Fixing Arbitrators’ Fees #7

Revising Fee Scale For Arbitrators

On May 11th 2022, Justices D.Y. ChandrachudSanjiv Khanna, and Surya Kant will continue to hear the Union Government’s demands to cap arbitrator’s fees. The Bench is hearing arguments on whether fees should be determined based on the claim and counterclaim separately.

In the previous hearing, the Amicus Senior Advocate Huzefa Ahmadi submitted that the ‘sum in dispute’ based on which the fee is calculated should be assessed for each arbitration. If the term means both the claim and counterclaim, the fee levied would be on the sum of these figures. However, if claim and counterclaim are distinct, the fee levied should also be distinct. Counterclaim should be considered as an independent dispute from a claim. Each counterclaim requires a separate examination of evidence and witnesses. The treatment of a counterclaim, therefore, should be charged separately from a claim.