The rules may be called "Rules of Arbitration of the Indian Oilseeds & Produce Exporters Association".

 

dispute/difference which may arise between them in respect of the contract between them shall be referred to the arbitration under the Rules of Arbitration of the Indian Oilseeds & Produce Exporters Association.

In these rules, the following words have the following meanings unless the contracts otherwise requires.

"The Association" means the Indian Oilseeds & Produce Exporters Association, Mumbai.
 

"Arbitral Tribunal" means an arbitrator or arbitrators appointed for determining a particular dispute/difference.
 

"Board" means Board of Directors of the Indian Oilseeds & Produce Exporters Association, Mumbai.
 

"The Chairman" means the Chairman and/or the Vice-Chairman of the Association.

"Internal Commercial Arbitration" means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is :

an individual who is a national of or habitually resident in any country other than India; or  

a body corporate which is incorporated in any country other than India or

a company or an Association or a body of individuals whose central management and control is exercised in any country other than India or 

the Government of a foreign country.
 

"Member" means a Member of the Association, whether ordinary or associate.
 
 

"Party" means a party to an arbitration agreement and it shall include any individual, firm, company, Government, Government Organisation or Government Undertaking, Cooperative society, body corporate, and association of persons whether incorporated or not.
 
 

"Panel" means the Panel of Arbitrators maintained by the Indian Oilseeds & Produce Exporters Association.
 

"Registrar" means the Secretary and / Assistance Secretary or any other person designated as Registrar for carrying out the duties of Registrar under these Rules.
 

"Rules" means the Rules of Arbitration of the Indian Oilseeds & Produce Exporters Association.
 

Words importing the singular number include, where the context admits or requires, the plural number and vice versa.
 

The expression and terms defined in the Arbitration and Conciliation Act 1996 as amended from time to time but not defined here will have the same meaning and effect as per the respective definitions in the said Act.
 

Any dispute relating to any commercial matter arising out of any contract between two or more parties in India or a party or parties in India and a party or parties in a foreign country who agree or have agreed for arbitration by the Indian Oilseeds & Produce Exporters Association or under the rules of arbitration of the Indian Oilseeds & Produce Exporters Association shall be determined and settled in accordance with these Rules. 
 

The arbitration proceedings shall be held in India at such place or places as may be determined by the Association. 
 

Each party engaging in an arbitration pursuant to these rules whether or not a member of the Association is deemed to have agreed to abide by these rules. 
 

Neither party to the contract nor any person claiming under either or them, shall not bring any action or other legal proceedings against the other party in respect of any claim, dispute or difference arising out of all in relation to the contract until it has first been referred to and determined by arbitration under these Rules. 
 

Indian Oilseeds & Produce Exporters Association shall also be competent to administer the conduct of arbitration any dispute or difference relating to a commercial transaction between parties as mentioned in sub-clause (a) where they have agreed to have their dispute arbitrated under any other Rules of Arbitration or otherwise and have agreed to have such arbitration administered by the Indian Oilseeds & Produce Exporters Association wholly or in respect of some matter arising out of such arbitration.

Whether the parties have provided or agreed for arbitration by the Indian Oilseeds & Produce Exporters Association or for arbitration and the rules or Arbitration of the Indian Oilseeds & Produce Exporters Association, these rules or any amendment thereof in the form of obtaining at the time the dispute is referred to arbitration of the Indian Oilseeds & Produce Exporters Association, shall apply.

If one or both of the parties to a dispute which is referred to arbitration by the Indian Oilseeds & Produce Exporters Association belong to a country or countries other than India, in the absence of an agreement by the parties on the substantive law to be applied, it will be applied, it will be determined by the arbitrators appointed under these rules. The procedural law shall be the laws of India and parties shall be deemed to have submitted to the jurisdiction of the Courts in India.

The Board of Directors of the Association shall appoint a Panel of Arbitrators of not more than 18 persons, from amongst the persons who are members, Partners, Directors or duly authorized representatives of the members of Indian Oilseeds & Produce Exporters Association and it shall have authority to make such changes in the Panel as it deems fit from time to time.

