Costs

The costs of arbitration include arbitrator's fee, administrative and secretarial expense, expenses on travel of arbitrator and others concerned, stenographic, translation and interpretation charges, stamp duty on award, expenses of witnesses, cost of legal or technical advice and other incidental expenses arising out of or in connection with the arbitration proceeding or award.

The rules of arbitration of arbitral bodies generally contained detailed provisions regarding costs and expenses of arbitration and the fee payable to the arbitrator.

In non-institutional arbitrations, the fees were generally fixed in advance by arrangement with the arbitrator. He might refuse to pronounce the award if his fees were not paid. As to costs of arbitration, the arbitrator could direct by whom they should be payable. This was done in the award. If the award was silent, each party bore its own costs.

An arbitrator might fix his remuneration either at the time of his appointment or during the course of arbitration. The award which would contain an order as to costs and expenses of arbitration generally included the fees of the arbitrator. The arbitrator had a lien on the award for his fees and till it was paid he might refuse to deliver the award to the party. He could also apply to the court for an order for the payment of his fee. Any party who felt that the fee demanded by an arbitrator was excessive might apply to the court for determination of the fee. Before doing so, the fee demanded by the arbitrator had to be paid in court.

Under Section 31, unless otherwise agreed by the parties, the cost of an Arbitrator shall be fixed by the Arbitral Tribunal. The tribunal shall specify :

1. the party entitled to costs;

2. the party who shall pay the costs;

3. the amount of costs or method of determining that amount; and

4. the manner in which the costs shall be paid.