(1) If there arises any dispute between the Board of Directors, managing director and any officers or employees in relation to the terms and conditions existing between any of them, the dispute shall be settled only by one judge of the Court of Appeal7 as designated by the Government of Nepal, depending on the circumstance.

(2) The arbitrator shall have the same powers as the court has in relation to the examining of witness and evidence, summoning the attendance of parties and opposite parties and the production of documents, in relation to the dispute referred to arbitration under Sub-section (1) for decision/settlement.

(3) The arbitral award shall be final and binding to all parties. Provided that, if an application is made by the aggrieved party, the Court of Appeal8 may void the award and may make another decision only in the following circumstance:

(a) If it clearly appears that the arbitrator has indulged in improper conduct in making award or made the wrong
award showing any specific ulterior motive or being subjective, or (b) If the arbitral award is directly contrary to law.