The Registrar shall prepare and maintain an up-to-date Panel of Arbitrators.
The parties to a dispute or the Registrar where he appoints the arbitrator may choose any person from the Panel with reference to any dispute. However the parties shall have liberty to choose any person other than the persons on the panel as arbitrator provided such person is a member of the Association.
The names in the Panel of Arbitrators shall be open to inspection by all the persons with the permission of the Registrar.

receive applications for arbitration, reference and communications addressed by the parties before or during the course of arbitration or otherwise, in relation thereto;
 

receive payment of fees, deposits, costs, charges and other expenses.
 

appoint in consultation with the Chairman of the Association and in his absence in consultation with the person who is discharging the functions of the Chairman, an Arbitrator or Arbitrators as hereinafter provided.
 

give the necessary notice of hearings and communication to the parties the orders, directions, decisions and awards of Arbitral Tribunal.
 

keep a register of applications, and of awards.
 

Generally do all such things and take all such steps as may be necessary to assist the Arbitral Tribunal in execution of its functions.
 

The Registrar may delegate to any officer of the Association to discharge such of the functions and administrative duties of the Registrar as are deemed proper and necessary from time to time with reference to a particular case or cases.
 

Any party wishing to commence arbitration proceedings under these rules (claimant) shall submit to the Registrar a written request (application) for arbitration which shall include or be accompanied by:

The name and addresses of the parties to the dispute.
 

Statement of claim and facts supporting the claim, points at issue and relief or remedies sought with other details of the claimant's case.
 

Original or certified true Photostat copies of Arbitration agreement any contract or agreement out of or in connection with which the dispute has arisen and such other documents and information relevant or relied upon.
 

Registration for of Rs.1,000/- or such higher fee as may be stipulated by the Association.
 

The Arbitration shall be deemed to have commenced on the day the application for Arbitration, registration fee and Statement of claim are received by the Registrar. 

If the claim is not supported by certificate/s of contractual analysis the party initiating arbitration shall dispatch the notice of claim to the other party within 21 consecutive days from the date of delivery of the goods and shall at the same time notify the Association and dispatch sealed same to the Association where such sample shall be held at the disposal of the Arbitral Tribunal . Notwithstanding the above if the claimant requires a supporting analysis then a further sample shall be sent to the analyst within 21 consecutive days from the date of delivery of the goods.
 

If the claim is to be supported by certificate of contractual analysis the notice under rule 10 (a) (i) shall be dispatched and the Association be notified within 14 consecutive days from the date of final analysis certificate.
 

On receipt of application of Arbitration and statement of claim, etc. in respect of claims on quality the Registrar will immediately send to the other party a copy of the statement of claim and attached documents and ask such other party to furnish within 7 days or within any extended date a defence statement setting out his case accompanied by all documents in support of or having a bearing on the subject.
 

Claims other than on quality and/or condition for goods sold: For non-delivery or for delays in delivery or for non payment for goods sold claims other than on quality and/or condition the claimants initiating Arbitration shall send the notice of claims to the other party within 6 months from the contracted date of delivery/or contracted date for payment for goods sold, to the other party and shall simultaneously notify the Association along with application for Arbitration and pay the registration fee to the Association.

The Registrar shall on receipt of application of Arbitration, statement of claim and on receipt of registration fee, shall immediately send to the other party a copy of the statement of claim and attached documents and ask such other party to furnish within 21 days or within such extended date of defense statement setting out his case accompanied by all documents in support or having a bearing on the subject. 
 

Any communications sent by the Registrar under the registered post or under any recorded delivery to the Respondent on the address appearing in the Arbitration Agreement/ the contract between the parties as per the information supplied to the Association will be deemed to be duly served on the Respondent. If it is delivered to the addressee personally or at his place of business, habitual residence or mailing address last known even if the Respondent refuses to accept the said communication or if it is returned to the Association by the postal authorities as unclaimed by the said party.

The Registrar may proceed further with the arbitration proceedings as per rules as if communications had been duly served on the concerned parties. The Registrar may in such cases make an additional communication to the parties by Registered letter or by other means such as Email/Fax etc. which may provide a record of attempts to deliver it.

