ADR (AutoRecovered) Arbitral Award

Faculty of Law, Jamia Millia Islamia
CONCEPT OF ARBITRAL AWARD AND

PUBLIC POLICY: AN ANALYSIS
Report
CLINICAL COURSE-1 (ALTERNATIVE DISPUTE

REDRESSAL)
Submitted By:
Name- Khushbu Gupta
Student ID: 20173270
B.A.LL.B. (VII Semester) (Self Finance)
Submitted to: Office of Dean, Faculty of Law, Jamia Millia Islamia,

New Delhi
(November 19, 2020)
1
ACKNOWLEDGEMENT
I have taken efforts in this project however it would not have been possible without the kind
support and help of many individuals, websites and books. I would like to extend my sincere
thanks to all of them in completing the project.
I am highly indebted to Ms. Karishma Sheikh for guidance and constant supervision as well as
for providing necessary information regarding the project and also for her support in completing
the project. The blessing help and guidance given by her time to time shall carry me a long way
in the journey of life on which I am about to embark.
Khushbu Gupta
B.A. LL.B. (HONS.) SELF-FINANCE 4TH YEAR
2
TABLE OF CONTENTS
ABBREVIATIONS........................................................................................................................5
LIST OF CASES............................................................................................................................8
INTRODUCTION.......................................................................................................................12
RESEARCH METHODOLOGY...............................................................................................13
MEANING OF ARBITRAL AWARD......................................................................................14
ESSENTIALS OF ARBITRAL AWARD.................................................................................15
CLASSIFICATION OF AWARDS............................................................................................16
GENERAL PRINCIPLES OF AN ARBITRAL AWARD......................................................17
MAKING OF AN ARBITRAL AWARD..................................................................................18
RULES APPLICABLE TO SUBSTANCE OF DISPUTE...................................................19
DECISION OF THE ARBITRAL TRIBUNAL....................................................................21
TIME LIMIT FOR MAKING AN ARBITRAL AWARD...................................................22
FAST TRACK PROCEDURE................................................................................................24
SETTLEMENT........................................................................................................................25
FORM AND CONTENTS OF ARBITRAL AWARD..........................................................26
COST OF THE PROCEEDING.............................................................................................30
ADDITIONAL AWARD.........................................................................................................32
TERMINATION OF PROCEEDINGS.....................................................................................33
RECOURSE AGAINST AN ARBITRAL AWARD................................................................35
FINALITY OF AN ARBITRAL AWARD................................................................................38
ENFORCEMENT OF AN ARBITRAL AWARD....................................................................40
ENFORCEMENT OF CERTAIN FOREIGN AWARDS.......................................................42
NEW YORK CONVENTION.................................................................................................43
GENEVA CONVENTION......................................................................................................50
3
PUBLIC POLICY AND ARBITRAL AWARD.......................................................................54
CONCLUSION............................................................................................................................58
BIBLIOGRAPHY........................................................................................................................60
4
ABBREVIATIONS
A
AIR All India Reporter
All. Allahabad
AP Andhra Pradesh
Arb. LR Arbitration Law Reporter
Arb. LT Arbitration Law Times
B
Bom. LR Bombay Law Reporter
C
Cal. Calcutta
CM APPL. Miscellaneous Application
CS (COMM) Civil suit (Commercial)
D
Del. Delhi
E
Edn. Edition
EX.P. Execution Petition
F
FAO First Appeal from Order
G
Guj. Gujrat
H
HC High Court
I
Ins. Inserted
5
M
Mad. Madras
MLJ Madras Law Journal
Mys. Mysore
N
Nag. Nagpur
O
O.M.P. (COMM) Original Miscellaneous Petition (Commercial)
OS Original Suit
P
P. & H. Punjab and Haryana
Pvt. Ltd. Private Limited
R
Raj. Rajasthan
S
s. Section
SC Supreme Court
SCC Supreme Court Cases
SCR Supreme Court Reports
SCW Supreme Court Weekly
ss. Sections
U
u/s Under Section
UNCITRAL United Nation Commission on International Trade Law
V
v. versus
W
w.e.f. With Effect From
6
7
LIST OF CASES
1. Anand Prakash v. Assistant Registrar, AIR 1968 All. 22
2. BCCI v, Kochi Cricket Private Ltd., AIR 2018 SC 183
3. Bharat Aluminium Co. Ltd. v. Kaiser Aluminium Technical Services Inc., (2012) 9 SCC 552
4. Bhatia International v. Bulk Trading S.A., (2002) 4 SCC 105; AIR 2002 SC 1432
5. Brijendra Nath v. Mayank, AIR 1994 SC 2562
6. Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly, AIR 1986 SC
1571
7. Centrotrade Minerals & Metals Inc v. Hindustan Copper Ltd., 2006 (2) Arb LR 547
8. Charan Sharan Khemka v. Achint Chemicals, 2005 M (2) Raj 465 (Raj.)
9. Compagnie D’ Armement Maritime v. Compagnie Tunisienne de Navigation, (1971) AC 572
10. Consolidated Engineering Enterprises v. Principal Secretary (Immigration Department),
2008 7 SCC 169
11. Damoder Engineering Construction Co. In Re, (1994) 1 Arb. LT 133
12. Delhi Development Authority v. Ashok Kumar & Co., Judgment dated 05.08.2019 in C.M.
(M) 264/2017
13. Dwarka Das v. India Engineering, AIR 1972 SC 1538
14. Food Corporation of India v. Great Eastern Shipping Co. Ltd., AIR 1988 SC 1198
15. George v. Secretary to Government, Water and Supply Department Trivandrum, AIR 1990
SC 53
16. Glencore International AG v. Indian Potash Ltd. & Anr., Judgement dated August 9, 2019 in
EX.P. 99/2015
17. Gobardhan Das v. Lakshmi Ram, AIR 1954 SC 689
18. Goyal MG Gases Ltd. v. Griesheim GMBH, 1999 (2) R.A.J. 5 (Delhi)
19. Harendra H. Mehta v. Mukesh H. Mehta, 1999 (5) SCC 108
20. Haryana Telecom Ltd. v. Sterlite Industries, 1999 (2) Arb. LR 685 (SC)
21. Hindustan Construction Co. v. Union of India, AIR 1976 SC 526, 527
22. Indian Organic Chemicals Ltd. v. Chemtex Fibres Inc., AIR 1978 Bom. 106
23. J. Kuppuswami v. Anantharaman, 1947 (1) M.L.J. 297
24. J.G. Engineers Pvt. Ltd. v. Union of India & another, AIR 2011 SC 2477
8
25. Jaiprakash Associated Ltd. v. Tehri Hydro Development, Judgement dated February 7, 2019
in CIVIL APPEAL NO(S). 1539 OF 2019
26. Jes & Ben Group Pvt. Ltd. v. Hell Magyarorzag Kft., Judgement dated 23.09.2019 in CS
(COMM) 257/2019
27. Kapila Textiles v. Madhav, AIR 1963 Mys. 39
28. Kiran Singh v. Chaman Paswan, AIR 1954 SC 340
29. Kishan Lai v. Ram. Swaroop, 1965 ALJ 698 at 705
30. Koch Navigation Inc. v. M/s. H.P.C.L., AIR 1989 SC 2198
31. Lai Das v. Bai Lai, 11 Bom. LR 20
32. Ludwig Wumsche & Co. v. Raunak International Ltd., AIR 1983 Del 247, 250
33. M/S Lion Engineering Consultants v. State of Madhya Pradesh, Judgement dated July 10,
2017 in CIVIL APPEAL NOS. 8984-8985 OF 2017
34. M/s Morgan Securities & Credits Pvt. Ltd. v. Videocon Industries Ltd., Judgement dated
February 26, 2020 in FAO(OS) (COMM) 9/2020
35. M/s. Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., 2001 (4) Supreme 141
36. Mahanagar Telephone Nigam Limited v. Haryana Telecom Ltd., Judgment dated March 14,
2020 in OMP 1113/2012
37. MBL Infrastructures Ltd. v. Rites Limited, Judgment dated February 10, 2020 in OMP (Misc)
(Comm.) 56/2020
38. Mis. Naraindas R. Israni v. Union of India, AIR 1993 Del. 78
39. Mohammed Akbar v. Attar Singh, AIR 1945 PC 170
40. Munshi Ram v. Bhanwarilal, AIR 1962 SC 903
41. N.T.P.C. v. Singer Company, AIR 1993 SC 998
