ARBITRATION RULES OF THE SOCIETY
FOR AFFORDABLE REDRESSAL OFDISPUTES - PORTS (SAROD-PORTS)

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ARBITRATION RULES OF SAROD-PORTS
INDEX
Rule
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.

Scope of Application
Definitions
Notice, Calculation of Periods of Time
Commencement of Arbitration
Response by Respondent
Filing of Case Statements
Contents of Case Statements
Default in Filing and Serving Case Statements
Further Written Statements
SAROD-Ports to Provide AssistanceAppointment of Tribunal
Multi-party Appointment of the Tribunal
Appointment of Substitute Arbitrator
Independence and Impartiality of the Tribunal
Code of Ethics for Arbitrators
Challenge of Arbitrators
Decision on Challenge
Removal of the Tribunal
Re-hearing in the Event of Replacement of the Tribunal
Jurisdiction of the Tribunal
Fees of SAROD-Ports and Arbitral Tribunal
Transmission of File of the Tribunal
Juridical Seat of Arbitration
Language of Arbitration
Conduct of the Proceeding
Communications between Parties and the Tribunal
Party Representatives
Hearings
Documents - only Arbitration
Witnesses
Experts Appointed by the Tribunal
Rules applicable to substance of dispute
Closure of Hearings
Additional Powers of the Tribunal
Deposits to Costs and Expenses
Decision Making by the Tribunal
The Award
Additional Award
Correction of Award
Settlement
Interest
Costs
Waiver
Exclusion of Liability
General Provisions
Amendment to Rules
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PREAMBLE
In order to seek speedy, affordable, just and reasonable RedressalofDispute/Differences
between
Major
Port
TrustsandConcessionaire/Contractor arising out of and during the course of
execution of various contracts, a Society for Affordable Resolution of
Disputes - Ports (SAROD-Ports) has been formed under the Societies
Registration Act, 1860 with registration no. S-E/1715/ Distt. South
East/2020 dated 30th January, 2020. It has been formed by Indian Ports
Association and Indian Private Ports and Terminals Association withfounding members as mentioned in the Memorandum of Association of
SAROD-Ports.

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SAROD-PORTS ARBITRATION RULES
Rule 1- Scope of Application
1.1 Where any agreement, submission or reference provides forarbitration at the Society for Affordable Resolution of Disputes - Ports("SAROD-Ports"), or under the Arbitration Rules of the SAROD-Ports andwhere the case is a domestic arbitration, the same shall be conductedin accordance with the following Rules, or such Rules as amended by the
SAROD-Ports where the amendments take effect before the commencementof the Arbitration
1.2 These rules shall come into effect from the day of approval by
Governing Body of SAROD-Ports.
Rule 2 – Definitions
2.1 These Rules shall be referred to as ''the SAROD-Ports Arbitration
Rules".
2.2

In these Rules:"Act" means the 'Arbitration and Conciliation Act, 1996' of India and any
statutory modifications or re-enactments thereof“Domestic Arbitration” means an arbitration other thaninternational commercial arbitration as defined under the Act.

an

"E-Arbitration" means submission of pleadings, defence statement etc. by
E-mail and holding of proceedings via video conferencing.
"Governing Body" means Governing Body of SAROD-Ports as defined in
Article 4 of Memorandum of Association.
“IPA” means Indian Ports Association.
"IPPTA" means Indian Private Ports and Terminals Association“Party" means a party to an arbitration agreement.
"President" means President of Governing Body of SAROD-Ports as
defined in Rules & Regulation of SAROD-Ports.
"SAROD-Ports" means the Society for Affordable Redressal of DisputesPorts.
"SAROD-Ports Arbitrator Panel" means the list of persons admitted toserve as Arbitrators under these Rules.
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“Secretary" means Secretary of SAROD-Ports as defined in Rules &Regulation of SAROD-Ports.
"Tribunal" means either a Sole Arbitrator or all Arbitrators when more than
one is appointed.
Rule 3 - Notice, Calculation of periods of Time
3.1 All communications including notice, communication, or proposal,
shall be in writing (“written communication”). Any such written
communication is deemed to have been received if it is delivered to theaddressee personally, or by post at his -(a) place of business, (b) habitualresidence, or (c)mailing address, or by any form of electronic communication(including electronic mail or facsimile) which provides a record of its
transmission or in any other manner as may be ordered by the Tribunal.
3.2 For the purposes of calculating a period of time under these Rules,
such period shall begin to run on the day following the day when a notice,notification, communication or proposal is received. If the last day of such
period is an official holiday or a non-business day at the residence orplace of business of the addressee, the period is extended until the firstbusiness day which follows. Gazetted public holidays or non-businessdays occurring during the running of the period of time are included in
calculating the period.
3.3 The transmission is deemed to have been received on the day oftransmission.
3.4 The parties shall file with the Secretary, a copy of any written
communication concerned arbitration proceedings.
Rule 4- Commencement of Arbitration
4.1 Any party wishing to commence an arbitration under these Rules ("theClaimant") shall file with the Secretary and serve on the other party {"theRespondent"), a written Notice of Arbitration (''the Notice of Arbitration")
which shall include the following:a.

a request that the dispute be referred to arbitration;b.
the names, addresses, telephone numbers, fax numbers andemail addresses of the parties to the dispute;c.
a reference to the arbitration clause or any separate arbitrationagreement that is invoked and provide a copy of the arbitration clauseor arbitration agreement;d.

