Can the Court under Section 9 secure the entire amount awarded under the Award?
One of the foremost wanted remedies underneath the Arbitration and Conciliation Act, 1996 (the Act) is that the grant of interim relief beneath Section 9 of the Act that permits the parties to use to the court for interim relief before or throughout the arbitrational proceedings, or once an award is passed however before it's implemented. The law of interim reliefs took a good stride under the Act as neither the Arbitration Act of 1940 nor the UNICTRAL Model Law had envisaged granting interim reliefs to a party in an exceedingly post-award situation.
The Act consequently permits the parties, before executing the award, to use the court for securing the issue of the arbitral award to safeguard the decretal amount, in order that the awarded individual cannot evade the obligations under the award and create the realization of the award illusory. Power Mech projects Ltd. v. Sepco electric power Construction Corporation Relying on the recent judgments of the Supreme Court and considering the facts of the case, the Court directed deposit of 100% of the awarded amount with the registry of the high court.
The grant of interim reliefs underneath Section nine of the Act, particularly in an exceeding situation wherever the award has been delivered, assumes significance primarily as a result of the Act provides for a statutory period of 3 months for the awarded individual to file a challenge to the award. This created a unique hurdle within the enforcement of the award by the in award-holder since the mere filing of section thirty-four application would mechanically keep the execution of the award, unfinished the judgement of the setting aside application.
To remedy such incompatibility in law, the Act, as amended in 2015 removed the thought of an automatic stay the execution of awards, unfinished the judgement of a setting aside application, and allowed award- holders to right away moving for the execution of the award, even though a section thirty-four application was unfinished before the court. This was deemed essential to confirm that the decree obtained in favour of the award- holder failed to stay unsatisfied and be rendered a mere paper decree amidst the rigmarole of the award debtor’s tries to stall execution of the award. Underneath the amended Act, an award debtor must currently essentially apply for a stay of the execution of the mediation award by the successful award-holder, through a separate application.
Accordingly, a post-award Section nine application attains revived significance because while the amended Act permits for the execution of the award as a money decree pending a section thirty-four challenge, it doesn't cowl things wherever the ninety-day amount provided to award debtors to challenge an arbitrational award is utilized to alienate its assets with the only intent of resisting the execution of the award. In such a circumstance, even though the successful award-holder moves for the execution of the award upon expiration of the statutory period, he would be prevented from enjoying the fruits of his decree on account of the award debtor’s mala fide conduct. The sole remedy on the market to a successful award-holder to hunt interim protection of the award quantity in such circumstances, therefore, remains a post-award Section 9 application.
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. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre shall not be responsible for any errors caused due to human error or otherwise.
 [Judgment dated Feb seventeen, 2020 in OMP (I) (COMM) 523/2017]
(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. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.)