42. Narayan Das v. Vallabhdas, AIR 1972 SC 1
43. National Aluminum Co. Ltd. v. Presteel Fabrication (P) Ltd., (2004) 1 SCC 540
44. National Thermal Power Corporation v. Singer Co., (1992) 3 SCC 551
45. Oil and Natural Gas Corporation Ltd. v. SAW Pipes Ltd., AIR 2003 SC 2629; (2003) 5 SCC
705
46. Orient Middle East Lines Ltd. v. M/s. Brace Transport Corpn. of Monrovia, AIR 1986 Guj
62, 74.
9
47. Pam Developments Pvt. Ltd. v. State of West Bengal, Judgement dated July 12, 2019 in Civil
Appeal No. 5433 of 2019
48. Phulchand Exports Ltd. v. OOO Patriot, (2011) 10 SCC 300
49. R. Murlidhar v. NPCC, AIR 1993 Del. 68
50. R.K Textiles v. Sulabh Textiles Ltd., 2003 Arb. LR 303 (Bom.)
51. R.M. Investment & Trading Co. Pvt. Ltd. v. Boeing Co., AIR 1994 SC 1136
52. Radha Chemicals v. UOI, Judgement dated October 10, 2018 in CIVIL APPEAL NO. 10386
OF 2018
53. Ram Singh v. G.A. Coop. Service Society, AIR 1976 P. & H. 99
54. Renusagar Power Co. Ltd. v. General Electric Co., AIR 1985 SC 1156
55. Renusagar Power Co. v. G.E.C, (1994) 81 Comapnay Cases 171
56. Renusagar Power Co. v. G.E.C, AIR 1994 SC 860, 888
57. Rikhadas v. Ballabhdas, AIR 1962 SC 551
58. Sai Babu v. M/S Clariya Steels Pvt. Ltd., Judgement dated May 1, 2019
59. Satish Kumar v. Surendra Kumar, AIR 1970 SC 833
60. Satyapal v. Ved Prakash, AIR 1980 A1 268
61. SBS Logistics Singapore Pvt. Ltd. v. SBS Transpole Logistics Private Limited, Judgment
dated 16.09.2019 in O.M.P. (EFA) (COMM.) 4/2018
62. Se Seoil v. Gorakhram, 64 Bom. LR 113
63. Serajuddin v. Michael Golodetz, AIR 1960 Cal. 49
64. Shapoorji Pallonji and Co. Pvt. Ltd. v. Jindal India Thermal Power Limited, Judgment dated
January 23, 2020 OMP (Misc.) (Comm.) 512/2019
65. Shashi Sekhareswar v. Lalit Mohan, AIR 1925 PC 34
66. Sheo Dutt v. Pandit Vishnu Dutt, AIR 1955 Nag. 116
67. Shir Lal Mahal v. Progato Grano Spa, (2014) 2 SCC 433
68. Societa Anonmina v. S. Gorakharam Gokalchand, AIR 1964 Mad. 532
69. Spentex Industries Ltd. v. Queen Emanuel Urquhart & Sullivan LLP, Judgement dated May
12, 2020 in CS(OS) 568/2017
70. SREI Infrastructure Finance Limited v. Tuff Drilling Private Limited, (2018) 11 SCC 470
71. State of Bihar & Ors. v. Bihar Rajya Bank Bhumi Samiti, Judgement dated July 30, 2018 in
CIVIL APPEAL NO. 7314 of 2018
10
72. State of Hindustan Construction Co. Ltd. v. State of Jammu & Kashmir, 1992 AIR SCW
2647
73. Sudhir Kumar v. J.N. Chemicals, AIR 1985 Cal. 454
74. Sushil Ansal v. Union of India, AIR 1980 Del. 43
75. Tamilnadu Electricity Board v. Bridge Tunnel Constructions, 1997] INSC 178 (18 February
1997)
76. Union of India v. M/S Raymus Porta Buildings Ltd., AIR 2007 (NOC) 1606 (H.P.)
77. Union of India v. Om Prakash Baldev Krishna, AIR 2000 J&K 79
78. UOI v. Bungo Steel Furniture (P) Ltd., (1967) 1 SCR 324
79. UOI v. G.l. Litmus Events Pvt. Ltd., Judgement dated September 30, 2019 in O.M.P.
(COMM) 390/2018
80. UOI v. M/S Jcb India Ltd., Judgement dated September 27, 2019 in FAO(OS) (COMM)
44/2019 & CM APPL. 9200/2019 (stay)
81. Venture Global Engineering v. Satyam Computer Services Ltd., AIR 2008 SC 1061
82. Vessel M.V. Baltic Confidence & another v. State Trading Corporation of India Ltd., 2001
(6) Supreme 282 (SC)
83. Western Maharashtra Development Corporation Ltd. v. Bajaj Auto Ltd., 2010) 154 Comp
Case 593 (Bom.)
11
INTRODUCTION
Arbitration is one of the flexible methods of Alternative Dispute Resolution. Arbitration is a
legal process which takes place outside the courts and still results in final and legally binding
decisions. It involves the determination made by the third parties called arbitrators during arbitral
proceedings. The arbitrators are appointed by the parties in dispute. The decision made by the
arbitrator during arbitration is known as arbitral award.
Arbitral award is the conclusive determination on the merit basis by the arbitral tribunal during
arbitration proceedings. It is similar to the decision given by the court. The definition of arbitral
award given under Arbitration Act is the inclusive one. Arbitral award can be final or interim.
Additional and settlement award can also be made by the arbitral tribunal. Some principles need
to be followed by the arbitrator when the arbitral award is made.
Part I of the Arbitration Act deals with domestic arbitration. Chapter IV of the Arbitration Act
provides for the rules to be applied during making of an arbitral award. It also provides the time
limit for making of an arbitral award and as to when the arbitral proceedings can be
terminated.The Arbitration and Conciliation Act, 1996 also provides various grounds on which
the court can set aside a domestic arbitral award. It also provides the procedure for the
enforcement of an arbitral award
Part II of the Act deals with the foreign arbitration. It talks about the award made in the country
signatory to New York Convention and Geneva Convention. It talks about that which award will
be considered foreign award and provides for the enforcement of such award
The public policy has been made a ground for setting aside an arbitral award under section 34 for
domestic award and section 48 for foreign award. There is much ambiguity as to when a foreign
award is in violation of public policy. The concept of public policy has changed from time to
time through various decisions given by the court as to when the award made is in violation of
public policy.
12
RESEARCH METHODOLOGY
OBJECTIVE OF THE PAPER
The main objective of the paper is to know the present scenario of the Arbitral award under
Arbitration and Conciliation Act, 1996. It is designed to address the following issues:
1. To study the concept of Arbitral Award under Arbitration and Conciliation Act, 1996.
2. To study the procedure for making of an Arbitral Award by the Arbitral Tribunal under
Arbitration and Conciliation Act, 1996.
3. To study the grounds on which Arbitral Award can be set aside by the Court.
4. To study how the domestic arbitral award and foreign arbitral award are enforced in India
under Arbitration and Conciliation Act, 1996.
5. To study the concept of Public Policy as an exception to the enforcement of domestic as
well as foreign arbitral award.
RESEARCH PROBLEM
To analyse the concept of Arbitral Award and Public Policy under Arbitration and Conciliation
Act, 1996.
METHODOLOGY
Descriptive methodology has been used for study. Both primary and secondary sources have
been used in the project. The doctrinal research method has been used in the project. I have gone
through the books related to Arbitration and Conciliation Act, 1996. I have also relied upon
many articles of various scholars and some other reading material available on web sources.
DISCIPLINE
Arbitration and Conciliation Act, 1996, and Amended Act of 2015 and 2019.
13
MEANING OF ARBITRAL AWARD
An arbitral award or an arbitration award is a conclusive determination on the merits as to the
questions, issues or disputes that are put forward before the arbitration tribunal, weather in a
domestic or international arbitration. An arbitral award is similar to a judgement given by court.
The Arbitration and Conciliation Act, 1996 nowhere defines the term arbitral award but u/s 2(1)
(c) of Arbitration and Conciliation Act, 1996, it has been stated that arbitral award includes an
interim award. The definition of "arbitral award" in Section 2(l)(c) of the Arbitration and
Conciliation Act, 1996 is not an exhaustive definition.
An arbitral award is of a non-monetary nature where the entire claims of the claimant fails and
no money needs to be paid by either party. An arbitral award can be made for payment of a sum
of money, declaration upon any matter to be decided in the arbitration proceedings, injunctive
relief, specific performance of a contract and for rectification, setting aside or cancellation of a
deed or other document.
The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral
award on any matter in dispute with respect to which it may make a final arbitral award. 1 Hence,
an interim award may be an arbitral award.
According to H. Lexicon: “It is an instrument which embodies a decision of an arbitrator or