a reference to the contract out of which the dispute arises and4

provide a copy of the contract where possible;e.
a brief statement describing
circumstances leading to the dispute;thenature,

facts

and

f.
the relief or remedy sought, including the amount of claim if
quantifiable at the time the Notice or Arbitration is filed;g.
a proposal as to the number of Arbitrators (i.e. one or three), if
the parties have not previously agreed on the number; andh.
The name of the proposed sole Arbitrator from the panel of
Arbitrators maintained by SAROD-Ports, or in case of a three member
Tribunal , the name of its nominee Arbitrator from the panel of
Arbitrators maintained by SAROD-Ports
4.2 A filing fee of Rs. 10,000/- (Ten Thousand rupees) or any amountdecided by Governing Body from time to time is payable at the time of filingthe Notice of arbitration.
4.3 The date of receipt of complete notice of Arbitration including therequisite filing fees with the Secretary is the date of commencement of thearbitration for the purpose of the SAROD-Ports arbitration rules.
4.4 For the avoidance of doubt, the Notice of Arbitration is deemed to becomplete when all the requirements of Rule 4.1 have been fulfilled or when
the Secretary determines that there has been substantial compliance withthe requirements.
Rule 5 - Response by Respondent
5.1 Within 14 (fourteen) days of receipt of the Notice of Arbitration, theRespondent shall file with the Secretary and serve upon on the
Claimant, a Response includinga.

A confirmation or denial of all or part of the claims;b.

Brief statement of the nature and circumstances of any
envisaged counterclaimsc.

A comment in response to any proposals contained in the
Notice of Arbitration;d.

The name of the respondent's nominated Arbitrator.

e.

Statement specifying the relief claimed, including the amountsof quantified counterclaims, if any, and if such counterclaims arequantifiable at the time the Response to Notice of Arbitration is filed;5f.

Either a confirmation to the name of the sole Arbitrator
proposed by the Claimant or in case of disagreement, propose thename of the sole Arbitrator from the panel of Arbitrators maintainedby SAROD-Ports. In case of a three member Tribunal, the name of thenominee Arbitrator from the panel of Arbitrators maintained by
SAROD-Ports will be proposed by the claimant as well as by the
respondent. In such situations, the appointment of the sole Arbitrator
or the Tribunal shall be as per the provisions of Rule 11.3.

g.

the names and contact details of the Respondent, and its legal
representatives (if any), (including
postal addresses, telephone
numbers, fax numbers, and email addresses, if available);
5.2 A filing fee of Rs. 10,000/- (Ten thousand rupees) or any amountdecided by Governing Body from time to time is payable at the time of filingthe Response.
5.3 In case parties have objection to the jurisdiction of Arbitral Tribunal,such objection shallberaised at the earliest as per the provisions of the
Arbitration and Conciliation Act, 1996.
Rule 6- Filing of Case Statements
6.1 Within 30 (thirty) days after the filing of the Notice of Arbitration, theclaimant must file with the Secretary and serve on the Respondent, aStatement of Claimant's Case alongwith all documents to be relied upon by
the Claimant.
6.2 Within 30 (thirty) days after the service of the statement ofClaimant's Case, the Respondent must file with the Secretary and serve on
the Claimant, a statement of respondent's defence and counterclaim (ifany) alongwith all documents to be relied upon by the Respondent.
6.3 Within 30 (thirty) days after the service of the statement of
Respondent's defence, if the Claimant intends to challenge anything inthe statement of Respondent's defence and/or counterclaim, the Claimantmust then file with the Secretary and serve on the Respondent, a statementofclaimant's
reply
and ifnecessary, defence to counterclaim.
6.4 No further case statements may be filed without the leave of the
Tribunal or if a Tribunal has not been appointed, the Secretary.
6.5 The Tribunal or if a Tribunal has not been appointed, the Secretary,
may upon the written application of a party, extend the time limits provided
under this Rule.
6.6 The party required to file a case statement must at the same time
deposit with the Secretary for eventual transmission to the Tribunal an6additional copy or additional copies of the case statement, according to thenumber of Arbitrators constituting or who will constitute the Tribunal.
Rule 7 - Contents of Case Statements
7.1 The case statements must contain the detailed particulars of theparty's claim, defence or counterclaim and must thus contain acomprehensive statement of the facts and contentions of law supporting theparty's position.
7.2

It must:a.

Set out all items of relief or other remedies sought together withthe amount of all quantifiable claims and detailed calculations.

b.

State fully its reasons for denying any allegation or statement of
the other party. State fully its own version of events if a party intends
to put forward a version of events different from that given by theother party.
7.3
it.

A case statement must be signed by or on behalf of the party making

Rule 8 - Default in Filing and Serving Case Statements
8.1 If the Claimant fails within the time specified under these Rules or
as may be fixed by the Tribunal or by the Secretary, to submit its
Statement of Case, the Tribunal or if a Tribunal has not been appointed,
the Governing Body may issue an order for the termination of thearbitral proceedings or make such other directions as may beappropriate in the circumstances.
8.2 If the Respondent fails to submit a Statement of Respondent's
Defence, the Tribunal may nevertheless proceed with the arbitration andmake the award.
Rule 9 - Further Written Statements
9.1 The Tribunal will decide which further written statements, inaddition to the case statement(s) already filed, are required from theparties and shall fix the periods of time for giving, filing and serving suchstatements.
9.2 All such further statements must be given to the Tribunal, filed with
the Secretary and served on the Claimant or Respondent, whichever isapplicable.
Rule 10 - SAROD-Ports to Provide Assistance7

