In Brief
NHAI and Gayatri Jhansi Roadways Limited had a 2006 contract with an agreed fee structure for arbitrators. When a dispute arose in 2017, NHAI invoked arbitration. The Arbitral Tribunal applied the Fourth Schedule of the Arbitration Act (2015 Amendment) rather than the agreed contractual fees. NHAI challenged this via Section 14 application for removal of arbitrators. The High Court allowed the application, but the Supreme Court reversed it. Held: When parties have agreed upon an arbitrator fee structure in their contract, that agreed schedule (as updated by subsequent policy circulars) governs, not the statutory Fourth Schedule. The deletion of \"unless otherwise agreed\" in the 2015 Amendment applies to costs in awards, not arbitrator fees. An arbitrator following a High Court's legal interpretation does not become disqualified from office."
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