Any notice received after 1600 hrs on business, business day shall be deemed to have been received on the following business day. All business days shall be deemed to end at 1600 hrs Mondays to Fridays inclusive.
 

Counter claim and reply to counter claim: 

The respondent may make a counter claim against the claimant provided the counter claim arises under the same transaction as the original claim. He must submit the counter claim with full details supported by all documents and information within the period laid down for defense statement to the claim and the claimant may within 15 days of the notification of the counter claim or within such extended time submit a statement in reply to counter claim. The Arbitral Tribunal appointed to adjudicate upon the original claim shall also adjudicate upon the counter claim.

Copy of the reply of the claimant to the counter claim and all appended documents, if any, shall be sent to the Respondent for information.
 

Constitution of Arbitral Tribunal

On receipt of the application for arbitration, the Registrar shall take necessary steps to have the Arbitral Tribunal constituted for the adjudication of the dispute or difference as provided hereunder.
 

The number of Arbitrators to hear a dispute shall be determined as under:

Where the claim does not exceed Rs.50 lakhs and where the arbitration agreement does not specify three or more arbitrators, the reference shall be deemed to be to a sole arbitrator, unless parties to the dispute agree to refer the dispute to three arbitrators within 15 days from the date of notification of request for arbitration.

Where three arbitrators have to be appointed as per the above sub rule and any of the parties to the dispute fails to make the necessary deposits towards the cost and expenses of arbitration, the Registrar may instead of three arbitrators, appoint a sole arbitrator irrespective of the value of the claim.
 

The appointment of Sole Arbitrator or three arbitrators shall be made in the following manner.

In case a sole arbitrator has to be appointed, the Registrar shall by a notice in writing call upon the parties to forward the name of an agreed arbitrator of their choice either from among the panel of arbitrators of the Association or from among the members of the Association within a period which will not be less than 10 days from the date of receipt of the said notice. If the parties fail to agree on the person to be appointed as Sole Arbitrator within the time granted by the Registrar, the Registrar shall in consultation with Chairman of the Association or in his absence in consultation with the person who is discharging the function of the Chairman, appoint the Sole Arbitrator from among the panel of arbitrators of the Association.

The sole arbitrator so nominated shall constitute the Arbitral tribunal to hear the dispute and shall be appointed as such in writing by the Registrar. The Registrar shall give notice to the parties of constitution of the Arbitral Tribunal.
 

Where the reference is to three arbitrators the Registrar shall in the first instance can upon the parties to nominate one arbitrator each either from among the panel of arbitrators or from among the members of the Association by a notice in writing sent to them. The said notice shall specify the period within which the nomination shall be made which shall not be less than 10 days from the date of receipt of the said notice. If a part to the dispute refuses or neglects to appoint an arbitrator of his choice within the period specified or any extended period or if he requests the Registrar to nominate an arbitrator on his behalf, the Registrar in consultation with the Chairman of the Association and in his absence in consultation with the person who is discharging the functions of the Chairman, shall appoint the arbitrator from among the panel of arbitrators on behalf of that party. The arbitrators so nominated or appointed shall nominate the third arbitrator either from among the panel of arbitrators or from among the members of the association who shall act as the presiding arbitrator and if the two nominated/appointed arbitrators fail to agree on a third arbitrator within 10 days from the date of their appointment, the Registrar in consultation with the Chairman of the Association or in his absence in consultation with the person who is discharging the function of the Chairman, appoint the third arbitrator from among the panel of Arbitrators and the said three arbitrators shall constitute the Arbitral Tribunal and shall be appointed as such in writing by the Registrar. The Registrar shall give notice of the constitution of the Arbitral Tribunal.
 

The parties will obtain the consent from persons nominated by them as arbitrator and intimate the Association accordingly. The Registrar will obtain the consent from person nominated by him.
 