10.1 At the request of the Tribunal or either party, the Secretary will rendersuch assistance as is required for the conduct of the arbitration, including
arranging for facilities, suitable accommodation for sittings of the Tribunal,secretarial assistance or interpretation of these rules.
10.2 Any additional expenses incurred or to be incurred for any sucharrangements shall be borne by the parties.
Rule 11- Appointment of Tribunal
11.1 The disputes shall be decided by a Sole Arbitrator when the total
claim and counterclaim (if any) as set out in the Notice of Arbitration andResponse to Notice of Arbitration respectively is Rs.3 (three) crores or less.
11.2 In all cases where amount in dispute is more than Rs.3 (three) crores,
the Tribunal shall consist of a three-member Tribunal to be nominated by
the parties.
11.3 Where the dispute is to be decided by a sole Arbitrator, both parties
shall mutually appoint a sole Arbitrator from the panel of Arbitrators
maintained by SAROD-Ports, within 15 (fifteen) days from the date of the
Notice of Arbitration. If the parties fail to agree on the appointment of
Arbitrator within 15 (fifteen) days from the receipt of a request by one party
from the other party, the appointment shall be made upon request of aparty, by the Governing Body from the panel of Arbitrators maintained by
SAROD-Ports. The Governing Body shall consider the nature of the disputeas set out in the Notice of Arbitration, and the response to the Notice of
Arbitration (if filed), prior to appointment of the sole Arbitrator.
a)Where the dispute is to be decided by a Tribunal comprising of
three Arbitrators, each party shall appoint one Arbitrator from thepanel of Arbitrators maintained by SAROD-Ports, and the two
appointed Arbitrators shall appoint the third Arbitrator from the panelof Arbitrators maintained by SAROD-Ports, who shall act as the
Presiding Arbitrator. In an arbitration by a three member Tribunal, if(i) a party fails to appoint an Arbitrator within 15 (fifteen) days fromthe receipt of request from one party to do so, or (ii) if the two
appointed Arbitrators fail to agree on the appointment of third
Arbitrator within 15 (fifteen) days from the date of their appointment,
then the appointment of the Presiding Arbitrator shall be made, upon
the request of a party by the Governing Body of SAROD-Ports from thepanel of Arbitrators maintained by SAROD-Ports.
b)
The eligibility criteria for empanelment of Arbitrators will bedecided by the Governing Body.
11.4 An Arbitrator/Presiding Arbitrator to be appointed under these Rules
shall be a person on the SAROD-Ports Arbitration Panel as at the date of theappointment.
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11.5 In the event of any party failing to appoint Arbitrator within 30
days of receipt of the notice of Arbitration, the Governing Body shallappoint the Arbitrator or Presiding Arbitrator as the case may be.
Rule 12- Multiparty appointment of the Tribunal
12.1 In an arbitration where there are more than two parties tothe arbitration and a sole Arbitrator is to be appointed in terms ofRule 11.1, the parties may agree to jointly nominate the sole
Arbitrator from the panel of Arbitrators maintained by SARODPorts. In the absence of such joint nomination having been madewithin 30 days of the date of Notice of Arbitration, the Governing
Body shall appoint the sole Arbitrator from the panel of
Arbitrators maintained by SAROD-Ports.
12.2 In an arbitration where there are more than two parties tothe arbitration, and three Arbitrators are to be appointed, theClaimant(s) shall jointly nominate one Arbitrator and the
Respondent(s) shall jointly nominate one Arbitrator, from thepanel of Arbitrators maintained by SAROD-Ports, and the two
appointed Arbitrators shall appoint the third Arbitrator from thepanel of Arbitrators maintained by SAROD-Ports, who shall act as
the presiding Arbitrator. If (i) a party [i.e. the Claimant (s) or
Respondent (s), as the case may be], fails to appoint an Arbitrator
within thirty days from the receipt of request from one party to doso, or (ii) if the two appointed Arbitrators fail to agree on the third
Arbitrator within thirty days from the date of their appointment,
then the appointment shall be made by the Governing Body of
SAROD-Ports from the panel of Arbitrators maintained by SARODPorts.
Rule 13-Appointment of Substitute Arbitrator
In the event of the death or resignation of any of the Arbitrators or if the
Arbitrator withdraws from his office for any reason or by or pursuant toagreement of the parties, or if the Arbitrator becomes de jure or de facto
unable to perform his functions or for other reasons fail to act without any
undue delay, a substitute Arbitrator must be appointed by the sameprocedure as in Rule 11 by which the Arbitrator concerned was appointed,
failing which, the Governing Body will make the appointment.
Rule 14 - Independence and Impartiality of the Tribunal
14.1 The Tribunal conducting arbitration under these Rules shall be andremain at all times independent and impartial, and shall not act as advocate
for any party.
14.2 A prospective Arbitrator shall disclose to those who approach him in
9connection with his possible appointment, any circumstances likely to giverise to justifiable doubts as to his impartiality or independence.
14.3 An Arbitrator, from the time of his appointment and throughout
arbitral proceedings, shall without delay, disclose to the Secretary and theparties in writing circumstances referred in 14.2 unless they have alreadybeen informed of them by him.
Rule 15 - Code of Ethics for Arbitrators
An Arbitrator is a fountain of justice and emblem of equity, fairness
and good conscience. Therefore he/she is expected to exhibit a noble
conduct. The code of conduct prescribed by the Governing Body has to be
adopted.
Appointment
15.1 A prospective Arbitrator shall accept an appointment only if he isfully satisfied that he is able to discharge his duties without bias, he has anadequate knowledge of the language of the arbitration, and he is able to giveto the arbitration the time and attention which the parties are reasonably
entitled to expect,
15.2 In this code, the masculine includes the feminine.
Disclosure
15.3 A prospective Arbitrator shall disclose all facts or circumstances that
may give rise to justifiable doubts as to his impartiality or independence,such duty to continue thorough out the arbitral proceedings with regard to
new facts and circumstances, in terms of the Arbitration and Conciliation
Act, 1996 as amended from time to time.
15.4 A prospective Arbitrator shall disclose to the Secretary and any party
who approaches him for a possible appointment:(a)Any past or present close personal relationship or business
relationship, whether direct or indirect, with any party to thedispute, or any representative of a party, or any person known to bea potentially important witness in the arbitration;(b)

