Report No. 76

4.37. Fees.-

More important is the question of fe s. Ordinarily, the fees of the arbitrator or umpire must be fixed by an agreem between the parties and the arbitrator or umpire. There is, it has been held 1, nothing illegal in the arbitrator or umpire demanding fees before the award, provided the amount demanded is reasonable and not extravagant, and is demanded from both parties equitably within the knowledge of both the parties.

Difficulties, however, arise where there is no agreement as to the amount or no agreement as to the time of payment of the fees. In order to settle the position in this regard, we consider it desirahltit2 add certain provisions to section 38. The salient features of the proposed provisions are In the absence of agreement, any party or arbitrator or umpire may apply to the Court (after entering on reference) to fix the fees. It shall also be open to any party, arbitrator or umpire to apply for variation of the fees so fixed, by showing proper cause. where the fees have been fixed by agreement or by an order of the court, the court may compel the party or parties concerned to deposit fees.

1. Teja Singh v. Union of India, AIR 1955 All 666.

2. Section 38 to be amended; see para. 8.59, infra.