In Brief
The Supreme Court held that arbitrators cannot unilaterally determine their own fees—doing so violates party autonomy and the principle that arbitrators cannot judge their own cause. Fees must be fixed at the inception through agreement between parties and arbitrators. The Court established directives for ad hoc arbitrations requiring preliminary hearings to fix fees via a tripartite Terms of Reference. The 'sum in dispute' under the Fourth Schedule refers to claims and counter-claims separately, each triggering separate fees. The ceiling of Rs 30,00,000 in Serial No. 6 applies to the total fee, not just the variable component. This ceiling applies per individual arbitrator, not collectively. When parties cannot agree, the Fourth Schedule becomes the binding default fee, which parties cannot challenge. The judgment creates a framework for transparent, consensual fee fixation to prevent disputes and minimize court intervention."
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