The extent of any prior knowledge he may have of the dispute.

Bias15.5 The criteria for assessing questions relating to bias are impartiality
and in dependence. Partiality arises when an Arbitrator favour one of theparties or where he is prejudiced in relation to the subject matter of the
dispute. Dependence arises from relationships between
anArbitrator
10and one of the parties,
parties.

or with someone closely connected with one of the

15.6 Any close personal relationship or current direct or indirect business
relationship between an Arbitrator and a party, or any representative of aparty, or with a person who is known to be a potentially important
witness, will normally give rise to justifiable doubts as to a prospective
Arbitrator's impartiality or independence. Past business relationships will
only give rise to justifiable doubts if they are of such magnitude or
nature as to be likely to affect a prospective Arbitrator's judgment. He
should decline to accept an appointment in such circumstances unlessthe parties agree in writing that he may proceed.
Communications
15.7 Before accepting an appointment, an Arbitrator may only enquire as
to the general nature of the dispute, the names of the parties and the
expected time period required for the arbitration.
15.8 No Arbitrator shall communicate with any of the parties or theirCounsel until after the Secretary gives notice of the formation of the
Tribunal to the parties.
15.9 Throughout the arbitral proceedings, an Arbitrator shall avoid any
unilateral communications regarding the case with any party, or it
srepresentatives.
Fees
15.10 In accepting an appointment, an Arbitrator agrees to the
remuneration as prescribed in the Schedule to the rules of SAROD-Ports,and he shall make no unilateral arrangements with any of the parties ortheir Counsel for any additional fees or expenses without the agreement of
all the parties and the consent of the Secretary of SAROD-Ports.
Conduct
15.11 Once the arbitration proceedings commence, the Arbitrator shallacquaint himself with all the facts and arguments presented and all
discussions relative to the proceedings so that he may properly understandthe dispute.
Confidentiality
15.12 The arbitration proceedings
shall remain confidential. An Arbitrator
is in a relationship of trust to the parties and should not, at any time, use
confidential information acquired during the course of the proceedings togain personal advantage or advantage for others, or to affect adversely theinterest of another.
1115.13 This Code is not intended to provide grounds for the setting aside of
any award.
Rule 16- Challenge of Arbitrators
16.1 An Arbitrator may be challenged if there are circumstances thatgive rise to justifiable doubts as to his impartiality or independence andalso if he or she has committed any misconduct.
16.2 An Arbitrator may also be challenged if he does not possess thequalifications required by the agreement of the parties.
16.3 A party may challenge an Arbitrator appointed on its nomination orwith its agreement only for reasons of which it becomes aware after theappointment has been made.
16.4 A party who intends to challenge an Arbitrator shall file with theSecretary and serve on the other party or all other parties,whichever isapplicable, a Notice of challenge.
16.5 The Notice of challenge must be filed and served within 14 days fromthe appointment of the Arbitrator or within 14 days after the circumstances
mentioned in Rule 15.1 became known to that party.
16.6 The Notice of challenge must state the reasons for the challenge.
16.7 The arbitration shall be suspended until the challenge is resolved or
decided upon.
16.8 When an Arbitrator has been challenged by one party, the other party
may agree to the challenge. The Arbitrator may also, after the challenge,
withdraw from his office. However, it is not implied in either case that there
has been an acceptance of the validity of the grounds for the challenge. In
both cases, the procedure provided in Rule 11 read with Rule 13, shall be
used for the appointment of a substitute Arbitrator.
Rule 17 - Decision on Challenge
17.1 If the other party does not agree to the challenge and the Arbitrator
does not withdraw, the decision on the challenge will be made by theGoverning Body.
17.2 If the Governing Body sustains the challenge, a substitute Arbitrator
shall be appointed or chosen pursuant to the procedure applicable to theappointment of an Arbitrator as provided in Rule 11 read with Rule 13. If
the Governing Body dismisses the challenge, the Arbitrator shall continue
with the arbitration.
Rule 18 - Removal of the Tribunal
1218.1 The Governing Body may on the application of a party remove an
Arbitrator:a.

Who is physically or mentally incapable of conducting theproceedings or where there are justifiable doubts as to his ability to doso; orb.

Who has refused or failed to use all reasonable dispatch inconducting the arbitration or making an award.

c.

