- In relation to any arbitral proceedings or a proceeding under this Act,—
- the Court or arbitral tribunal, notwithstanding anything contained in the Code of Civil Procedure, 1908, shall have the discretion to determine—
- whether costs are payable by one party to another;
- the amount of such costs; and
- when such costs are to be paid.
- the Court or arbitral tribunal, notwithstanding anything contained in the Code of Civil Procedure, 1908, shall have the discretion to determine—
- If the Court or arbitral tribunal decides to make an order as to payment of costs,—
- the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party; but
- the Court or arbitral tribunal may make a different order for reasons to be recorded in writing.
- In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, including—
- the conduct of all the parties;
- whether a party has succeeded partly in the case;
- whether the party had made a frivolous counterclaim leading to delay in the disposal of the arbitral proceedings; and
- whether any reasonable offer to settle the dispute is made by a party and refused by the other party.
- The Court or arbitral tribunal may make orders specifying the amount of costs or that costs shall be in accordance with such a proportion or such amount as may be specified and the stage of the arbitral proceedings or proceedings at which the order or orders are made.
Chapter IV — Part I — Making of Arbitral Award and Termination of Proceedings (Sections 28–33)
Section 31A
Regime for costs
Printed from Law on Tips • Arbitration and Conciliation Act, 1996