arbitrators as regards matters referred to him or them.”
According to Russell: “An award in order to be valid, must be final, certain, consistent and
possible and must decide matters to be submitted and no more than the matters submitted”.
An arbitral award is not a contract but the decision arising out of the contract.
An arbitral award is similar to a decree which comes into effect from the date on which it has
been signed and right of the parties related to it comes into effect from that date onwards. 2 An
arbitral award must be in writing because it is like a decree to Civil Court. An arbitral award
given without a dispute between the parties is nullity.
1
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 31(6).
2
Lai Das v. Bai Lai, 11 Bom. LR 20.
14
The agent if authorized by the parties may refer the dispute to arbitration on behalf of the parties
for settlement.
In Kishan Lai v. Ram Swaroop,3 the Allahabad High Court held that the Vakalatnama submitted
by the parties differ in respect of their contents. The Vakalatnama submitted by the plaintiff
authorised the agent to compromise the suit or proceeding. In another aspect the Vakalatnama on
record, authorises the agent to refer the matter to arbitration which includes power to
compromise in arbitration. Therefore, if an agent is authorized to compromise the dispute it is
deemed that he has power to refer the matter for arbitration.
In Sheo Dutt v. Pandit Vishnu Dutt,4 the court held that if there is a mishandling of the arbitral
proceedings in making an arbitral award as to result in substantial miscarriage of justice, the
arbitral award can be set aside by the court.
ESSENTIALS OF ARBITRAL AWARD

It is well settled that a valid, proper and enforceable arbitral award must have the following
essential ingredients, which are as follows:
a) An arbitral award must be in writing and signed by the members of the arbitrator.
b) The parties must be competent to initiate arbitral proceedings.
c) An arbitral award must be a reasoned one.
d) There must be arbitration clause to assign disputes or differences before arbitral tribunal.
e) The contents of an arbitral award must be connected with the subject-matter of the
dispute arbitrated.
f) An arbitral award must show date and place of arbitration.
g) An arbitral award must be founded on the principle of mutuality.
h) A certified copy of arbitral award is required to be delivered to each party.
i) If the arbitral award is for payment of money, the arbitral award may include interest at
such rate as the arbitral tribunal deems reasonable.
j) The language used in passing the arbitral award must be free from any ambiguity.
3
1965 ALJ 698 at 705.
4
AIR 1955 Nag. 116.
15
Where the arbitral award is based on mutual settlement on a dispute by the parties, then in such a
case no reason need to be given.5
CLASSIFICATION OF AWARDS
The Arbitration and Conciliation Act, 1996 identifies the four categories of arbitral award. These
are as follows:
1. Final Award: The final award is made in accordance with the provisions given under s.
35 of The Arbitration and Conciliation Act, 1996 by the arbitration tribunal. The final
award should be in writing and signed by all arbitrators the award must contain the
reason and state where the arbitration took place. It must also mention the date for
calculating interest on payments. When all the issues submitted to arbitrator are
adjudicated, the award made by an arbitration tribunal is referred to as a final award.
Once the final award is made the arbitration proceedings comes to an end
2. Interim Award: The interim award is made according to section 9 of The Arbitration and
Conciliation Act, 1996 by the arbitration tribunal. It is a temporary award until the final
award is made. There can be two types of interim award, one which remains in force till
the final award is rendered and another is final as regards to the matters it deals with. The
latter is referred as interim, because when it was rendered there were still some pending
issues.
in Anand Prakash v. Assistant Registrar,6 the Allahabad HC held that an interim arbitral
award is also an award and therefore, to be made in the same way as an award, after
hearing the parties and on consideration of the evidence given.
3. Settlement award: During the arbitration proceedings, the parties may choose to settle the
dispute instead of having it adjudicated by the arbitrator. If parties choose to settle the
matter then in such a situation the arbitrator could assist the parties in arriving at the
settlement. If a settlement is arrived at, and the arbitrator has no objection with it, then
terms of the settlement could made part of an award. This is referred to as a settlement
award.7 The settlement award also known as consent award. The consent award usually
expedites the arbitration proceedings.
5
6
AIR 1968 All. 22.
7
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 30.
16
4. Additional award: When a final award has been rendered, but it is later found out that
certain claims that have been submitted to arbitration tribunal were not adjudicated. In
such a situation the parties can request the arbitration tribunal to make an additional
award covering the issues that have been left out. Such request must be made within 30
days of the receipt if the award.8
GENERAL PRINCIPLES OF AN ARBITRAL AWARD

1. Challenging of an arbitral award: An arbitral award can be challenged by a person who is
a party to arbitration agreement. A person who is not a party to arbitration agreement
cannot raise a challenge against arbitral award.
2. Authority: an arbitral award can only be challenged before a court which could include a
District Court and High Court exercising original jurisdiction for awards from domestic
arbitration and High Court for awards from international commercial arbitration.
3. Arbitral award operates as res judicata: In Shashi Sekhareswar v. Lalit Mohan,9 the Privy
Council, inter alia observed that a decree passed on the basis of arbitral award would
have the same effect as an ordinary judgment of a court and on question which has
already been decided by the arbitrators it operates as res judicata. But, where a claim in
question has not been included as a subject-matter of reference to arbitration, it was held
that principle of res judicata is not applicable in respect of that claim. 10 Apex Court
observed that an arbitral award is to be treated as a decree passed by the Civil Court, and
it is binding on the parties.11
4. Arbitral award may be final or interim: An arbitral award may be a “final award” or an
"interim award" unless there is an agreement to the contrary between the parties and
depending upon the nature of the matter in dispute, the arbitrator will make an interim
award.
5. Arbitral award to be made by majority: It is mandatory that an arbitral award is to be
made by majority of arbitrators. It is to be signed by arbitrators as to the validity of
8
The Arbitration and Conciliation Act (Act 26 of 1996), 1996, s. 33(4).
9
AIR 1925 PC 34.
10
Damoder Engineering Construction Co. In Re, (1994) 1 Arb. LT 133.
11
Satish Kumar v. Surendra Kumar, AIR 1970 SC 833.
17
arbitral award. In case an arbitrator disaggred from the majority decision, he could attach
his dissenting opinion to the majority decision, though it is not obligatory.12
6. Time limit for making an arbitral award: An arbitral award shall be made within a period
of 12 months with an extension of 6 months from the date the arbitration proceedings
have begun.
7. Timeline for challenging an arbitral award: the challenging of an arbitral award can be
raised within a period of 3 months from the date when the award has been received by the
party, with a maximum extension of 30 more days by the court.13
8. Auto stay: there is no automatic stay on the enforcement of an arbitral award. A party has
to specifically request for the stay and such request will not by itself make that award
unenforceable, unless the Court grants an order of stay of the operation on a separate
application made for that purpose and the court at the time of granting stay can impose
conditions.
9. Law of Limitation applicable to arbitral award: The present Act has made it mandatory
that the enforcement of an arbitral award shall be subject to Limitation Act,14 in the same
way as it is applicable to "contracts" and thus a suit for specific performance could be
filed within the period of limitation as prescribed under Article 54 of the Limitation Act,
1963. Therefore, when period of limitation has expired an arbitral award cannot be set
aside. It amounts to waiver of rights by the parties
MAKING OF AN ARBITRAL AWARD