No person shall be eligible to act as an arbitrator, if he or his relative or a firm in which he/his relative is a partner or a private company in which he/his relative is either a director or member, or a public company in which he and/or his relative is a director or member holding not less than 5% of total shares issued and paid up, has any financial or personal interest in the transaction or dispute referred for arbitration. For the purpose if this rule relative means relative as defined under Companies Act, 1956.

No person shall be eligible to proceed as an Arbitrator who is already proceeding as an arbitrator five disputes / references at the time of selection.
 

Before accepting his nomination the prospective arbitrator shall disclose any circumstances such as financial or personal interest in the result of arbitration likely to disqualify him as an impartial or independent arbitrator. He shall also disclose if he is already appointed as arbitrator in five or a more references/disputes before acceptance. Upon receipt of such information, the Registrar shall disclose it to the parties, who if willing to proceed under the circumstances disclosed shall advise the Registrar accordingly. If either party declines to waive the presumptive disqualification, the prospective arbitrator shall be disqualified from acting as arbitrator in that arbitration and the vacancy so created shall be filled, in accordance with the applicable provisions of these Rules.
 

Any party shall have the right to challenge the appointment of an arbitrator on receipt of the notice of his appointment for reasons which disqualify him as an impartial or independent arbitrator. The challenge of an arbitrator shall be made within 15 days of his becoming aware of the reasons for which the challenge is made. Copies of communication of challenge shall be sent to the other parties and the arbitrator. The Board shall be the sole judge of the grounds of challenge and its decision shall be final and binding.
 

If any appointed arbitrator resigns or dies or becomes incapable of acting or neglects or fails to act expeditiously, prior to or during the arbitration bearings, or if he fails to make the award within the prescribed time and the Parties do not agreed to extend the time for making the award, the Registrar in consultation with the Arbitration Committee may terminate the authority of such an appointed arbitrator and inform him accordingly.
 

In case of the resignation or death or termination of authority of an appointed arbitrator under Sub-Rule (a) above, a new arbitrator will be appointed in his place by the Registrar in case he had appointed the original arbitrator. Where the appointment was made by the Parties, the Registrar shall call upon the Party who had appointed the arbitrator to nominate another arbitrator in his place. If any Party refuses or neglects to nominate an arbitrator within 10 days of the date of notice requiring him to nominate the arbitrator or within such extended time, the Registrar shall nominate the arbitrator on behalf of that Party from among the Panel of Arbitrators.
 

The arbitrator(s) appointed as above will be informed about the reconstitution of the arbitral tribunal and the reconstituted arbitral tribunal shall make the award expeditiously within the time prescribed under Rule 49 from the date when the reconstituted arbitral tribunal enters on the reference. The reconstituted arbitral tribunal shall proceed with the arbitration with the liberty to act on the record of evidence and proceedings as then existing or to commence the proceedings de novo.

The Registrar may require the Parties before passing the case on to the arbitrators under Rule 28, to deposit in advance in one or more installments such sums of money as he deems necessary to defray expenses of the arbitration including the administrative charges and arbitrator's fee. As a general rule, the deposits shall be called for in equal shares from the Claimant(s) and the Respondent(s). The arbitral tribunal may during the course of the arbitration proceedings or in the arbitration award, require further sums to be deposited by the Parties or anyone of them to meet the expenses of the arbitration. When one of the parties neglects or refuses to make the deposit, the Registrar or the arbitral tribunal as the case may be may require such deposit whether in relation to a claim or a counter-claim to be made by the other Party to the dispute (Claimant or Respondent as the case may be). Should the whole or part of the deposit be not made by the Parties or any one of them, the Registrar shall inform the Parties or the Party concerned that the claim or counter-claim, as the case may be, will not be the subject matter of the reference. The arbitral tribunal shall proceed only in respect of those claims or counter-claims for which the deposits have been duly paid to the Indian Oilseeds & Produce Exporters Association and otherwise may order the suspension or termination of the arbitral proceedings.

The deposit made shall be taken into account by the arbitral tribunal in apportioning the cost while making the award. Any deposit made in excess shall be refunded to such of the parties as the arbitral tribunal may direct.
 

