Schedule 4 – Defines the Tribunal Fee Structure
An arbitral tribunal in the matter between Gammon Engineers and Contractors Pvt Ltd and National Highway Authority of India held that fee has to be fixed as per Fourth Schedule. Aggrieved by this, NHAI filed application under Section 14 before the High Court for termination of the mandate of the arbitrator on the ground that arbitrator has incurred disqualification for ‘wilfully disregarding the agreement between parties’. It was held that Fourth Schedule was not mandatory.
- Gammon Engineers and Contractors Pvt Ltd challenged the High Court Order by filing appeal in Supreme Court bearing Civil Appeal No. 5383 of 2019 in SLP (C) No. 3211 of 2018 with SLP (C) No. 22099 of 2018.
REFER : JUDGEMENTS
- National Highways Authority of India v. Gayatri Jhansi Roadways Limited
- Gammon Engineers and Contractors Pvt Ltd and National Highway Authority of India ( in Supreme Court bearing Civil Appeal No. 5383 of 2019 in SLP (C) No. 3211 of 2018 with SLP (C) No. 22099 of 2018 )
On 10th July, 2019 the bench of Justices R F Nariman and Surya Kant overruled the Delhi High Court decision in NHAI Vs Gayatri Jhansi Roadways Limited Dt 11.09.2017, in which it was held that arbitral fee will be governed by Fourth Schedule of the Act superseding the fee fixed by the agreement.
The bench approved the dictum of the Delhi High Court in NHAI Vs Gammon Engineers and Contractors Pvt Ltd that Fourth Schedule of the Act was not mandatory in determining fees and that the arbitral tribunal will be bound by the fees fixed by agreement.