The document that gives and explains the decision(s) of an arbitrator is called an arbitral award.
The arbitral award is binding on both parties an arbitrator has authority to issue interim, partial
and final awards. Having issued a final award, the arbitrator has no further authority upon the
arbitration, except for the right to correct any minor slips.
Either party can, within a reasonable time may seek to challenge an arbitral award in the High
Court However, the court will only interfere on limited grounds relating to the capacity of the
parties, the validity or scope of the arbitration agreement, or unfairness or impropriety in me
conduct of the proceedings for domestic arbitrations, and the court may also, unless otherwise
12
Arbitration and Conciliation Act, 1996 (Act 26 of 1996), ss. 2(1)(c), 29(1).
13
Consolidated Engineering Enterprises v. Principal Secretary (Immigration Department), 2008 7 SCC 169.
14
Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 34(3).
18
agreed by the parties, an appeal on a question of law arising from the award. In this case, the
court may confirm, vary, set aside the award, or refer it back to the arbitrator for reconsideration
in the light of the opinion of the court on the question of law.
Sections 28 to 32 and section 33 deals with the making of an award by arbitrators. Sailent
features of the same are as follows:
RULES APPLICABLE TO SUBSTANCE OF DISPUTE

Section 28 is modelled on the pattern of Article 28 of the UNCITRAL Model Law. The rules for
making an arbitral award related to substance of dispute under section 28 of The Arbitration and
Conciliation Act, 1996 should be applied only when the place of arbitration is in India, be it
domestic commercial arbitration or international commercial arbitration. Under this section,
freedom of the parties is not provided as contained under Section 2(6) of the Arbitration and
Conciliation Act, 1996.
Generally, in an arbitration other than an international commercial arbitration, the arbitral

tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law
for the time being in force in India. 15 For example: Dispute between the partners of a firm shall
be resolved by the application of the provision of the Indian Partnership Act.
In case of international commercial arbitration, the parties have been allowed autonomy to
designate the rule of law. Where the parties fail to designate any law, the arbitral tribunal is to
apply the law as considered appropriate in the circumstances of dispute. Section 28(1)(b) lays
down that in international commercial arbitration:
a) The arbitral tribunal shall decide the dispute in accordance with, the rules of law
designated by the parties as applicable to the substance of the dispute;16
b) Any designation by the parties of the law or legal system of a given country shall be
construed, unless otherwise expressed, as directly referring to the substantive law of that
country and not to its conflict of laws;17
15
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 28(1)(a).
16
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 28(1)(b)(i).
17
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 28(1)(b)(ii).
19
c) Failing any designation of the law under clause (a) by the parties, the arbitral tribunal
shall apply the rules of law it considers to be appropriate given all the circumstances
surrounding the dispute.18
The mandate of Section 28 of the Arbitration and Conciliation Act, 1996 shows that the
contracting parties have been given freedom to choose national laws of different States as to
which national laws will be applied in case the disputes arise and to be referred to for arbitration.
In fact, this provision is required to be mentioned in the arbitration agreement itself.
Wherein the parties fail to do so, the arbitral tribunal may decide as to which national laws will
be applied since the parties belong to the different States. Besides, the elements like
a) The place where the arbitration agreement has been executed,

b) The place where the contract is performed, and
c) The place, that is the forum where dispute has to be settled,
are to be taken into consideration while determining the choice of applicability of law
toarbitration.
In Tzartzis & Sykies v. Morark Line A/B,19 the contracting parties belonged to different nations
i.e., Sweden and Greece respectively and subject to jurisdiction of the same, whereas arbitration
agreement between the parties provided for arbitration in London. It was held that the
applicability of law chosen for arbitration i.e., English Law was not the law of either party but
the parties were competent to select the Law of their choice for arbitration.
In National Thermal Power Corporation v. Singer Co.,20 the Apex Court observed that as the
disputes between the parties had the closest connection with India and the Indian Laws and no
connection with English Law, the arbitral award would be governed by the law in force in India.
The Court held that in the present case the contract was between an Indian company and foreign
company. There is an arbitration clause in existence which specifies that Indian law shall be
applicable to all matters arising out of the contract and in case of arbitration it has to be governed
by the Rules of the International Chamber of Commerce, Paris. Since, the parties have chosen
18
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 28(1)(b)(iii).
19
Compagnie D’ Armement Maritime v. Compagnie Tunisienne de Navigation, (1971) AC 572.
20
(1992) 3 SCC 551.
20
the Indian law as proper law to be applied in the contract, it could be applicable to the arbitration
agreement also, hence, arbitral award is to be governed by the Indian law.
The arbitral tribunal shall decide ‘ex aequo et bono’ means ‘based on equity and good
conscience’ or as ‘amiable compositeur’ means ‘friendly compromise i.e. without applying strict
legal rules of interpretation as to the obligation of the parties, weather contractual or otherwise’
only if the parties have expressly authorised it to do so.21
In all the cases, the arbitral tribunal has to decide according to the terms of the contract by taking
into account the usage of the trade applicable to the transaction.22
In Mahanagar Telephone Nigam Limited v. Haryana Telecom Ltd.,23 the Delhi HC held that as
per section 28 of the Arbitration and Conciliation Act, 1996 the arbitrator is bound to decide in
accordance with the terms of the contract.
In J.G. Engineers Pvt. Ltd. v. Union of India & another,24 The Apex Court held that where
contractor was not responsible for the delay and the respondents were responsible for the delay.
If so, then contractor will be entitled to a valid extension under the provisions of the contract,
without levy of any liquidated damages. If the contractor is entitled to such extension without
levy of penalty, then it follows that under clause 10(cc) of the agreement the contractor would be
entitled to escalation in terms of the contract for the work done during the period of extension.
DECISION OF THE ARBITRAL TRIBUNAL

In arbitral proceedings with more than one arbitrator the decision of the arbitral tribunal is to
made by the majority of all its members unless the parties have agreed otherwise. 25 For example:
The partes may decide that the decision should be unanimous and not by majority.
The parties or all the members of the arbitral tribunal may agree that the question of procedure in
the arbitration proceeedings may be decided by the presiding arbitrator.26
21
22
23
Judgment dated March 14, 2020 in OMP 1113/2012.
24
AIR 2011 SC 2477.
25
26
21
Section 29 of the Act, 1996 is modelled on Article 29 of the UNCITRAL Model Law. Section 29
provides method of decision making by panel of arbitrators. Such decisions are mainly of two
types. (a) the substance of the dispute and (b) the procedure.
If, there is a sole arbitrator, such decisions are to be taken by such a sole arbitrator. The presence
of arbitrators at same place, while making decision is not necessary. Thus, the arbitrators may
make their decision by modern means of communication such as telex, telephone and fax etc.
In J. Kuppuswami v. Anantharaman27, the Madras HC observed that it is the requirement of law

that all the arbitrators must deliver their united consideration pertaining to the subject-matter of
dispute in arbitration which had been referred to them for making of decision as to the arbitral
award.
TIME LIMIT FOR MAKING AN ARBITRAL AWARD

