 37 – The Award

37.1 It will be mandatory for the Parties to submit written synopsis of their arguments respectively which
will form part of the arbitral proceedings.

37.2 The Tribunal shall assemble at the assigned place in the office or premises of SAROD and shall exercise
utmost secrecy and confidentiality in writing the award.

37.3 Unless the Secretary extends the time or the Parties agree otherwise, the Tribunal shall make its Award
in writing within 30 days from the date on which the hearings are closed and shall state the reasons upon
which its award is based. The award shall contain the date and shall be signed by the arbitrator or
arbitrators.

37.4 The Tribunal may make interim awards or separate awards on different issues at different times.

37.5 All Awards must be submitted by the Tribunal to the Secretary and they shall be issued through the
Secretary.

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37.6 The Tribunal must deliver to the Secretary sufficient number of originals of the Award for being
delivered to the Parties and for filing with the Secretary.

37.7 The Secretary shall deliver the award to the Parties only upon receipt of sufficient deposits to cover the
fees and expenses due to the Tribunal and to the SAROD.

37.8 By agreeing to have arbitration under these Rules, the Parties undertake to carry out the Award without
delay.

37.9 Stamp duty on Award shall be payable by the Party in whose favor the Award has been pronounced.

Rule 38 – Additional Award

38.1 Within 30 days after the receipt of the Award, either Party, with notice to the Secretary or the other Party
may request the Tribunal to make an Additional Award as to claims presented in the arbitral proceedings
but omitted from the Award.

38.2 If the Tribunal considers the request for an Additional Award to be justified and considers that the
omission can be rectified without any further hearings or evidence, it shall notify all the Parties within
7 days of the receipt of the request, that it will make and Additional Award, and complete the Additional
Award within 30 days after the receipt of the request.

Rule 39 – Correction of Awards

39.1 Within 30 days of receiving an Award, unless another period of time has been agreed upon by the Parties,
a Party may by notice to the Secretary and the other Party request the Tribunal to correct in the Award,
any errors in computation, any clerical or typographical errors or any errors of similar nature.

39.2 If the Tribunal considers the request to be justified, it shall make the correction(s) within 30 days of
receiving the request. Any correction shall be notified in writing to the Parties and shall become part of
the Award.

39.3 The Tribunal may correct any error of the type referred to in Rule 39.1 on its own imitative within 30
days of the date of the Award.

Rule 40 – Settlement

40.1 If, the Parties arrive at amicable settlement of the dispute during the currency of Arbitral proceedings,
the Parties shall file memo of settlement before the Tribunal who shall either issue an order for the
termination of the arbitral proceedings or, if requested by both Parties and accepted by the Tribunal,
record the settlement in the form of an Arbitral Award on agreed terms. The Tribunal is not obliged to
give reasons for such an award.

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40.2 The Parties shall:

a. Notify the Tribunal and the Secretary immediately if the arbitration is settled or otherwise
terminated:

b. Make provision in any settlement for payment of all the costs of the arbitration and fees and expenses
due to the SAROD and the Tribunal.

40.3 If the continuation of the arbitral proceedings becomes unnecessary or impossible for any reason not
mentioned in Rule 38.1, before the award is made, the Tribunal shall inform the parties of its intention
to issue an order for the termination of the proceedings. The Tribunal shall have the power to issue such
an order unless party raises justifiable grounds for objection.

40.4 Copies of the order for termination of the arbitral proceedings or of the Arbitral Award on agreed terms,
signed by the Tribunal, shall be communicated by the Tribunal to the parties through the Secretary.

Rule 41 – Interest

The Tribunal may award interest on any sum awarded at such rate as applicable in fixed deposits of
State Bank of India in respect of such periods ending not later than the date of the award as the Tribunal
considers just.

Rule 42 – Costs

42.1 The Tribunal shall specify in the final award, the costs of the arbitrations and decide which Party shall
bear them and in what proportion they shall be borne.

42.2 In this Rule, “costs of the arbitration” shall include:

a. The fees and expenses of the Tribunal and the administration fees of the SAROD as
determined by the Secretary in accordance with the Schedule of Fees;

b. The costs of tribunal appointed experts or of other assistance rendered: and

c. All expenses which are reasonably incurred by the SAROD in connection with the
arbitration.

42.3 The Tribunal has power to order in its Award, that all or part of the legal or other costs (such as legal
fees and expenses, costs incurred in respect of party appointed experts etc) of one Party shall be paid by
the other Party.

Rule 43 – Waiver

A Party which is aware of non-compliance with these Rules and yet proceeds with the arbitration without
promptly stating its objection in writing to such non-compliance shall be deemed to have waived its
right to object.
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Rule 44 – Exclusion of Liability

44.1 The Tribunal, the President, the SAROD and any of its officers, employees or agents shall not be liable
to any Party for any act or omission in connection with any arbitration conducted under these Rules.

44.2 After the Award as been made and the possibilities of corrections and additional Awards have lapsed or
been exhausted, neither the Tribunal nor the President shall be under any obligation to make any
statement to any person about any matter concerning the arbitration, and no Party shall seek to make
any arbitrator or the President or the SAROD and any of its officers a witness in any legal proceedings
arising out of the arbitration.

Rule 45 – General Provisions

45.1 In all matters not expressly provided for in these Rules, the President, the Secretary and the Tribunal
shall act in the spirit of these Rules and shall make every reasonable effort to ensure the just, expeditious
and economical conclusion of the arbitration.

45.2 The Secretary may from time to time issue Practice Notes on the implementation of these Rules.

45.3 The Secretary is authorized to initiate action in case of violation of Code of Ethics by Arbitrators as per
rules and place before the Governing Body for decision.

Rule 46 – Amendment to Rules

These Rules may from time to time be amended by the Governing Body of SAROD.

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