News

Back

Latest News

Arbitral Award

Introduction:

Arbitration is the process by which a dispute or difference between two or more parties as to their mutual legal rights and liabilities is referred to and determined judicially and with binding effect by the application of the law by one or more persons constituting the “arbitral tribunal” instead of by a court of law. (Halsbury’s Laws of England, (4th ed. Butterworths, 1991) paras. 332 and 601.)

The arbitrator conducts hearings with the parties and passes his decision in the form of an award. It is analogous to a judgment given by a court and can be enforced in the same way as a court-ordered judgment. It is final and binding upon the parties unless challenged in accordance with Section 34 of the Arbitration and Conciliation Act, 1996 (“Act”).

Drafting an award is a complex matter as the arbitrator must condense the entire proceedings into a coherent and reasoned document. This chapter shall examine the requirements of a valid arbitral award as per the Act.

 

Definition of award:

The Act does not give a concrete definition of the term ‘arbitral award’. Section 2(1)(c) merely states that for the purposes of Part I of the Act, the term includes an interim award within its meaning.

Types of awards:

The type of award is generally stated in its title. There are four distinct types of awards defined under the Act, each of them fulfilling specific purposes:

Interim award:

It is an award that affects the rights of the parties but is not a final award. An arbitral tribunal may at any time during the arbitral proceedings make an interim arbitral award on any matter with respect to which it may make a final arbitral award.

Additional award:

Such an award is made upon application by a party when a claim or claims are presented in the arbitral proceedings but omitted from the arbitral award.

As per the Act, such a request for an additional award must be made within thirty days from the receipt of the arbitral award. Notice of the same must also be given to the other party.

Settlement award:

If during the arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.

An arbitral award on agreed terms shall be made in accordance with Section 31 and shall state that it is an arbitral award.

An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute.

Final award:

It is an award that brings finality to the arbitral proceedings. The final award is passed after the disputes have been adjudicated by the arbitrator based on all the pleadings and evidence led by the parties. It has the effect of terminating the arbitration proceedings.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.

  • Arbitral Award
  • Definition of award:
  • Types of award:

BY : Mr. kartikeya Awasthi

All Latest News

<