Who has continuously absented from attending the proceedings
for more than three sittings without prior permission of the Presiding
Arbitrator/Governing Body of SAROD- Ports.
18.2 An Arbitrator may also be removed where complaints are received oron the Governing Body’s own initiative when it decides that the arbitrator isprevented de jure or de facto from the fulfilling the arbitrator’s functions, orthat the particular arbitrator is not fulfilling the functions in accordancewith the Rules or within the prescribed time limits.
18.3 Where applications or complaints are received against an Arbitrator
for removal, there shall be a committee consisting of at least three membersof the Governing Body to examine the same and make a recommendation to
the Governing Body within 10 days from the date of receipt of theapplication or complaint as to what appropriate action may be taken against
the concerned arbitrator.
18.4 The committee shall afford an opportunity of hearing to the
Arbitrator(s) concerned before making any recommendation in the matter.
18.5 The Governing Body, if deems fit may afford an opportunity of hearing
to the concerned arbitrator before taking a decision on the recommendationof the committee.
18.6 Upon the removal of the Arbitrator, a substitute Arbitrator shall be
appointed in accordance with Rule 11 read with Rule13.
18.7 The Governing Body's decision on the application is final and is not
subject to appeal or review.
Rule 19 - Re-hearing in the Event of Replacement of the Tribunal
19.1 Unless otherwise agreed by the parties, where an Arbitrator is
replaced under rule 18, any hearings previously held may be repeated at thediscretion of the Arbitral Tribunal.
19.2 Unless otherwise agreed by the parties, an order or ruling of thearbitral Tribunal made prior to the replacement of a Arbitrator under rule 18
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shall not be invalid solely because there has been a change in thecomposition of the Arbitral Tribunal.
Rule 20 - Jurisdiction of the Tribunal
20.1 The Tribunal shall have the power to rule on its own jurisdiction,
including any objection with respect to the existence, termination or validityof the arbitration agreement. For that purpose, an arbitration agreement
which forms part of a contract shall be treated as an agreement
independent of the other terms of the contract. A decision by the Tribunal
that the contract is null and void shall not entail ipso jure the invalidity of
the arbitration agreement.
20.2 The plea that the Tribunal does not have jurisdiction shall be raised
not later than in the Statement of Defence. A plea that the Tribunal isexceeding the scope of its authority shall be raised promptly after the
Tribunal has indicated its intention to decide on the matter alleged to be
beyond the scope of its authority. In either case the Tribunal may
nevertheless admit a late plea under this Rule if it considers the delay
justified. A party is not precluded from raising such a plea by the fact that
he has nominated, or participated in the appointment of an Arbitrator.
20.3 The Tribunal shall rule on an objection that it lacks jurisdiction as apreliminary question upon the objection being raised. It may rule on an
objection that it exceeds the scope of its authority either as a preliminary
question or in an award on the merits, as it deems just and convenient.
20.4 In addition to the jurisdiction to exercise the powers definedelsewhere in these Rules, the Tribunal shall have jurisdiction to determine
any question of law arising in the arbitration; proceed with thearbitration notwithstanding the failure or refusal of any party to comply
with these Rules or with the Tribunal's orders or directions, or to attend
any meeting or hearing, but only after giving that party written noticethat it intends to do so; and to receive and take into account such written
or oral evidence as it shall determine to be relevant, whether or not strictly
admissible in law.
20.5 The arbitral Tribunal shall decide on a plea referred to in 20.2 andwhere the arbitral Tribunal takes a decision rejecting the plea, continue withthe arbitral proceedings and make an arbitral award.
Rule 21 - Fees of SAROD-Ports and Arbitral Tribunal
Registration Fee (Non - Refundable): Rs.10,000/- (Ten thousand rupees)
or any amount fixed by Governing Body from time to time.
Arbitral Tribunal Fees
The Arbitral Tribunal fees and other miscellaneous expenses shall be
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as per the Schedule to these rules as decided by the Governing Body fromtime to time.
Rule 22- Transmission of File to the Tribunal
22.1 The Secretary shall, as soon as practicable transmit to the Tribunal, afile containing the Notice of Arbitration, the Response and all casestatements.
22.2 The Tribunal shall as soon as practicable, after consultation with theparties, issue such orders and/or directions as are necessary for the
conduct of the arbitration to conclusion, including a timetable for steps tobe taken in the arbitration and for the hearing of the arbitration.
Rule 23- Judicial Seat of Arbitration
23.1 Unless otherwise agreed by the parties, the judicial seat of arbitration
shall be New Delhi.
23.2 Notwithstanding Rule 23.1, the Tribunal may, unless otherwise agreed
by the parties, hold hearings and meetings anywhere convenient, subject tothe provisions of Rule28.2.
Rule 24 - Language of Arbitrationa. The language to be used in the arbitration shall be English.
b. If a party submits any document in any language other than English,

the party submitting such a document also has to submit before the
Tribunal a translation of the said document to the English language.
Rule 25 - Conduct of the Proceedings
The Tribunal shall have the widest discretion allowed by the Act to ensure
just, expeditious, economical and final determination of the dispute.
As far as practicable, the proceedings shall be conducted between 10 a.m.
to 5 p.m. with a recess of one hour.
Rule 26 - Communication between Parties and the Tribunal
26.1 Where the Tribunal sends any written communication to one party, it
shall send a copy to the other party or parties as the case maybe.
26.2 Where a party sends any written communication (including
Statements, expert reports or evidentiary documents) to the Tribunal, thesame shall be copied to the other party or ail other parties, whichever isapplicable, and show to the Tribunal that the same has been so copied.