The arbitral tribunal shall be entitled to allow fees and expenses of witnesses, expenses connected with the selection and carriage of sample and examination of goods. Licensed Measure's Department charges, conveyance, hire, cost of legal or technical advice or proceedings in respect of any matter arising out of the arbitration incurred by the arbitral tribunal, and any other incidental expenses and charges in connection with or arising out of the reference or award as the arbitral tribunal shall, in its absolute discretion, think fit.
 

The costs of the reference and the award including charges, fees and other expenses shall be in the discretion of the arbitral tribunal, which may direct to and by whom, and in what proportion, such charges, fees and other expenses and any part thereof shall be borne and paid, and may fix and settle the amount of costs to be so paid or any part thereof. In the event, any administrative fees and expenses are due to the Indian Oilseeds & Produce Exporters Association.
 

The fees, costs and expenses incidental to the reference and the award shall include the following :-
 

Registration Fee :
A registration fee of Rs.1,000/- or such higher amount as may be stipulated shall be paid along with the application for reference. The registration fee will not be refunded and becomes the property of the Indian Oilseeds & Produce Exporters Association.
 

Arbitrators' Fee and Administrative Fee :
The Arbitrators' fee for each arbitrator and the Administrative fee of the Indian Oilseeds & Produce Exporters Association will be fixed separately by the Board with regard to the amount in dispute in each case. The existing tables of applicable fees are given in Annexure: A and Annexure: B respectively to these Rules.
 

The Indian Oilseeds & Produce Exporters Association will be entitled to receive a Special Fee of Rs.300/- per hearing or such higher fee as may be prescribed by the Association for providing facilities of hearing rooms, for arbitration hearings and secretarial assistance etc. at the arbitration hearing.
 

Notwithstanding the provisions in Sub-Rule (2) of this Rule, the Chairman of the Association may prescribe the Arbitrators' fee and the Administrative Fee of the Indian Oilseeds & Produce Exporters Association at a figure higher than those prescribed in the said Sub-Rule, if in the exceptional circumstances of the case this appears to be necessary.
 

Where the sum under dispute is not stated in arbitration proceedings and where the relief claimed is other than a money claim viz a declaratory claim,, the Registrar and the Arbitral Tribunal under Rule 21, may require such deposits as may be deemed necessary to be paid by such of the parties as may be required subject to later adjustment.
 

The amount of interest wherever specified will be included in the claim amount for the purpose of calculation of Arbitrators and administrative fee. Further, claims and counter-claims referred for arbitration shall be taken into consideration separately for the purpose of calculation of Arbitrators and administrative fees under Sub Rule 24 (2).
 

The Registrar shall send copies of all papers relating to arbitration such as claim statement, defence statement, counter-claims, reply, statements, or other documents received from the parties to the dispute to the Arbitrator / Arbitrators constituting the Arbitral Tribunal under Rule 14 with a request to proceed with the arbitration and the arbitral tribunal shall be deemed to have entered on the reference on the day on which applications, defence statement, counter-claims, replies, documents etc. have been dispatched to the Arbitrator/Arbitrators. Intimation shall be given to the Parties of the day on which the Bench is deemed to have entered on the reference.

If the Claimant does not file all the requisite documents, papers etc. or does not deposit the appropriate Fees as per the Rules after having been given due opportunity for the purpose by the Registrar or the arbitral tribunal, the Registrar or the arbitral tribunal may dismiss / close the case on file for lack of perusal by the Claimant.

Similarly, if the Respondent fails to produce any requisite documents, papers including the statement of defence or information or fails to deposit administrative fees, or arbitrator's etc. after having been given due opportunity for the purpose by the Registrar or the arbitral tribunal, the Registrar or the arbitral tribunal may proceed further with the arbitration proceedings as per the Rules, notwithstanding such failure or refusal by the Respondent.
 

All applications which the parties desire to make to the arbitral tribunal and all notices to be given to the parties before or during the course of arbitration or otherwise in relation thereto shall be made through and sent by the Registrar who shall communicate the orders and directions of the Arbitral Tribunal thereon to the parties.
 

