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| FAQs - Arbitration |
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What is Arbitration? |
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| Arbitration is a quasi judicial process of settlement of dispute between the trading members and clients, in respect of trades done on the Exchange. Arbitration aims at quicker legal resolution for the disputes. When one of the parties feels that the complaint has not been resolved satisfactory either by the other party or through the complaint resolution process of the Exchange, the parties may choose the route of arbitration. |
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Who can apply for arbitration? |
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| One of the parties to the dispute who wants legal remedy for remedy for resolving dispute could apply for arbitration. On other words clients, trading member can apply for arbitration. |
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Who are the persons and who can act as Arbitrators? |
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| The Exchange provides a list of eligible persons. Persons who form part of the list of Arbitrators are the ones who possess an expertise in their respective fields including banking, finance, legal (judges) and capital market areas (brokers). |
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Who can avail the facility of arbitration on the Exchange? |
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| The facility of arbitration on the Exchange can be availed by: |
- Investors who have dealt on the Exchange through its trading members and who possess a valid contract note issued by the trading member of the Exchange.
- Trading members who have a claim, dispute or difference with another trading member or a constituent.
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What are the different forms/documents required to be submitted while applying for arbitration? |
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Lists of documents that are required to be submitted are provided below.
Forms/Documents Purpose
Mandatory
- Form No. I: Application for arbitration
- Form No. II: For providing Arbitrator preference in descending order
- Statement of Case : Brief description of the case date wise, the basis of arriving at the claim amount and relief sought through arbitration
- Cheque/Pay Order/Demand Draft towards cost of arbitration
Additional Documents *
- Statement of accounts in case of dispute for funds
- Copies of the relevant contract notes & Bills relevant to the matter or as per the direction given by the arbitrator
* In case clients does not have additional documents at the time of making application, same may be submitted during the course of arbitration. |
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How do I obtain arbitration application forms, if I wish to apply for arbitration? |
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| Arbitration forms are available on Exchange website at http://www.mcxindia.com and applicant may download the same and use the form for making application. Alternatively, clients may request for forms by sending an email to grievance@mcxindia.com along with the complete postal address, so that the forms cab be mailed to them. |
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Where can client file arbitration against the trading member? |
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| The application for arbitration has to be filed at the Regional Arbitration Centre (RAC) viz. Mumbai, Delhi, Kolkata or Chennai covering the state in which in which the constituent ordinary resides. |
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What is the amount of arbitration fee to be deposited with the Exchange for filing an application for arbitration? |
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| Based on the claim amount, the trading member is required to furnish deposit to the Exchange whether they are an applicant or a respondent. |
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| No. |
Amount of claim |
Amount of Deposit |
| 1 |
Upto Rs.5,00,000/- |
Rs.8,000 |
| 2 |
Rs.5,00,001 to Rs.25,00,000/- |
Rs.10,000 |
| 3 |
Rs.25,00,000/- and above |
Rs.14,000 |
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| In case an investor (constituent of the trading member) is an applicant or respondent then he/she is required to furnish deposit to the Exchange based on the claim amount as under: |
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| No. |
Amount of claim |
Amount of Deposit |
| 1 |
Upto Rs.5,00,000/- |
Nil* |
| 2 |
Rs.5,00,000/- to Rs.25,00,000/- |
Rs.8,000 |
| 3 |
Rs.25,00,000/- and above |
Rs.14,000 |
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* Upto a claim of Rs 5 lakhs, the expenses for arbitration are borne by the Exchange on behalf of the constituent.
In case of counter claim and/or additional claim, the respective parties who make the counter claim and/or additional claim, as the case may be, shall deposit the additional amount as per the same fee structure mentioned above.
Besides the above-mentioned deposits, the Exchange may call for additional deposits if the deposits made are insufficient to cover the expenses of arbitration. The additional deposits will form a part of the deposits and shall be dealt with accordingly. |
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What are the other fees, charges, costs to be borne by the parties to the dispute? |
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| All fees and charges relating to the appointment of the arbitrator and conduct of arbitration proceedings shall be borne by the parties to the reference equally or in such proportions as may be decided by the Arbitrator. Such fees/charges are recovered from the deposits made while filing the arbitration application & balance amount, if any, is refunded to the parties. The costs, if any, to be awarded to either of the parties in addition to the fees and charges that have to be borne by the parties for conducting the arbitration, shall be decided by the Arbitrator. Unless the arbitrator directs otherwise, each party shall bear their own expenses of traveling and other incidental expenses incurred. |
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What is the limitation period for filing an application for arbitration in the event of there being a claim, difference or dispute? |
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| An application for arbitration has to be filed within 1 (one) year from last transactions or delivery or payment. |
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How is an Arbitrator appointed? |
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| If the value of claim made by the Applicant or counter claim made by the other party is less than or equal to 10 lakh, sole Arbitrator is appointed. If the value is more than Rs. 10 lakh, panel of three Arbitrator constituted. |
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Can a party request for a hearing in case the claim difference or dispute is a small amount? |
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| No hearing is afforded to the parties to the dispute if the value of the claim difference or dispute is Rs.One lahh or less. However, if the value of claim, difference or dispute is more than Rs.One lakh, the arbitrator shall offer to hear the parties to the dispute unless both parties waive their rights for such hearing in writing. |
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Can the Sole Arbitrator or Panel of Arbitrators grant an adjournment of hearing ? |
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| Yes, if either of the parties want an adjournment of hearing, they should make an application in writing to the Exchange giving reasons for seeking adjournment to the Exchange in advance to enable the Exchange to forward such request to the arbitrator. The arbitrator at his/her discretion may grant the adjournment subject to such conditions as deemed fit by him/her. |
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Can the Award be given on a agreed terms ? |
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| Yes, if after the appointment of an arbitrator, the parties settle the dispute amicably then the arbitrator will record the settlement of the dispute in the form of an arbitration award on agreed terms. |
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How is an award made by the Sole Arbitrator / Panel of Arbitrators? |
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| An Award shall be given in writing and made in three originals duly dated and signed by the Sole Arbitrator or in case of a Panel of Arbitrators by all the three arbitrators. |
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Can the parties to the dispute request for interest on the claim amount? |
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| The arbitrator may include interest on the claim amount for which the award is made at a particular rate of interest and period as the arbitrator deems reasonable. |
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Is there any appeal provision for arbitration at the Exchange? |
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| No. However, a party to the reference who is dissatisfied with an award of the arbitration may challenge the same before the competent court of jurisdiction as provided in the Arbitration Act. However party to the reference shall have to deposit the amount of award with the Exchange before filing the appeal and such amount shall be kept with the Exchange in abeyance and shall be disposed of eventually as per the direction of court. |
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When does the Award become a decree ? |
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| The award becomes a decree when the time for making an application to set aside the award has expired i.e. after expiry of 3 months from the date of receipt of award or the application for setting aside the Award having been made, has been refused by the appropriate court. In such a case the award shall be enforced as if it were a decree of the Court under the provisions of the Arbitration and Conciliation Act 1996. |
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For Latest commodity futures prices, SMS “MCX
<space> <Commodity
Name>“ to 58888 |
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