15

26.3 The address of the parties for the purpose of all communications
during the proceedings shall be those set out in the Notice of Arbitration, or
as either party may at any time notify the Tribunal and the other party or
parties, whichever is applicable.
26.4 A copy of correspondence between the parties and the Tribunal shallbe sent to the Secretary.
Rule 27 – Party Representatives
Any party may be represented by legal practitioners or any otherrepresentatives, subject to such proof of authority as the Tribunal may
require. The names and addresses of such representatives must be notified
to the other party or parties.
Rule 28 – Hearings
28.1 Unless the parties have agreed on documents- only arbitration the
Tribunal shall hold a hearing for the presentation of evidence by witnesses,
including expert witnesses, or for or a submissions.
28.2 The Tribunal shall fix the date, time and place of any meetings andhearings in the arbitrations on the first hearing, and complete time table
pertaining to all the activities of the Arbitration e.g. submission of statementof claim, reply, counter claim, reply therein, admission and denial of
documents, visit/inspection of site if any. The Tribunal shall stick to thetime table without any deviations unless there are unavoidable
circumstances warranting such deviation which will be with the priorpermission of the Tribunal.
28.3 Prior to the hearing, the Tribunal may provide the Parties with mattersor questions to which it wishes them to give special consideration.
28.4 In the event that a party to the proceedings without sufficient cause,fails to appear at a hearing of which the notice has been given, the Tribunal
may proceed with the arbitration and may make the Award after the party
present has submitted evidence to prove its case.
28.5 All meetings and hearing shall be in private unless the parties agree
otherwise.
Rule 29 - Documents Only Arbitration
29.1 Parties, may, at any stage before the constitution of the Tribunal or atany stage thereafter but before the evidence stage, mutually agree in writing
to have their disputes resolved only through written pleadings, documents
and submissions filed by the parties and without an oral hearing.
29.2 Where the parties agree to dispense with oral hearing, the Tribunal
16

must be promptly informed by both the parties in writing as soon as
possible.
29.3 Parties may seek discovery of documents if they are not satisfied withexistence of documents annexed with statement of claim, reply and counterclaim by giving self-contained request to the Tribunal justifying thenecessity for such documents. Decision of Tribunal shall be final andbinding upon the parties.
29.4 The Tribunal shall have the power to call for any further information
or clarification from the parties in addition to the pleadings and documents
filed by them.

Rule 30 – Witnesses
30.1 The Tribunal may require each party to give notice of the names anddesignations of the witnesses it intends to call and reasons for legal
necessity of such witness.
30.2 No party shall call any expert witness without the leave of the
Tribunal.
30.3 Any witness who gives evidence may be questioned by eachparty or its representative subject to any rulings made by the Tribunals.
30.4 A Witness may be required by the Tribunal to testify under oath oraffirmation.
30.5 Subject to such order or direction which the Tribunal may make,the testimony of witness may be presented in written form, either as
signed statements or by duly sworn or affirmed affidavits.
30.6 Any party may require a witness to attend an oral examination at ahearing. If the witness fails to attend, the Tribunal may place such weighton the written testimony as it thinks fit, or may exclude it altogether,
30.7 The Tribunal shall determine the admissibility, relevance, materiality
and weight of the evidence given by any witness.
Rule 31- Experts Appointed by the Tribunal
31.1 Unless otherwise agreed by the parties, the Tribunal may:a.

appoint one or more experts to report the Tribunal on specificissues;b.

require a

party

to

give
17

any

such

expertany

relevantinformation or to produce, or to provide access to, any relevant
documents, goods or property for inspection by the expert.
31.2 An expert appointed under Rule 31.1 above shall submit a report inwriting to the Tribunal. Upon receipt of such written report, the Tribunal
shall deliver a copy of the report to each of the parties and invite the parties
to submit written comment on the report.
31.3 Rule 30.2 shall not apply to an assessor appointed by agreement ofthe
parties, or to an expert appointed by the Tribunal to advise solely in relation
to procedural matters.

Rule 32- Rules applicable to substance of dispute where the place ofarbitration is situated in India
In an arbitration, thearbitral
Tribunal
shall
decidethedispute submitted to arbitration in accordance with the substantive law for
the time being in force in India;
Rule 33 - Closure of Hearing
33.1 The Tribunal may inquire of the parties if they have any further proof
to offer or witnesses to behead or submission to make and, if there are none,
declare the hearing closed.
33.2 The Tribunal may also, in view of exceptional circumstance, reopen
the hearings at any time before the award is made.
Rule 34 - Additional Powers of the Tribunal
34.1 In addition to the powers conferred by the Act, the Tribunal shall also
have the power to:-a.

Allow any party, upon such terms of as to costs and otherwise)
as it shall determine, to amend claims or counterclaims;b.

Extend or abbreviate any time limits provided by theseRules;c.

Conduct such enquires as may appear
necessary or expedient;to the Tribunal to bed.

Order the parties to make any property or thing available forinspectione.

Order any parties to produce to the Tribunal, and to other18

parties for inspection, and to supply copies of any documents, orclasses of documents in their possession, custody, or power which the
Tribunal determines to relevant.

f.

Make orders or give directions to any party for interrogatories;g.

Make orders or give directions to any party for an interim
injunction or any other interim measure;h.

