What is Agreement For Reference To Two Arbitrators?
Section 7 defines an Arbitration Agreement wherein parties agree to submit all/any of disputes whether contractual or not in a written format for purposes of evidence, in same or separate Agreement intended to apply to main contract. Section 8 states reference to Arbitration by a Judicial Authority before which matter is brought that is originally covered under Arbitration. Either Party to the Arbitration Agreement or claiming under him, upto submission of 1st statement on substance of dispute proves existence of a valid Arbitration Agreement. Judicial Authority on being satisfied of such presence of Agreement on same subject is bound to send the other party for Arbitration.
The arbitrators shall issue notice to the parties for an appearance to clear the position of dispute and produce evidence that they think is proper. The aforesaid two arbitrators shall have the power to appoint an Umpire at any time of the period during which they have to make the award. If the arbitrators agree among themselves on the matter of dispute, then their award shall be final. If they differ on the matters, then umpire shall decide the matter and the award by the umpire shall be binding on the parties.
Need of Agreement For Reference To Two Arbitrators?
If the arbitrators agree among themselves on the matter of dispute, then their award shall be final. If they differ on the matters, then umpire shall decide the matter and the award by umpire shall be binding on the parties.
FAQ For Agreement For Reference To Two Arbitrators
Q1. Can there be 2 arbitrators?
Ans – Each party shall appoint one arbitrator. The two arbitrators thus appointed shall choose the third arbitrator who will act as the presiding arbitrator.
Q2. What is the difference between arbitration agreement and reference?
Ans – “The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.”
Q3. What is the order of reference in arbitration?
Ans – Parties to suit may apply for order of reference .-Where in any suit all the parties interested agree that any matter in difference between them in the suit shall be referred to arbitration, they may at any time before judgment is pronounced apply in writing to the Court for an order of reference.
Q4. What is referencing in arbitration?
Ans – The Terms of Reference are a contractual instrument signed by the parties and the arbitrators after the arbitral tribunal is constituted. Its main objective is to define the dispute in a clear manner and to evidence the agreement of the parties in regard to procedural matters.
Q5. Is the reference to arbitration mandatory?
Ans – The Supreme Court reiterated that a dispute cannot be referred to arbitration based on the arbitration clause contained in another contract unless a specific reference was made in the main contract to incorporate the arbitration clause into the main contract.
Agreement For Reference To Two Arbitrators
THIS AGREEMENT made on the…day of…BETWEEN AB, etc., of the one part AND CD, etc. of the other part.
WHEREAS the parties aforesaid have been carrying on the business as partners in the name and style of. …at…under a partnership deed dated……….;
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AND WHEREAS each party has contributed to the capital of the partnership RS…and has been sharing the profit and loss of the partnership in equal shares;
AND WHEREAS the business in the partnership has been carried on for the last …years,
AND WHEREAS disputes and difference have arisen between the parties hereto rendering it impossible to carry on the business in the partnership; and
AND WHEREAS the parties have agreed to refer the following matters for the decision of two arbitrators, namely M/s……………. AND……………………
(1) The amount of profit and loss as per the books of account of the partnership;
(2) The liability of the parties to pay the amounts on settlement of accounts; and
(3) Fixation of the date on which the partnership shall be deemed to be dissolved.
NOW IT IS HEREBTY AGREED as follows:
1. The arbitrators shall enter upon the reference and decide the aforesaid matters.
2. The arbitrators shall make their award within three months after entering upon the reference or after having been called on to act by notice in writing from any party to the submission, or on or before any later day to which the arbitrators by any writing signed by them may from time to time enlarge the time in making the award.
3. The aforesaid two arbitrators shall have the power to appoint an Umpire at any time of the period during which they have to make the award.
4. If the arbitrators agree among themselves then their unanimous decision shall award and will be binding on the parties. If the arbitrators do no agree, then the umpire shall make his award within one month, after the original or extended time appointed for making the award of the arbitrators has expired, or on before any later day to which the Umpire by any writing signed by him, may from time to time enlarge the time for making the award and in that case the decision of the Umpire shall be binding on the parties.
5. The arbitrators may proceed ex part in case the either party fails to appear after reasonable notice.
6. This agreement shall remain effective and enforceable against the legal representatives of either party in case of death.
7. The arbitrators may appoint an accountant for examining the account of the party if they think necessary and the remuneration of the accountant as determined by the arbitrators shall be the costs in the reference to be paid by the parties as the arbitrators may direct in their award.
8. In case the arbitrators award that any sum is due from one party to the other, then the party to whom the said sum is awarded may apply to the court for having a decree passed in terms of the award and may realise the amount in execution of the decree from the other party.
9. The provisions of the Indian Arbitration & Conciliation Act, 1996, shall apply to this reference.
10. The costs of this reference shall be in the discretion of the arbitrators.
IN WITNESS WHEREOF the parties hereto have signed this agreement on the day and year first written above.
…(Sd.)
(AB)
…(Sd.)
(CD)
