SC snubs retd Judges for charging heavy fee in arbitration cases

The Supreme Court has disapproved retired Judges charging
exorbitant fees in arbitration cases. A Bench comprising Justices R. V.
Raveendran and H. L. Dattu, while dismissing the appeal of the Centre
challenging a Delhi High Court order appointing a retired Judge of a High
Court as sole arbitrator in a dispute between the Railways and a contractor.
Institutional arbitration has provided a solution as the arbitrators fees is
not fixed by the arbitrator themselves on a case to case basis but is governed
by a uniform rate prescribed by the institution under whose aegis the
arbitration is held.

Another solution is for the court to fix the fees at the
time of appointing arbitrator, with the consent of parties, if necessary in
consultation with the arbitrators concerned.

What is found to be objectionable is parties being forced
to go to an arbitrator appointed by the court and then being forced to agree
for a fee fixed by such arbitrator, the Bench said.

(Source : Media Reports & Internet, dated 11.05.2009)

(Compiler’s Note : Arbitration proceedings have become
as costly and time-consuming as the main litigation. After getting an Award,
there is another round of litigation to get it enforced !)