Make such orders or give such directions as it deems fit in so
far as they are not inconsistent with the Act or any statutory reenactment thereof or such law which is applicable or these Rules.
34.2 If the parties so agree, the Tribunal shall also have the power to add
other parties (with their consent) to be joined in the arbitration and make asingle Final Award determining all disputes between them.
Rule 35- Deposits of Costs and Expenses
35.1 The Arbitral Tribunal’s fees and SAROD-Ports administration fees
shall be ascertained in accordance with the schedule of fees in force at thetime of commencement of the arbitration.
35.2 The claimant shall deposit with SAROD-Ports half of the fees payable
by it for the arbitration at the time of filing of the statement of claim. The
respondent shall deposit with the SAROD-Ports the half of the fees payable
by it for the arbitration at the time of filing the Statement of respondent's
defence and counterclaim (if any). The balance fees payable shall be paid 60(Sixty) days before the date of the final hearing or on such other date as the
Secretary may direct.
35.3 Where the amount of the claim or the counterclaim is not quantifiable
at the time payment is due, the Secretary shall make a provisional estimate.
The fees will be adjusted in the light of such information as may
subsequently become available.
35.4 If the arbitration is settled or disposed of without a hearing, theamount of the Tribunal's fees and SAROD-Ports administration fees shall befinally determined by the Secretary who will have regard to all thecircumstances of the case, including the stage of proceedings at which thearbitration is settled or otherwise disposed of.
35.5 The Secretary may from time to time direct parties to make one ormore deposit(s) towards any further expenses incurred or to be incurred onbehalf of or for the benefit of the parties.
35.6 All deposit(s) shall be made to and held by the SAROD-PORTS. Anyinterest which may accrue on such deposit(s) shall be retained by the
SAROD-Ports.
19

35.7 If a party fails to make the payments or deposits required or directed,
the Tribunal may refuse to hear the claims or counterclaims, whichever isapplicable, by the non-complying party, and it may proceed to determine
claims or counterclaims by any party who has complied with orders.
35.8 The parties shall remain jointly and severally liable to the SARODPorts for payment of all such fees and expenses until they have been paid infull even if the arbitration is abandoned, suspended or concluded, byagreement or otherwise, before the final Award is made.
Rule 36 - Decision Making by the Tribunal
36.1 Where a Tribunal has been appointed, any direction, order, decision
or award of the Tribunal must be made by the whole Tribunal or a majority.
If an Arbitrator refuses or fails to sign the Award, the signatures of the
majority shall be sufficient, provided that the reason for the omitted
signature is stated.
36.2 If there is no unanimity, the same shall be made by the majority
Arbitrators as well as by the dissenting Arbitrator alone as if acting as a sole
Arbitrator.
36.3 However, in case of a three-member Tribunal the presiding Arbitrator
may after consulting the other Arbitrators, make procedural rulings alone.
Rule 37 - The Award
37.1 It will be mandatory for the parties to submit written synopsis of theirarguments respectively which will form part of the arbitral proceedings.
37.2 Unless the Secretary extends the time or the parties agree otherwise,
the Tribunal shall make its Award in writingwithin30 days from the date on
which the hearings are closed and shall state the reasons upon which its
award is based. The award shall contain the date and shall be signed by the
Arbitrator or Arbitrators.
37.3 The Tribunal may make interim awards or separate awards on
different issues at different times.
37.4 All Awards must be submitted by the Tribunal to the Secretary andthey shall be issued through the Secretary.
37.5 The Tribunal must deliver to the Secretary number of originals
the award sufficient for the parties and for filing with the Secretary.

of

37.6 The Secretary shall release the award to the parties only upon receipt
of sufficient deposits to cover the fees and expenses due to the Tribunal andto the SAROD- PORTS.
20

37.7 By agreeing to have arbitration under these Rules, the parties
undertake to carry out the award without delay.
37.8 Stamp duty on award shall be payable by the party in whose favor theaward has been pronounced.
Rule 38- Additional Award
38.1 Within 30 days after the receipt of the award, either party, with noticeto the Secretary and the other party may request the Tribunal to make an
additional award as to claims presented in the arbitral proceedings but
omitted from the award.
38.2 If the Tribunal considers the request for an additional award tobe justified and considers that the omission can be rectified
without
any further hearing or evidence, it shall notify all the parties within 7 daysof the receipt of the request, that it will make and additional award, andcomplete the additional award within 30 days after the receipt of therequest.
Rule 39 - Correction of Awards
39.1 Within 30 days of receiving an Award, unless another period of time
has been agreed upon by the parties, a party may by notice to the Secretary
and the other party request the Tribunal to correct in the Award, any errors
in computation, any clerical or typographical errors or any errors of similar
nature.
39.2 If the Tribunal considers the request to be justified, it shall make thecorrections within 30 days of receiving the request. Any correction shall be
notified in writing to the parties and shall become part of the Award.
39.3 The Tribunal may correct any error of the type referred to in Rule 39.1
on its own initiative within 30 days of the date of the Award.
Rule 40- Settlement40.1 If, the parties arrived at amicable settlement of the dispute during
the currency proceedings, the parties shall file memo of settlement before
the Tribunal who shall either issue an order for the termination of thearbitral proceedings or, if requested by both parties and accepted by the
Tribunal, record the settlement in the form of an arbitral award on agreed
terms. The Tribunal is not obliged to give reasons for such an award,
40.2 The Parties shall:a.

Notify the Tribunal
and the Secretary immediately if thearbitration is settled or otherwise terminated:21

b.

