Nepal | Chapter 6
Cost of Arbitration Proceedings:
Except when otherwise provided for in the agreement, the parties seeking arbitration must pay to the arbitrator the amount fixed their in consultation with parties for conducting the arbitration proceedings.
Except the otherwise provided in the agreement, each party shall bear the expenses required for the arbitration proceedings in the proportion prescribed by the arbitrator taking into account the relevant circumstances.
The arbitrator’s remuneration shall be as prescribed in the agreement.
In case the arbitrator’s remuneration is not mentioned in the agreement, the concerned parties shall pay the remuneration fixed by the arbitrator in consultation with them. Such remuneration shall be paid as a full payment or in the form of advance payment as ordered by the arbitrator in consultation with the concerned parties.
Arbitrator To Refund Payments: In case no hearing has been made on the dispute referred to the arbitrator, or the position of arbitrator falls vacant for any reason, the concerned arbitrator, if he/she has already received remuneration under Section 36, shall refund the balance left after deducting. The amount covering the period for which he has worked, in consultation with the parties. Provided that in case any arbitrator is removed under Section 11, he/she shall fully refund the remuneration amount received by him/she prior to that, if any.
Devolution of Rights and Liabilities: In case any party dies, disappears or becomes insane after the commencement of arbitration proceedings under this Act, all his rights and liabilities shall devolve on his/her relative who is entitled to inherit his/her property upon the prevailing law.
Court to Have No Jurisdiction: Notwithstanding anything contained in the prevailing law, no court shall have jurisdiction over any matter regulated by this Act, except when otherwise provided for in this Act.
Parties may Compromise: In case the parties to a dispute which has been referred for arbitration under this Act desire to reach a compromise they may submit an application to the arbitrator explicitly mentioning the conditions under which they wish to do so. The arbitrator shall approve the application so filed, and no appeal may be filed against such award except on issues concerning actions not taken according to the condition for compromise.
Payment of Fees for Implementing the Award :
Notwithstanding anything contained in the prevailing law, a fee amounting to 0.5 percent of the amount received through the implementation of the award of the arbitrator shall be paid to the concerned court in the form of a fee for having implemented the award. In case the award to be so implemented does not concern for payment of any amount, a fee amounting to 0.5 percent of the current market value or amount of the action to be taken or has to be taken according to the decision, if the same can be determined, and if not, a sum of Rs 500/- shall be paid by the party requesting for the implementation of the award.
In case any party who pays the fee mentioned in Sub-section (1) wishes to have it realized from the other party, the District Court shall have it realized from the other party as in the case of court fees according to the prevailing law.
Case Files Relating to Arbitrator:
The arbitrator shall prepare a case file of the document, evidence, statement of the concerned persons award and all other documents connected with arbitration mentioning date and time in a chronologically order .
After the finalization of the arbitration proceedings, the arbitrator shall submit the concerned case-file to the District Court. (3) The District Court shall keep the case-file received pursuant to Sub-section (2) as safely as it keeps the case-files of its judgments.
Notwithstanding anything contained in the prevailing law, nocopy of the award and documents related thereto shall be given to any person other than the concerned parties without their approval.
Power to Frame Rules: The Supreme Court may frame necessary Rules in respect to the procedure of regulating the functions to be discharged by courts under this Act.
Repeal and Saving: The Arbitration Act, 2038 (1981) has been repealed.
In the case of an arbitration whose proceedings have been started prior to the commencement of this Act, 2041(1984) the procedure laid down in the 1984 Arbitration Act itself shall be adopted.
The Time limit and grounds for filing appeal against the award taken through arbitration under the Arbitration
Act, 2038 (1981) shall be as mentioned in the Arbitration Act, 2038 (1981).
(Relating to Section 9)
In the dispute referred to me/us for arbitration between ............ and .........., I/we shall work in an impartial and honest manner without any bias toward any party.
Name Signature Date