One of the main objectives of the amendments made was to make provisions for timely
completion of arbitral proceedings. Section 29A of The Arbitration and Conciliation Act, 1996, 28
provides for the time limit for making an arbitral award. To fulfill this objective the amended act
has set the time limit for arbitral award. Section 29A(1) of The Arbitration and Conciliation Act,
199629 requires that the award shall be made within a period of 12 months from the date of
completion of pleadings under sub-section (4) of section 23. The arbitral tribunal shall be
deemed to have entered upon the reference on the date on which the arbitrator or all the
arbitrators, have received notice in writing of their appointment.
This period can be further extended at maximum by six months by the consent of the parties
under dispute for making an arbitral award.30 If the arbitral award is not made within the period
specified or specified extended period, the mandate of the arbitrator(s) shall terminate unless the
court has either prior to or expiry of the period specified, extended the period. 31 Such extension
may be on the application of any of the parties and may be granted only for sufficient cause and
on such terms and conditions as may be imposed by Court. 32 Where an application under sub-
27
1947 (1) M.L.J. 297.
28
Ins. by the Arbitration & Conciliation (Amendment) Act 2015 (Act 3 of 2016), s. 15 (w.e.f. 23-10-2015).
29
Subs. by Act 33 of 2019, s. 6, for sub-section (1) (w.e.f. 30-8-2019)
30
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 29A(3).
31
32
22
section (5) of section 29A of the Act is pending, the mandate of the arbitrator shall continue till
the disposal of the said application.33
Further while extending the period referred to in section 29A(4), it shall be open to the Court to
substitute one or all arbitrators and if one or all the arbitrators are substituted, in such a case, the
arbitral proceedings shall continue from the stage already reached and on the basis of the
evidence and material already on record.34
As a measure to penalize arbitrators for inordinate delay, the proviso of section 29A(4) provides
that while extending the period, if the Court finds that the proceedings have been delayed for the
reasons attributable to the arbitral tribunal, then it may order reduction of fees of arbitrator(s) by
not exceeding five percent for each month of such delay. Proviso of section 29A(4) of the Act
further provides that arbitrator shall be given an opportunity of being heard before the fees is
reduced.35 Court may also impose actual or exemplary costs upon any of the parties. 36 To further
incentivize the arbitration tribunal for speedy disposition of dispute, sub-section 2 of section
29A, entitles arbitration tribunal to receive additional fees as agreed by the parties, if the case is
disputed within a period of six months.
In MBL Infrastructures Ltd. v. Rites Limited,37 the Court held that it is clear from a bare reading
of the Arbitration & Conciliation (Amendment) Act, that it does not have a retrospective effect
and thus, amended Section 29A of the Arbitration Act will not be applicable on pending
arbitrations as on the date of the amendment.
In Shapoorji Pallonji and Co. Pvt. Ltd. v. Jindal India Thermal Power Limited,38 the Court held
that amended section 29A(1) of the Arbitration and Conciliation Act, being procedural law,
would apply to pending arbitrations as on the date of the amendment.
Both the above judgements have been pronounced by the single judge benches of the Delhi High
Court. In both the judgements there is an inconsistent view on the applicability of section 29A of
33
Inserted by the Arbitration & Conciliation (Amendment) Act, 2019. s. 6, (w.e.f. 30-8-2019).
34
35
Inserted by the Arbitration & Conciliation (Amendment) Act, 2019, s. 6, (w.e.f. 30-8-2019).
36
37
Judgment dated February 10, 2020 in OMP (Misc) (Comm.) 56/2020.
38
Judgment dated January 23, 2020 OMP (Misc.) (Comm.) 512/2019.
23
the Arbitration Act. Till now, there is no pronouncement on this issue by the larger bench of
Dehi High Court or Supreme Court.
FAST TRACK PROCEDURE

Section 29B of the Arbitration and Conciliation Act, 1996 39, allows the parties to an arbitration
agreement to agree in writing to have their dispute resolved by fast track procedure. 40 The award
made in fast track procedure is to be compulsorily made within a period of six months from the
date the arbitral tribunal enters upon the reference. 41 This can be done at any stage before or at
the time of the appointment of the Arbitral Tribunal. A sole arbitrator can be chosen by the
parties to the arbitration agreement for the resolution of disputes.42
Sub-section 3 of section 29B of The Arbitration and Conciliation Act, 1996, specifies the
procedure for fast track arbitration which are as follows:
a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents
and submissions filed by the parties without any oral hearing;
b) The arbitral tribunal shall have power to call for any further information or clarification
from the parties in addition to the pleadings and documents filed by them;
c) An oral hearing may be held only, if, all the parties make a request or if the arbitral
tribunal considers it necessary to have oral hearing for clarifying certain issues;
d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is
held, and adopt such procedure as deemed appropriate for expeditious disposal of the
case.
Under fast track procedure, if the tribunal fails to make the Award within six months, the period
may be extended by the court and all the provisions applicable in case of extension of period by
court in case where normal procedure is followed.
SETTLEMENT
The arbitral tribunal may encourage the parties to settle their dispute at any times during the
arbitration proceedings and the tribunal can take initiative and find out weather there is an
39
Ins. by the Arbitration & Conciliation (Amendment) Act 2015 (Act 3 of 2016), s. 15 (w.e.f. 23-10-2015).
40
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 29B(1).
41
42
24
element of settlement, and for this purpose it may use mediation, conciliation and other
procedures.43
In Harendra H. Mehta v. Mukesh H. Mehta,44 the apex court observed that during pendency of
arbitral proceedings parties entered into settlement, yet wanting arbitrator to pass award in terms
of settlement. It has been held that settlement arrived at between the parties did not have effect of
revoking arbitration agreement. It cannot be said that award passed was not an arbitral award
though a consent award.
In Kapila Textiles v. Madhav,45 it was held that a compromise reached between the parties cannot
be considered as an arbitral award by itself, except when the arbitral tribunal makes an award on
the basis of that compromise.
Section 30(2) of The Arbitration and Conciliation Act, 1996, lays down that if the parties make a
request before the arbitral tribunal and such a request is not objected by it and the parties arrive
at a settlement, then in such situation, the arbitral tribunal may terminate the proceedings and if
the parties so desired record the settlement in the form of arbitral award as per the agreed terms.
The arbitral tribunal is empowered to reject the request made by the parties for settlement of their
dispute, if the circumstances are opposed to the public policy in India, fraud and unfair terms of
settlement etc.
In Munshi Ram v. Bhanwarilal,46 it was held that Arbitral tribunal shall terminate the arbitral
proceedings if the parties have arrived at a settlement during the arbitral proceedings, in such
circumstances if it is so desired by the parties by a written request, the arbitral tribunal shall
record the settlement of the disputing parties in form of an arbitral award as provided under
Section 31 of the Arbitration and Conciliation Act, 1996.
Section 30(3) of The Arbitration and Conciliation Act, 1996, makes it mandatory that an arbitral
award on agreed terms shall be in the form and content as provided in Section 31 of the Act,
however, an arbitral award and an arbitral award on agreed terms have same meaning under the
Act.
43
44
1999 (5) SCC 108.
45
AIR 1963 Mys. 39.
46
AIR 1962 SC 903.
25
Section 30(4) of the Act, 1996 provides that such an arbitral award on agreed terms shall have
same status as any other award on the substance of the dispute. An arbitral award on agreed
terms will be final and enforcement of such award shall be in the same manner as decree under
the Code of Civil Procedure, 1908. On several occasions the Supreme Court and the High Courts
have also expressed their opinion that an arbitral award on agreed terms enjoy the same status
and effect as any other award and it may not be open to any party to get that award set aside on
the grounds enumerated in Section 34(2)(a) The Arbitration and Conciliation Act, 1996.47
The Supreme Court in the exercise of its power under Article 142(1) of the Constitution of India,
1950 "may pass a decree or make an order as is finds necessary for doing complete justice in any
cause or matter pending before it, and any decree passed or order so made shall be enforceable
throughout the territory of India in such manner as prescribed by or under any law made by
Parliament and the provision in that behalf is so made and in such manner as the President may
by order prescribe."
FORM AND CONTENTS OF ARBITRAL AWARD