Place of Arbitration :
The place or venue of arbitration shall be in Mumbai. The Arbitration proceedings shall be held at such place or places in Mumbai as the Arbitral Tribunal may determine having regard to the convenience of the arbitrators 
and the parties.
 

Fast Track Arbitration :
The parties may opt out for Fast Track Arbitration and request the arbitral tribunal, before the commencement of the arbitration proceedings, to decide the reference in a fixed time frame of 3 to 6 months or any other time frame agreed between the parties, according to the Fast Tract Arbitration procedure, as under :
 

The arbitral tribunal will be authorized to decide the dispute on the written pleadings, documents and written submissions only filed by the parties without any oral hearings.
 

The arbitral tribunal shall have power to call for any further information / clarification from the parties in addition to the pleading and documents field by them.
 

An oral hearing may be held if both the parties make a joint request or if the arbitral tribunal considers an oral hearing necessary in any particular case.
 

If an oral hearing is held, the arbitral tribunal may dispense with any technical formalities and adopt such procedure, as it deems appropriate and necessary for economic and expeditious disposal of the case.
 

At a hearing, a party shall be entitled to appear by counsel, attorney, advocate or a duly authorized adviser or representative or personally. However, where the dispute is purely of a commercial nature, the parties shall have no right to be represented by lawyers except where, having regard to the nature or complexity of the dispute, the arbitral tribunal considers it necessary in the interest of justice that the parties should be allowed to be represented by counsel, attorney or advocate.
 

The arbitral tribunal may proceed with the reference notwithstanding any failure by a party to comply with any of the directions of the arbitral tribunal and may also proceed with the arbitral proceedings in the absence of any or both the parties who fail to neglect to attend at the time and place appointed by the arbitral tribunal in spite of due notice.
 

The parties shall do all acts necessary to enable the arbitral to make an award expeditiously and shall not do or cause or allow to be done any act which will delay the proceedings or prevent arbitral tribunal from making an award expeditiously, and if any party does cause or allow to be done any such act, that party shall pay such costs as the arbitral tribunal deems reasonable.
 

The arbitration session will go on as far as possible on a day-to-day basis from 10.30 a.m. to 4.30 p.m. once the hearing begins after completion of all the formalities. The arbitral tribunal shall not ordinarily adjourn a hearing at the request of any party, except where the circumstances are beyond the control of the party and the arbitral tribunal is satisfied that reasons and circumstances for the adjournment are justified. While granting an adjournment, the arbitral tribunal may make such orders regarding payment of costs by one or both of the parties, as it deems fit and reasonable.
 

If the parties have agreed to submit their case to arbitration under these Rules and any party refuses or fails to take part in the arbitration proceedings, the arbitral tribunal may proceed with the arbitration notwithstanding such refusal or absence.
 

The arbitral tribunal may at its discretion at any time or times before making the final award and at the expense of the parties concerned, consult any person having special knowledge relating to the particular industry, commodity, produce or branch of trade concerned in the reference or any expert or qualified accountant and may also at the like expenses of the parties, consult solicitors, counsel or advocates upon any technical question of law, evidence, practice or procedure arising in the course of the reference. If the parties agree, the arbitral tribunal may, at the expense of the parties, appoint any expert, accountant, or lawyers to sit with as an assessor and take into account the advice of such assessor.
 

The parties to the reference and any witness on their behalf shall, subject to the provisions of any law for the time being in force :
 

submit to be examined by the arbitral tribunal on oath or affirmation in relation to the matters in dispute.
 

produce before the arbitral tribunal all books, deeds, papers, accounts, writings and documents in their possession or power respectively which may be required or called for all the arbitral tribunal.
 

comply with the requirements of the arbitral tribunal as to the production or selection of samples, and
 

The arbitral tribunal will consider, as far as possible, to receive the evidence of witnesses by affidavit provided that the witness whose affidavit is admitted in evidence is made available for cross-examination at the request of the opposite Party.

The Arbitral Tribunal may
 

administer oath or affirmation to the parties or witnesses appearing and giving evidence;
 

state a special case for the opinion of the Court or give its award in the form of special case for the opinion of the Court;