Arbitrator's Fee: Supreme Court Settles The Law

The Supreme Court of India in the matter of Oil & Natural Gas Corporation Ltd. vs. Afcons Gunanusa JV - 2022 SCC OnLine SC 1122  had  resolved various issues circling around the Arbitrators' fee. The Court while dealing with the question of Arbitrator's fee framed the following issues, which are discussed separately in this article:

(I) Whether the arbitrator(s) are entitled to unilaterally determine their own fees?

(II) Whether the term “sum in dispute” in the Fourth Schedule to the Arbitration Act, means the cumulative total of the amounts of the claim and counter-claim?

(III) Whether the ceiling of ₹30,00,000 in the entry at Serial No. 6 of the Fourth Schedule of the Arbitration Act is applicable only to the variable amount of the fee or the entire fee amount? and