UPSC Prelims Practice Questions — SC appoints Justice Desai as mediator in KG basin gas dispute

Q1. With reference to conciliation under Part III of the Arbitration and Conciliation Act, 1996, consider the following statements: Which of the statements given above is/are correct?

  1. When the parties appear close to agreement, the conciliator may formulate the terms of a possible settlement and reformulate them after receiving the parties' observations.
  2. If the parties fail to agree, the conciliator may, like an arbitrator, deliver a decision on the dispute that binds both parties.
  3. A settlement agreement signed by the parties in conciliation has the same status and effect as an arbitral award on agreed terms.
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 1, 2 and 3
  • D. 1 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. The Supreme Court's appointment of a sole mediator in the KG basin gas dispute does not, by itself, bind the Union government or Reliance Industries to any particular outcome.
  2. Under the Mediation Act, 2023, a mediator assists the parties in reaching an amicable settlement but has no authority to impose a settlement on them.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. With reference to mediated settlement agreements under the Mediation Act, 2023, consider the following statements: Which of the statements given above are correct?

  1. To qualify as a mediated settlement agreement, the settlement must be in writing, must resolve some or all of the disputes, and must be authenticated by the mediator.
  2. A signed and authenticated mediated settlement agreement is enforced under the Code of Civil Procedure, 1908, as if it were a judgment or decree of a court.
  3. A party may challenge a mediated settlement agreement on the ground that the mediator misappreciated the evidence placed before them.
  4. Where a government body is a party, the settlement may be signed only after the competent authority has given prior written consent.
  • A. 1 and 3 only
  • B. 1, 2 and 4 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. A public sector undertaking and a private company sign a mediated settlement agreement under the Mediation Act, 2023. The competent authority gave its prior written consent before signing, and the mediator has authenticated the agreement. Soon afterwards, the undertaking's new management decides that the terms are unfavourable to it. Which of the following best describes the legal position of the agreement?

  • A. It can be set aside by a court if found patently illegal on the face of the record
  • B. It can be reopened on its merits because the terms affect revenue due to the exchequer
  • C. It can be set aside only on limited grounds such as fraud, corruption or impersonation
  • D. It has no force until Parliament approves it as a charge on the Consolidated Fund

Q5. With reference to setting aside a domestic arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996, consider the following statements: Which of the statements given above is/are correct?

  1. A court may set aside the award if, on reappreciating the evidence, it reaches a conclusion different from the tribunal's.
  2. A court may set aside the award if it is vitiated by patent illegality appearing on the face of the award.
  3. When a court tests an award against the fundamental policy of Indian law, it may not review the merits of the dispute.
  • A. 1 and 2 only
  • B. 3 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q6. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. In the KG basin gas dispute, a Division Bench of the Delhi High Court set aside an arbitral award that a single judge of the same court had earlier refused to set aside.
  2. An appeal under Section 37 of the Arbitration and Conciliation Act, 1996 allows the appellate court to re-examine the merits of the dispute afresh, as if it were the arbitral tribunal.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q7. Consider the following facts about the KG basin gas dispute. An arbitral tribunal ruled for the RIL-led consortium by a majority. A single judge of the Delhi High Court dismissed the Centre's challenge under Section 34 of the Arbitration and Conciliation Act, 1996. A Division Bench later set the award aside, holding it patently illegal and against public policy, chiefly because the consortium had not disclosed a 2003 report on reservoir connectivity. The consortium has appealed to the Supreme Court. Which of the following inferences can be drawn from the above?

  1. The Division Bench treated the defect as falling within the statutory grounds for setting aside an award, and not as a mere difference in assessing the evidence.
  2. The Centre's monetary claim against the consortium now stands finally decided in the Centre's favour.
  3. The single judge's ruling shows that the single judge found the tribunal's reading of the contract to be the correct one.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. With reference to India's hydrocarbon licensing regimes, consider the following statements: Which of the statements given above is/are correct?

  1. Under the revenue-sharing model, the government takes a share of gross revenue and need not scrutinise the costs incurred by the contractor.
  2. Under the earlier profit-sharing model, the contractor recovered its costs before sharing profit with the government.
  3. Under HELP, unconventional hydrocarbons such as shale gas and coal-bed methane need a separate licence from the one for conventional oil and gas in the same block.
  • A. 1, 2 and 3
  • B. 2 and 3 only
  • C. 1 and 2 only
  • D. 1 only