Report No. 176
Parties to be bound by the procedure and time schedule
7. The time schedule fixed under paragraphs (3) and (5) and the procedure specified under paragraph (6) by Fast Track Arbitral Tribunal , shall be binding on the parties.
Consultation of experts
8. (1) At any time during the course of arbitration and before the passing of the award, the Fast Track Arbitral Tribunal may, at its discretion, if need be, consult any expert or technically qualified person or a qualified accountant for assistance in relation to the subject matter in dispute, at the expense of the parties, and shall communicate the report of the above said person to the parties to enable them to file their response.
(2) If the Fast Track Arbitral Tribunal thereafter considers on its own or on the request of parties that any clarification or examination of the above said persons referred to in sub-paragraph (1) or examination of any other person is necessary, it may call upon the said person to clarify in writing or to call him or such other person as a witness for necessary examination.
Procedure in cases of default by parties
9. (1) In case there is default on the part of any party to adhere to the time limits specified in this Schedule or are fixed by the Fast Track Arbitral Tribunal or there is violation of any interim orders or directions of the Fast Track Arbitral Tribunal issued under section 17 or under this Schedule, the Fast Track Arbitral Tribunal may pass peremptory orders against the defaulting party giving further time for compliance including peremptory orders to provide appropriate security in connection with an interim order or direction.
(2) In case the Fast Track Arbitral Tribunal is satisfied that a party to the arbitration is unduly or deliberately delaying the arbitral proceedings, or the implementation of the peremptory orders, the Fast Track Arbitral Tribunal may impose such costs as it may deem fit on the defaulting party or may pass an order striking out the pleadings of the party concerned or excluding material or draw adverse inference against the said party and in case security for costs of arbitration is not furnished as required under sub paragraph (1), the claim may be dismissed.
(3) Without prejudice to the provisions of sub-paragraph (2), the Fast Track Arbitral Tribunal may dismiss the claim if the claimant does not effectively prosecute the arbitration proceedings or file the papers within the time granted or neglects or refuses to obey the peremptory orders of the tribunal or to pay the dues or deposits as ordered by the Fast Track Arbitral Tribunal:
Provided that failure to file a statement of defence to the claim statement or to the counter claim shall not by itself be treated as an admission of the allegations in the claim statement or in the counter claim, as the case may be.
(4) If the opposite party does not file its defence or does not effectively prosecute its defence or file the papers within the time granted or refuses to obey the peremptory orders of the tribunal, the Fast Track Arbitral Tribunal may make an ex parte award.
Fast Track Award to be passed in six months
10. (1) The Fast Track Arbitral Tribunal shall pass an award within six months from the date of the constitution of the Fast Track Arbitral Tribunal or within such extended period as specified in sub paragraphs (2) to (4).
(2) The parties may, by consent, extend the period in subparagraph (1), by a further period not exceeding three months.
(3) If the Fast Track Arbitration Award is not made within the period specified under subparagraph (1) and the period agreed to by the parties under subparagraph (2), the arbitration proceeding shall, subject to the provisions of sub-paragraph (4), stand suspended until an application for extension is made to the High Court by any party to the Fast Track Arbitration or where none of the parties makes an application as foresaid, until such an application is made by the arbitral tribunal.
(4) The provisions of subsections (4) to (8) of section 29A shall, so far as may be, apply to the High Court for the disposal of application referred to in sub paragraph (3), till the award is passed.
Fast Track Award to contain reasons
11. The Fast Track Arbitral Tribunal shall pass an award and give reasons for its award keeping in mind the time limit referred to in paragraph 10 unless it is agreed between the parties that no reason need be given or the award is based on settlement of disputes.