The form and contents of arbitral award are provided under section 31 of the Arbitration and
Conciliation Acy, 1996, which are as follows:
1. Section 31(1) of The Arbitration and Conciliation Act, 1996 states that "an arbitral award
shall be made in writing and shall be signed by the members of the arbitral tribunal". In
Hindustan Construction Co. v. Union of India,48 Supreme Court explained that the word
"signing" means writing one’s name on the award. The Allahabad High Court observed
that no oral award is to be permitted under section 31(1) of The Arbitration and
Conciliation Act, 1996.49
In Dwarka Das v. India Engineering,50 the Apex Court observed that an arbitral award
must not merely be in writing but it should also be duly signed by the
arbitrators/arbitrator. If the reasons for omission of signature of other arbitrators are
mentioned in the award, an arbitral award signed by majority arbitrators would also be
47
Ram Singh v. G.A. Coop. Service Society, AIR 1976 P. & H. 99; Kiran Singh v. Chaman Paswan, AIR 1954 SC
340.
48
AIR 1976 SC 526, 527.
49
Satyapal v. Ved Prakash, AIR 1980 A1 268.
50
AIR 1972 SC 1538.
26
valid. Wherein arbitral award is made on the foundation of compromise arrived at by the
parties, in such event arbitrator’s signature in the arbitral award would be desirable.51
2. Section 31(2) of The Arbitration and Conciliation Act, 1996 states that where there is
more than one arbitrator, the signature of the majority of the arbitrators shall be
sufficient. However, in such cases, the reason for any omitted signature must be stated.
Thus, the members dissenting from an arbitral award cannot stop the award.
3. Section 31(3) states that the arbitral award shall state the reasons upon which the arbitral
award is based, unless:
a) The parties have agreed that no reasons are to be given, or
b) The award is an arbitral award on agreed terms under Section 30
Section 31(3) of the Act provides transparency and fairness in decision making by an
arbitral tribunal and to eradicate irrational manner of making an arbitral award. The
arbitral tribunal is not required to give a detailed judgment as Judges do. It has to give the
trend of its thought process. An award made by a private arbitral tribunal is to be stamped
under the Stamp Act, 1899.
In Food Corporation of India v. Great Eastern Shipping Co. Ltd.,52 Supreme Court
observed that the recent trend, in modern arbitration law, was to have reasoned awards
which was in consonance with the principle of natural justice.
In M/s. Naraindas R. Israni v. Union of India,53 the Delhi High Court observed that the
making of an arbitral award should be a reasonable process and recording the reasons
upon which the arbitral award is based shows the rationality. The court further observed
that it is often seen that unsuccessful parties will wish to know why they have been
unsuccessful. If a reasoned arbitral award is given, an unsuccessful party will be in a
deciding position to know whether he has a just cause for complaint or not.
4. Section 31(4) states that the arbitral award shall state its date and place of arbitration, as
determined in accordance with Section 20 of the Act. In an arbitral award date and place
of arbitration must be mentioned as to facilitate mainly for two purposes:
a) If, there would be an appeal against the arbitral award, or
b) For enforcement of the arbitral award.
51
Narayan Das v. Vallabhdas, AIR 1972 SC 1.
52
AIR 1988 SC 1198.
53
AIR 1993 Del. 78.
27
5. Section 31(5) of The Arbitration and Conciliation Act, 1996, states that after making of
an arbitral award by the arbitration tribunal a signed copy of the award is to be delivered
to each party and receipt of signed copy of the award is the requirement of the Act.
6. Section 31(6) provides that the arbitral tribunal may make ‘interim’ arbitral award at any
stage of the arbitration proceedings before it makes final arbitral award. In practice, a
request for interim award by a party is entertained by arbitrators, when there are
numerous subject matters in the same dispute and each one of them is separate and
distinct from the other.
Thus, under Section 31(6) interim arbitral award and arbitral award are not the same.
Therefore, an interim arbitral award would not terminate the arbitral proceedings.
7. Section 31(7) provides for interest, payable to the other party, at such rate as it deems
reasonable on the whole or any part of the money, interest shall be included in the sum
awarded in the arbitral award.
An arbitrator is competent to award interest at four stages, namely:
a) From the stage of cause of action till filing of proceedings.
b) During pendency of proceedings before the Arbitrator.
c) From the date of award and date of decree.
d) Interest arising from the date of decree till realisation of award.
In State of Hindustan Construction Co. Ltd. v. State of Jammu & Kashmir,54 the Supreme
Court has held that the Arbitrator is competent to award interest from the date of the
arbitral award
If, no rate of interest is mentioned then it shall be at the rate of two per cent per annum. It
shall also be mentioned in the award as to the interest whether it shall be payable for the
whole or any part of the period between the date, on which the cause of action arose and
the date on which the award is made.
The provision contained in Section 31(7) is not modelled on the Model Law, by which
the provisions under this sub-section (7) are to be regulated by each State. The purpose
behind such a regulation is to remove confusion caused by earlier court rulings in the
matter relating to payment of interest.
54
1992 AIR SCW 2647.
28
Section 31(7)(b) of The Arbitration and Conciliation Act, 1996, 55 prescribes interest at
the rate of two per cent per annum from the date of award to the date of payment, so that
the parties cannot take recourse of malicious practices by delay, however, the rate of
interest is subject to review from time to time according to Section 31(7) enactment.
8. Section 31(8) of The Arbitration and Conciliation Act, 1996,56 lays down provision about
the costs to be awarded by the arbitral tribunal. The arbitral tribunal has to specify the
followings:
a) which party is entitled to costs;
b) which party shall pay the costs;
c) the amount of costs; and
d) by which method the costs is determined.
Sub-section (8) of Section 31 of the Arbitration and Conciliation Act, 1996 confers
powers on the arbitrators to fix and award costs of arbitration, in accordance with said
provision. In Mohammed Akbar v. Attar Singh,57 the privy council held that the award of
arbitration costs is a discretionary power of the arbitral tribunal. Thus, it is the tribunal
which is required to determine the costs of an arbitration.
In Charan Sharan Khemka v. Achint Chemicals,58 it was held that section 31 of the Act, 1996
provides certain criteria, which is to be followed by the arbitrator while making an arbitral
award.
In Union of India v. M/S Raymus Porta Buildings Ltd.,59 the Himachal Pradesh High Court ruled
that a non-speaking award would not be in consonance with provisions of Section 31 of the Act
which says that award should be speaking one. Whether reasons given by the Arbitrator were
valid or not would be different matter. Hence, arbitral award is invalid.
55
Subs. by s. 16, of the Arbitration & Conciliation (Amendment) Act 2015 (Act 3 of 2016), for clause (b) (w.e.f. 23-
10-2015).
56
Subs. by s. 16 of the Arbitration & Conciliation (Amendment) Act 2015 (Act 3 of 2016), for sub-section (8)
(w.e.f. 23-10-2015).
57
AIR 1945 PC 170.
58
2005 M (2) Raj 465 (Raj.).
59
AIR 2007 (NOC) 1606 (H.P.).
29
COST OF THE PROCEEDING
The amended section 31(8) of the Act provides that the cost of an arbitration proceeding shall be
fixed by the Arbitral Tribunal in accordance with the Act. Section 31A of The Arbitration and
Conciliation Act, 1996,60 empowers the arbitral tribunal to have the discretion to determine the
cost would mean reasonable costs relating to following:
a) The fees and expenses of the arbitrators, Courts and witnesses;

