All India Bar Examination (AIBE) 3-III Previous Year Question Papers with Answers

The least accurate statement about an arbitration agreement in India is:

D: The arbitration agreement must state who the members of the arbitral tribunal shall be.

Explanation:

A. The statement that the arbitration agreement must contemplate that the arbitral tribunal's decision will be binding on its parties is accurate. One of the fundamental principles of arbitration is that the parties agree to be bound by the decision of the arbitral tribunal.

B. The statement that the arbitration agreement must contemplate that the arbitral tribunal will determine the substantive rights of the parties is accurate. Arbitration is a method for resolving disputes, and the tribunal's role is to make determinations on the substantive issues in dispute.

C. The statement that the existence of an arbitration agreement is necessary for a valid arbitration is accurate. An arbitration cannot take place without a valid agreement between the parties to submit their disputes to arbitration.

E. The statement that the arbitration agreement should be valid under the Indian Contract Act, 1872, is accurate. In India, as in many other jurisdictions, arbitration agreements are subject to contract law, and they must meet the requirements of a valid contract under the Indian Contract Act, 1872.

However, statement D is not entirely accurate. While it is common for arbitration agreements to specify the method for appointing arbitrators or the number of arbitrators, Indian law does not require that the arbitration agreement must state who the members of the arbitral tribunal shall be. In fact, the appointment of arbitrators can be governed by the rules agreed upon by the parties or, in the absence of such agreement, by the provisions of the Arbitration and Conciliation Act, 1996. Therefore, statement D is the least accurate of the options provided.