Inside the new CORD Rules · Part 1Rule 9

A Tiered Approach to Arbitrator Fees

Two disputes of the same monetary value can require very different levels of work. One may turn on a straightforward contractual issue. Another may involve multiple parties and contracts, novel legal questions, technical evidence, cross-border issues, and several interim applications.

A fee structure based only on the value of the claim does not fully account for that difference. It can treat cases requiring very different levels of time, expertise, and arbitral input in much the same way.

Rule 9 of the CORD Rules is designed to address this problem.

Under CORD's tiered fee model, every arbitration is placed in one of three tiers — Tier I, Tier II or Tier III — based not only on its monetary value, but also on its complexity. The tier then determines the fee schedule applicable to the arbitrators.

Schedule of feesPart A · Part B · Part C

Tier IPart A

Tribunal fee range₹27,000to₹15 lakhs

Lower Dispute Value, or a dispute of lower complexity.

Tier IIPart B

Tribunal fee range₹45,000to₹30 lakhs

Mid-range Dispute Value, or ordinary commercial complexity.

Tier IIIPart C

Tribunal fee range₹63,000to₹50 lakhs

Higher Dispute Value, or a novel, technical or multi-party dispute.

60% of Fourth ScheduleFees rise with value & complexity140% of Fourth Schedule

The result is a simple principle. The fee should better reflect the work an arbitrator is likely to undertake.

This avoids treating a straightforward dispute and a much more demanding dispute of similar value as requiring the same level of arbitral input.

Built-in flexibility

DesignationProvisional, with reasonsThe tier is provisionally designated after the initial pleadings and communicated to the parties with brief reasons.

Party choiceMove up or downThe parties can jointly agree to move the arbitration to a higher or lower tier. A party that wants a higher tier can also request one unilaterally by bearing the additional fee.

RevisitingIf the case materially changesA new counterclaim, an amendment, or another development that substantially alters value or complexity can reopen the designation.

Why it matters

The tiered model is intended to align cost, complexity and arbitral experience more closely.

Rule 9 requires CORD, when appointing an arbitrator, to have regard to the applicable tier and the experience and standing of prospective appointees. This allows arbitrators with substantial experience in complex disputes to be appointed where their expertise is most needed.

For parties, this means a fee structure built around the arbitration they actually have, not merely the number attached to the claim.