b) Legal fees and expenses;
c) Any administration fees of the institution supervising the arbitration; and
d) Any other expenses incurred in connection with the arbitral or Court proceedings and the
arbitral award.
Section 31A(1) of The Arbitration and Conciliation Act, 1996, states that In relation to any
arbitration proceeding or a proceeding under any of the provisions of this Act pertaining to the
arbitration, the Court or arbitral tribunal, notwithstanding anything contained in the Code of
Civil Procedure,1908 (5 of 1908), shall have the discretion to determine:
a) Whether costs are payable by one party to another;

b) The amount of such costs; and
c) When such costs are to be paid.
If the Court or arbitral tribunal decides to make an order as to payment of costs:61
a) The general rule is that the unsuccessful party shall be ordered to path costs of the
successful party; or
b) The Court or arbitral tribunal may make a different order for reasons to be recorded in
writing.
This is in order to discourage frivolous claims, the ‘loser pays’ principle, common to dispute
resolution procedures in other jurisdictions, will now apply to any costs orders made by tribunals
in relation to the parties’ legal fees and expenses and the cost of the arbitration. However, the
Court or Arbitral Tribunal may make a different order for reasons to be recorded in writing.
60
Ins. by s.17 of the Arbitration & Conciliation (Amendment) Act 2015 (Act 3 of 2016 (w.e.f. 23-10-2015).
61
30
Section 31A(3) of The Arbitration and Conciliation Act, 1996 states that in determining the
costs, the Court or arbitral tribunal shall have regard to all the circumstances, including:
a) The conduct of all the parties;

b) Whether a party has succeeded partly in the case;
c) Whether the party had made a frivolous counterclaim leading to delaying the disposal of
the arbitral proceedings; and
d) Weather any reasonable offer to settle the dispute is made by a party and refused by the
other party.
Notwithstanding anything stated above, the Court or arbitral tribunal may make any order under
this section including the order that a party shall pay:62
a) A proportion of another party’s costs;

b) A stated amount in respect of another party’s costs;
c) Costs from or until a certain date only;
d) Costs incurred before proceedings have begun;
e) Costs relating to particular steps taken in the proceedings;
f) Costs relating only to a distinct part of the proceedings; and
g) Interest on costs from or until a certain date.
Sub-section 5 of section 31A of the Act states that an agreement which has the effect that a party
is to pay the whole or part of the costs of the arbitration in any event shall be only valid if such
agreement is made after the dispute in question has arisen.
In M/s Morgan Securities & Credits Pvt. Ltd. v. Videocon Industries Ltd.,63 the Court held that it
shall be assumed that the arbitrator has granted the post award interest only on the principal sum
with full intent and arbitrator while granting post award interest, was mindful of the respective
claims of the parties and the relevant merits and demerits of the please were taken before him.
The equities required to be balanced between the parties and all other relevant factors to be taken
into account for granting the rate of interest as awarded. The Court further held that the view
62
63
Judgement dated February 26, 2020 in FAO(OS) (COMM) 9/2020.
31
taken by the Arbitrator for granting the rate of interest cannot be treated as patently illegal or
perverse so as to go to the root of the matter.
In Jaiprakash Associated Ltd. v. Tehri Hydro Development,64 it was held that if the agrrement
between the parties specifically prohibits grant of interest, the arbitrator cannot award pendent
elite interest in such cases.
ADDITIONAL AWARD
Section 33 of The Arbitration and Conciliation Act, 1996 deals with the correction and
interpretation of award and additional award. Section 33(1) of The Arbitration and Conciliation
Act, 1996, states that within thirty days from the receipt of the arbitral award, unless another
period of time has been agreed upon by the parties—
a) A party, with notice to the other party, may request the arbitral tribunal to correct any
computation errors, any clerical or typographical errors or any other errors of a similar
nature occurring in the award;
b) If agreed by the parties, a party, with notice to the other party, may request the arbitral
tribunal to give an interpretation of a specific point or part of the award.
c) If the arbitral tribunal considers the request made under
Section 33(2) of The Arbitration and Conciliation Act, 1996, states that if the arbitral tribunal
considers that the request made under section 33(1) of the Arbitration Act is on justifiable
grounds, then it shall correct the mistake or give the interpretation within thirty days from the
receipt of the request and that correction or interpretation of the arbitral award shall form part of
the arbitral award.
If something remained undecided or left out in an arbitral award from the claim presented in the
arbitral proceedings, the aggrieved party with notice to other party may request the arbitral
tribunal to make an additional award. The aggrieved party can make a request within thirty days
from the receipt unless the parties have agreed to different time period. 65 The request made for
making an additional arbitral award to the arbitral tribunal must be on justifiable grounds. 66 The
arbitral tribunal shall make an additional award within sixty days of the receipt of the request
64
Judgement dated February 7, 2019 in CIVIL APPEAL NO(S). 1539 OF 2019.
65
66
32
provided.67 If required this period can be extended by the arbitral tribunal. 68 Section 31 of The
Arbitration and Conciliation Act, 1996, shall be applied on the correction or interpretation of an
arbitral award or on making of an arbitral award as the case may be.69
In R. Murlidhar v. NPCC,70 the Delhi High Court held that wherein an arbitral tribunal made an
arbitral award on the matter of disputes referred to it, the court will presume that that the arbitral
award made by an arbitral tribunal is valid and an arbitrator has taken into consideration all the
subject matter of disputes referred to him.
In Gobardhan Das v. Lakshmi Ram,71 the court observed that It is settled rule of interpretation
that an arbitral award should be construed liberally and wholly, but not in isolation, thus, to give
effect to the real intention of the arbitral tribunal.
In Rikhadas v. Ballabhdas,72 before the Supreme Court, an arbitrator submitted his award
without using proper stamps and one of the questions was weather the award could be sent back
to the arbitrator for rectifying this error. The court held that the provision as to rectification is not
applicable.
TERMINATION OF PROCEEDINGS
Section 32 of the Arbitration and Conciliation Act, 1996 is modeled on the pattern of Article 32
of the Section 32(1) of the Arbitration and Conciliation Act, 1996 UNCITRAL Model Law.
Section 32 of the Act provides conditions and procedure for the termination of proceedings.
Section 32(1) of the Arbitration and Conciliation Act, 1996 provides two conditions and if either
of the condition is fulfilled then arbitral proceedings are terminated these two conditions are as
follows:
a) When the final award has been made,

b) By an order of an arbitral tribunal as provided under section33(2) of the Act.
Thus, section 33(1) talks about automatic termination and termination by the Arbitral tribunal.
67
Ibid.
68
69
70
AIR 1993 Del. 68.
71
AIR 1954 SC 689.
72
AIR 1962 SC 551.
33
Section 32(2) of the Arbitration and Conciliation Act, 1996 provides those conditions, when the
arbitral tribunal may be order terminate the arbitral proceedings. Those conditions are as follows:
a) When the claimant withdraws his disputed case, but an order will not be passed if the
respondent objects and the arbitral tribunal recognizes his legitimate interest in obtaining
a final settlement of the dispute.
b) When both the parties have mutually agreed on the termination of arbitral proceedings.
c) When arbitral tribunal finds that it has become unnecessary and impossible for any other
reason to continue arbitral proceedings.
The mandate or authority of the arbitral tribunal shall come to an end with the termination of
arbitral proceedings except in the following cases:73
1. When arbitral proceedings have been initiated under section 33 of the Act for
a) Correction of errors
b) Interpretation of the arbitral award
c) For making an additional award
2. When proceedings for setting aside an award under section 34(1) have been adjourned by
the court to enable the arbitral tribunal to take action to eliminate the grounds for setting
aside an arbitral award.74
In SREI Infrastructure Finance Limited v. Tuff Drilling Private Limited,75 the court held that no
recall application can be filed in the cases covered under section 32(3) of the Arbitration and
Conciliation act, 1996
In Sai Babu v. M/S Clariya Steels Pvt. Ltd.,76 the court held that if the arbitration proceeding was
terminated by the arbitrator under section 32(2)(c), such termination cannot be recalled.
In Sudhir Kumar v. J.N. Chemicals,77 on the basis of agreement all the subject-matters of
disputes were referred to the arbitration, which were finally adjudicated by the award. It was held
73
74
75
(2018) 11 SCC 470.
76
Judgement dated May 1, 2019.
77
AIR 1985 Cal. 454.
34
that since agreement ceases to operate and merges in the award, hence no second award can be
made on the foundation of that agreement.
RECOURSE AGAINST AN ARBITRAL AWARD