Make provision in any settlement for payment of all the costs of
the arbitration and fees and expenses due to the SAROD-PORTS andthe Tribunal.
40.3 If the continuation of the arbitral proceedings becomes unnecessary or
impossible for any reason not mentioned in Rule 38.1, before the award ismade, the Tribunal shall inform the parties of its intention to issue an orderfor the termination of the proceedings. The Tribunal shall have the power toissue such an order unless party raises justifiable grounds for objection.
40.4 Copies of the order for termination of the arbitral proceedings or of thearbitral award on agreed terms, signed by the Tribunal, shall be
communicated by the Tribunal to the parties through the Secretary.
Rule 41- Interest
The Tribunal may award interest on any sum awarded at such rate as
applicable in fixed deposits of the Nationalised Bank in India in respect ofsuch periods ending not later than the date of the award as the Tribunal
considers just.
Rule 42- Costs
42.1 The Tribunal shall have the discretion to determine whether costs arepayable by one party to another, the amount of such costs, and when suchcosts are to be paid.
42.2 The decision of the Tribunal under Rule 37 above shall be made inaccordance with the provisions of the Act, as amended from time to time.
42.3 The Tribunal has power to order in its Award, that all or part of thelegal or other costs (such as legal fees and expenses, costs incurred in
respect of party appointed experts etc.) of one party shall be paid by theother party.
Rule 43 – Waiver
A party which is aware of non-compliance with these Rules and yetproceeds with the arbitration without promptly stating its objection inwriting such non-compliance shall be deemed to have waived its right toobject.
Rule 44 - Exclusion of Liability
44.1 The Tribunal, the President, the SAROD-Ports and any of its officers,
employees or agents shall not be liable to any party for any act or omissionin connection with any arbitration conducted under these Rules.

2244.2 After the Award as been made and the possibilities of corrections andadditional Awards have lapsed or been exhausted, neither the Tribunal nor
the President shall be under any obligation to make any statement to any
person about any matter concerning the arbitration, and no party shall seek
to make any Arbitrator or the President or the SAROD-Ports and any of its
officers a witness in any legal proceedings arising out of the arbitration.
Rule 45- General Provisions
45.1 In all matters not expressly provided for in these Rules, the President,
the Secretary and the Tribunal shall act in the spirit of these Rules andshall make every reasonable effort to ensure the just, expeditious andeconomical conclusion of the arbitration.
45.2 If any of these Rules is in conflict with a mandatory provision of law
applicable to the arbitration or the arbitration agreement from which theparties cannot derogate, that mandatory provision shall prevail.
45.3 The Secretary may from time to time issue Practice Notes on theimplementation of these Rules.
Rule 46- Amendment to Rules
These Rules may from time to time be amended
Body of SAROD-Ports.

23

by the Governing

SCHEDULE
Fees and other miscellaneous expenses for the Arbitrator of SARODPorts
S. No.

Particulars of Amount payable per
Fees and misc. Arbitrator per caseexpenses
where total sum ofallclaimsorcounter-claims
in
the
case
beforeArbitral Tribunal is
up to Rs.100 Crore.

1.

Fee

2.

3.

i) Rs.25,000/- perdayii) 25% extra on fee
at (i) above in caseoffast-track
procedure as per
Section-29Bof
Arbitration&
Conciliation
Act,
1996;
or
10% extra on fee at(i) above if award is
published within 6months from date ofenteringthereference by Arbitral
Tribunal.
Alternatively,
theArbitrator may opt
for a lump-sum feeof Rs.5.00 lakh percaseincludingcounter-claims

Reading
Rs.25,000/per
Charges – One arbitrator per caseTime
includingcounter
claims.
One
time Rs.25,000/per
charges
for arbitrator per case.
24

Amount payable
perArbitrator
per case where
total sum of all
claimsorcounter-claims
in
the
case
beforeArbitral
Tribunalisabove
Rs.100crore and up to
Rs.500 Crorei)
Rs.40,000/per dayii) 10% extra on
fee at (i) above if
award
ispublished within
6 months fromdate of entering
the reference by
Arbitral
Tribunal;

Amount payable
perArbitration
per case where
total sum of all
claimsorcounter-claims
in
the
case
beforeArbitral
Tribunal is above
Rs.500 Crores

Alternatively, theArbitrator may
opt for a lumpsum
feeof
Rs.8.00 lakh percaseincludingcounter-claims

Alternatively, theArbitrator
may
opt for a lumpsum
feeof
Rs.10.00
lakh
per
case
includingcounter-claims
Rs.50,000/- perarbitrator
percaseincludingcounter claims.
Rs.25,000/- perarbitrator
per

Rs.40,000/- perarbitrator
percaseincludingcounter claims.
Rs.25,000/- perarbitrator
peri)Rs.50,000/per dayii) 10% extra on
fee at (i) above if
award
ispublished within
6 months from
the
date
of
enteringthereferenceby
Arbitral
Tribunal.

4.

5.
(i)
(ii)

6.
7.

Note

Secretarial
case.
case.
Assistance andincidental
charges(Telephone, fax,
postage etc.)
One-time
Rs.40,000/per Rs.50,000/- per Rs.60,000/- percharges
for arbitrator.
arbitrator.
arbitrator
publishing/declaration of
the Award
Other Expenses (As per actual against bills subject to ceiling given below)
Traveling
Economy Class (by Air), First Class AC (by Train) and AC
ExpensesCar (by Road @ 13/Km)
Lodging
and Rs.15,000/- per day (Metro Cities) or
Boarding
Rs.8,000/- per day (in other Cities) or
Rs.5,000/- per day, if any Arbitrator makes own
arrangement.
Local TravelRs.2,000/- per day
Extra Charges Rs.5,000/- per half-day for outstation Arbitrator.
for days otherthanmeetingdays(Maximum for
2
and
half
days)
1. Lodging, Boarding and Travelling expenses shall be allowed only for thearbitrator who is residing at least 100 Kms away from the venue of themeeting.
2. Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad shall beconsidered as Metro Cities.

25