INTRODUCTION
Arbitration is a process in which a dispute between parties is settled by a third person. A person who is appointed by the parties involved to settle disputes between them is called an arbitrator Under Land Revenue Act 1967 arbitrator can be appointed with the consent of the parties or without the consent of the parties. The decision of the arbitrator is called “AWARD”.
RELEVANT PROVISIONS
Sections 151, 153, 154, 158, 159 Land Revenue Act, 1967.
LITERAL MEANING
A method of dispute resolution involving one or more neutral third parties who are usually agreed to be the disputing parties and whose decision is binding.
DEFINITION OF ARBITRATION
A process of dispute resolution in which a neutral third party renders a decision or award after the hearing at which both parties are given the opportunity of being heard.
POWER TO REFER TO ARBITRATION
Power to refer to arbitration is exercised in the following ways:
With the Consent of Parties:
Any revenue office, may with the consent of parties, refer to arbitration a dispute arising before him under this Act.
Without the Consent of Parties:
A collector of any assistant collector of the first grade, may without the consent of the parties refer to arbitration any dispute before him
Cases that can be Referred without the consent of the Parties.
- Any matter of which an entry is to be made in any record of the register under Chapter VI.
- Any matter relating to the distribution of an assessment under Section 67.
- The limits of any estate or of any holding, field, or other portion of an estate.
- The property to be divided at a partition or the mode of making a partition.
ORDER OF REFERENCE
In referring a dispute to arbitration, a revenue officer shall make an order of reference and specify therein the precise matter submitted to arbitration to the number of arbitrations which each party to the dispute is to nominate, the period within which the arbitrators are to be nominated, and the period within which the award is to be delivered.
The number of arbitrators which each party may nominate must be the same and not exceed two.
If from any cause arbitrators are not nominated or an award is not delivered, within the period fixed for in the order of reference, the revenue officer may, from time to time. extend that period, or may cancel the order of reference.
NOMINATION OF ARBITRATORS BY PARTIES
Each party to Nominate Arbitrators:
When an order of reference has been made, each party may nominate the number of arbitrators specified in the order, and the revenue officer shall nominate one other arbitrator.
Order disallowing Nomination:
The revenue officer may, for reasons to be recorded by him, make an order disallowing any nomination made by either party and requiring the party to make another nomination within a time to be specified in the order.
Final Order:
An order under subsection 2 of section 153 shall be final.
SUBSTITUTIONS OF ARBITRATORS BY PARTIES
If an arbitrator nominated by a party dies, desires to be discharged, or refuses or becomes incapable to act, the party may nominate another person in his stead.
NOMINATION & SUBSTITUTIONS OF ARBITRATORS BY REVENUE OFFICER
Failure to Nominate Arbitrators:
If either of the parties fails to nominate an arbitrator under sub-section 1 of section 153 within the period fixed in the order of reference, the revenue officer may nominate a person as arbitrator.
Disallowance of the Nomination of Arbitrators:
If the nomination of an arbitrator has been disallowed under sub-section 2 of section 153 and another arbitrator is not nominated within the time specified in the order under that sub-section or having been so nominated his nomination is also disallowed, then the revenue officer may nominate a person as arbitrator.
Failure to Nominate an Arbitrator in place of another Arbitrator:
If a party entitled to nominate an arbitrator in place of another arbitrator under section 154 fails to nominate him within one week from the date of the communication to him of a notice requiring him to make the nomination, the revenue officer may nominate a person as arbitrator.
Death of Arbitrator:
If an arbitrator nominated by the revenue officer dies, the revenue officer may nominate a person as arbitrator.
Discharge of Arbitrator:
If an arbitrator nominated by the revenue officer discharges, the revenue officer may nominate a person as arbitrator.
Refusal of Arbitrator:
If an arbitrator nominated by the revenue officer refuses, the revenue officer may nominate a person as arbitrator.
Incapacity to Act:
if an arbitrator nominated by the revenue officer is incapable to act, the revenue officer may nominate a person as arbitrator.
PROCESS OF APPEARANCE BEFORE ARBITRATOR
Issuance of same Processes:
The revenue officer shall, on the application of the arbitrator issue the same processes to the parties and witnesses whom the arbitrators desire to examine as he may issue in any proceedings under this Act before himself.
Party bound to appear before Arbitrators:
Any such party or witness shall be bound to appear before the arbitrators in obedience to a process issued under sub-section 1 either in person or by the agent as the arbitrators may require.
Duty to State Truth:
The person attending in obedience to the process shall be bound to state the truth upon any matter respecting which he is examined or makes statements, and to produce such documents and other things relating to any such matter as may be specified in the process.
AWARD OF ARBITRATORS & PRESENTATION THEREOF
Mode of Award:
The award shall be made in writing under their hands concerning the matters referred to them for arbitrators
Statement of Reasons:
The arbitrators shall state therein reasons, therefore.
Grounds of dissent of Arbitrator:
Any arbitrator dissenting from the award made by a majority of the arbitrators shall state the grounds of his dissent.
Presentation of Award:
The arbitrators shall present the award to the revenue officer in person or by an agent or send the same to him by registered post.
Authority to whom the award is to be presented:
The arbitrators shall present the award to the revenue officer
PROCEDURE AFTER PRESENTATION OF AWARD
Consideration of Award:
When the award has been received, the revenue officer shall fix a date for the consideration of the award
Hearing of Objections:
On the date fixed under sub-section 1 or on any subsequent date to which an adjournment may be made, the revenue officer shall hear any objections that the parties have to make to the award۔
EFFECT OF AWARD
The revenue officer may accept, reject, or modify the award received by him.
NON-APPLICATION OF ARBITRATION ACT
The Arbitration Act of 1940, does not apply to revenue matters.
CONCLUSION
It is concluded that a dispute between parties can be settled by a person who is called an arbitrator. The Revenue officer may with or without the consent of parties refer a dispute to arbitration presented before him for disposal Which is presented to the revenue officer. He is empowered to reject modify or accept the award. Which is given by the arbitrator.
FAQs
Analyze various provisions relating to the arbitration of revenue matters under the Land Revenue Act, of 1967.
(2019-S)
Analyze various provisions relating to the settlement of revenue disputes through arbitration. Do you think that the said provisions are beneficial for the settlement of revenue matters.?
(2014-S)
Discuss the procedure of referring a matter to arbitration and the procedure to be followed by the arbitrators for the determination of a matter referred to them.
(2013-A)
Write a detailed note on arbitration in revenue matters.
(2010-A)
Can every matter be referred for Arbitration without the consent of the parties? Does Arbitration Act 1940 apply to Revenue matters under Land Revenue Act?
(2009-A)