J&K High Court Resolves Arbitrator Fee Stalemate, Directs Centre To Deposit Fee As Per 4th Schedule Arbitration Act

The Jammu and Kashmir High Court has ruled that an arbitrator's fee must be fixed in accordance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996, and cannot be unilaterally determined by the arbitrator. The court emphasized that the arbitrator's fee is not a matter of negotiation after their appointment. The judgment states that the fee structure provided in the Act is intended to bring uniformity and to prevent arbitrators from charging excessive fees. The High Court clarified that if the parties have not agreed to a specific fee schedule beforehand, the fees must adhere to the model fees laid down in the Act. This ruling is a significant step towards regulating the costs of arbitration and making the dispute resolution process more transparent and affordable for the litigants.