The Law Commission of India, in its 246th report,
noted that one of the problems associated with arbitration in India
(especially ad hoc arbitrations) is the high quantum of
fees charged by arbitrators.1 The Report went so far as to call
the fees "arbitrary, unilateral and
disproportionate". The Commission recommended the
adoption of a model schedule of fees for Courts to consider while
framing rules for fixing of the fees of arbitrators appointed in
accordance with Section 11 of the Arbitration and Conciliation Act,
1996 (the Act). The Commission restricted its
suggestions to ad hoc domestic arbitrations, noting that
different standards may apply in institutional arbitrations and in
international commercial arbitrations (where the Commission
recommended greater deference to party autonomy).
