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Cost of Arbitration Proceedings: (1) Except when otherwise provided
for in the agreement, the parties seeking arbitration must pay to the
arbitrator the amount fixed their in consultation with parties for conducting
the arbitration proceedings.
(2) Except the otherwise provided in the agreement, each party shall
bear the expenses required for the arbitration proceedings in the proportion
prescribed by the arbitrator taking into account the relevant circumstances.

  1. Arbitrator’s Remuneration: (1) The arbitrator’s remuneration shall be
    as prescribed in the agreement.
    (2) In case the arbitrator’s remuneration is not mentioned in the
    agreement, the concerned parties shall pay the remuneration fixed by the
    arbitrator in consultation with them. Such remuneration shall be paid as a
    full payment or in the form of advance payment as ordered by the
    arbitrator in consultation with the concerned parties.
  2. Arbitrator To Refund Payments: In case no hearing has been made on
    the dispute referred to the arbitrator, or the position of arbitrator falls
    vacant for any reason, the concerned arbitrator, if he/she has already
    received remuneration under Section 36, shall refund the balance left after
    deducting. The amount covering the period for which he has worked, in
    consultation with the parties.
    Provided that in case any arbitrator is removed under Section 11, he/she
    shall fully refund the remuneration amount received by him/she prior to
    that, if any.
  3. Devolution of Rights and Liabilities: In case any party dies, disappears
    or becomes insane after the commencement of arbitration proceedings
    under this Act, all his rights and liabilities shall devolve on his/her relative
    who is entitled to inherit his/her property upon the prevailing law.
  4. Court to Have No Jurisdiction: Notwithstanding anything contained in
    the prevailing law, no court shall have jurisdiction over any matter
    regulated by this Act, except when otherwise provided for in this Act.
  5. Parties may Compromise: In case the parties to a dispute which has
    been referred for arbitration under this Act desire to reach a compromise
    they may submit an application to the arbitrator explicitly mentioning the
    conditions under which they wish to do so. The arbitrator shall approve the
    application so filed, and no appeal may be filed against such award except
    on issues concerning actions not taken according to the condition for
  6. Payment of Fees for Implementing the Award : (1) Notwithstanding
    anything contained in the prevailing law, a fee amounting to 0.5 percent of
    the amount received through the implementation of the award of the
    arbitrator shall be paid to the concerned court in the form of a fee for
    having implemented the award. In case the award to be so implemented
    does not concern for payment of any amount, a fee amounting to 0.5
    percent of the current market value or amount of the action to be taken or
    has to be taken according to the decision, if the same can be determined,
    and if not, a sum of Rs 500/- shall be paid by the party requesting for the
    implementation of the award.
    (2) In case any party who pays the fee mentioned in Sub-section (1)
    wishes to have it realized from the other party, the District Court shall have
    it realized from the other party as in the case of court fees according to the
    prevailing law.
  7. Case Files Relating to ♣Arbitrator: (1) The arbitrator shall prepare a
    case file of the document, evidence, statement of the concerned persons
    award and all other documents connected with arbitration mentioning date
    and time in a chronologically order .
    (2) After the finalization of the arbitration proceedings, the arbitrator
    shall submit the concerned case-file to the District Court.
    (3) The District Court shall keep the case-file received pursuant to
    Sub-section (2) as safely as it keeps the case-files of its judgments.

Amended the Act Amending Some Nepal Acts, 2064
(4) Notwithstanding anything contained in the prevailing law, no
copy of the award and documents related thereto shall be given to any
person other than the concerned parties without their approval.

  1. Power to Frame Rules: The Supreme Court may frame necessary Rules
    in respect to the procedure of regulating the functions to be discharged by
    courts under this Act.
  2. Repeal and Saving: (1) The Arbitration Act, 2038 (1981) has been
    (2) In the case of an arbitration whose proceedings have been started
    prior to the commencement of this Act, 2041(1984) the procedure laid
    down in the 1984 Arbitration Act itself shall be adopted.
    (3) The Time limit and grounds for filing appeal against the award
    taken through arbitration under the Arbitration Act, 2038 (1981) shall be as
    mentioned in the Arbitration Act, 2038 (1981).

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