Arbitrators can't decide their fees without consulting parties, says SC

The Supreme Court on Tuesday said arbitrators cannot decide their fees without consulting the parties in the arbitration proceedings. 

The Court said the 4th schedule, which lays down the fees of arbitrators, of the Arbitration and Conciliation Act 1996(the Act) is not binding on the parties.

“It is open to parties by their agreement to specify the fees payable to the arbitrator(s),” the court said. 

The bench comprising Justices DY Chandrachud, Sanjiv Khanna, and Surya Kant had reserved the judgment in the matter on May 11, 2022. The issue was if the fee scale for arbitrators under the Act was