Section 34 of The Arbitration and Conciliation Act, 1996, provides that a dissatisfied party on
the following grounds may apply to the court for setting aside an arbitral award. There is no
special
APPLICATION FOR SETTING ASIDE AN AWARD
Section 34(1) of The Arbitration and Conciliation Act, 1996, provides that an application for
setting aside the arbitral award may be made to a Court, in accordance with sub-section (2) and
sub-section (3) of section 34 of the Act. There is no prescribed form required for an application
to the Court for setting aside an arbitral award. However, section 34(5) of The Arbitration and
Conciliation Act, 1996,78 requires that that the party shall issue a prior notice to other party
before filing an application and such application should be accompanied by the affidavit
according to the said requirements.
Section 34(6) of The Arbitration and Conciliation Act, 1996, provides that the application filed
for setting aside an arbitral award must be disposed of as early as possible within a time period of
one year from the date on which the notice has been issued to other party under section 34(5).79
Section 34(3) of The Arbitration and Conciliation Act, 1996, provides that the application for
challenging an arbitral award should be made within a period of three months. The time period
of three months is calculated from the date on which the arbitral award has been made or from
the date on which arbitral award has been disposed of on the request that has been made under
section 33 of the Arbitration Act.
The proviso of section 34(3) of The Arbitration and Conciliation Act, 1996, provides that when
the court finds that the party has been prevented by sufficient reason for not filing an application,
then in such a case the court may allow party to file an application within a further extended time
period of thirty days but not thereafter.
78
Ins. by the Arbitration & Conciliation (Amendment) Act, 2015 (Act 3 of 2016), s. 18 for the Explanation
(w.e.f.23-10-2015).
79
Ibid.
35
In Brijendra Nath v. Mayank,80 the court held that if the arbitral award has been enforced by the
parties during the pendency of the application challenging the validity of an arbitral award, it
amounts to estoppel.
In National Aluminum Co. Ltd. v. Presteel Fabrication (P) Ltd.,81 it was that the proceedings
initiated before SC under the wrong presumption that it had jurisdiction to set aside an award,
was the sufficient reason for delay.
In UOI v. M/S Jcb India Ltd.,82 it was held that the time period for filing a application to set aside
an award an award under section 34(3) of the Arbitration Act will not be extended by a
subsequent filing before a wrong forum when the initial filing was itself beyond the prescribed
period of limitation. It was also held that section 14 of the Limitation Act, 1953, would not come
to the rescue of the party in such a case.
GROUNDS FOR SETTING ASIDE AN AWARD
The court may set aside an arbitral award on the basis of the application filed by the party
furnishing proof that:83
1. A party is under some incapacity, [s. 34(2)(a)(i)]

2. Arbitration agreement is invalid under law to which the parties are subjected to, (s. 34(2)
(a)(ii)]
3. Party was not given proper notice of the arbitral proceedings or the appointment of
arbitrator or was unable to present the case, , [s. 34(2)(a)(iii)]
4. Arbitral award deals with a dispute: [s. 34(2)(a)(iv)]
a. not contemplated by the reference or
b. not falling within the terms of reference or
c. it contains a decision in matters beyond the reference
5. the composition of arbitral tribunal is not in accordance with the agreement or the
procedure agreed in agreement by the parties was not followed in the conduct of arbitral
proceedings, unless such agreement is in conflict with the provisions of Part I of the
80
AIR 1994 SC 2562.
81
(2004) 1 SCC 540.
82
Judgement dated September 27, 2019 in FAO(OS) (COMM) 44/2019 & CM APPL. 9200/2019 (stay).
83
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 34(2)(a).
36
Arbitration and Conciliation Act, 1996, or in the absence of the agreement to procedure,
the prescribed procedure in Part I of the Act was not followed. [s. 34(2)(a)(v)]
The court may itself decide to set aside an arbitral award, if it finds that: 84 the subject matter of
dispute cannot be settled trough arbitration proceedings under the law for the time being in force.
1. The arbitral award made is in contradiction to the public policy of India.
Section 2A of The Arbitration and Conciliation Act, 1996 provides that the court may set aside
an arbitral award if it finds that the arbitral award made through arbitration other than
international commercial arbitration is vitiated by patent illegality appearing on the face of the
arbitral award.
In Oil and Natural Gas Corporation Ltd. v. SAW Pipes Ltd.,85 the SC explained the phrase
“public policy of India” is not required to be given narrow meaning as it is capable of narrow or
wide meaning depending upon the purpose and object of law.
In UOI v. G.l. Litmus Events Pvt. Ltd.,86 it was held that the doctrine of estoppel by conduct can
be invoked by the arbitral tribunal while the waiver is based on conduct.
In State of Bihar & Ors. v. Bihar Rajya Bank Bhumi Samiti,87 the Supreme Court held that the
require of prior notice under section 34(5) of the Act to the other party before filing an
application to set aside an arbitral award is a directory.
In Radha Chemicals v. UOI,88 the Supreme Court held that while deciding a petition filed under
section 34 of the Act, the court has no jurisdiction to give the matter to arbitration again for a
fresh decision.
In Union of India v. Om Prakash Baldev Krishna89, the court held that a non-reasoned award can
be set aside by the court as observed by Section 31(3) of the Act, which requires that the reasons
shall be stated upon which an arbitral award has been made unless the parties have mutually
agreed that no reasons are to be stated.
84
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 34(2)(b).
85
AIR 2003 SC 2629.
86
Judgement dated September 30, 2019 in O.M.P. (COMM) 390/2018.
87
Judgement dated July 30, 2018 in CIVIL APPEAL NO. 7314 of 2018.
88
Judgement dated October 10, 2018 in CIVIL APPEAL NO. 10386 OF 2018
89
AIR 2000 J&K 79.
37
In ONGC Ltd. v. Saw Pipe Ltd.,90 the court held that the arbitral tribunal while exercising
jurisdiction cannot breach any provisions of substantive law or the provisions of the Arbitration
Act.
In Sushil Ansal v. Union of India,91 it was said that ii is a settled law that the place where the
parties have entered into the arbitration agreement, that court has jurisdiction to entertain the
application filed under section 3 of the Arbitration Act.
REMISSION BY ARBITRAL TRIBUNAL
Section 34(4) of the Arbitration and Conciliation Act, 1996, provides that when an application
has been made for setting aside an arbitral award, the court may instead of adjudicating upon the
grounds raised, adjourn the proceedings for a determined time period to enable the tribunal to
deal with the grounds on which objection have been raised and to eliminate them.
In Tamilnadu Electricity Board v. Bridge Tunnel Constructions,92 the court held that where an
award is influenced by an error of jurisdiction, the court may send it back to the arbitrator for
rectification of the error.
FINALITY OF AN ARBITRAL AWARD

Section 35 of Act, 1996 contains essence as, contained in paragraph 7 of the First Schedule of
the Arbitration Act, 1940. Section 35 of the Arbitration and Conciliation Act, 1996 states that
subject to this Part an arbitral award shall be final and binding on the parties and any other
persons claiming under them respectively. An arbitral award will achieve finality, if it is not
challenged after the expiry of period of time provided under section 34(3) of the Act.
This provision makes the award binding on the parties and the persons who are claiming under
them. The arbitral award becomes final in the sense that there can neither be a further award on
the same subject nor an appeal against the finality of the award. The aggrieved party can apply to
the court, if there is a ground for setting aside an award, but the court cannot be called upon to
decide the matter.
90
AIR 2003 SC 2629.
91
AIR 1980 Del. 43.
92
[1997] INSC 178 (18 February 1997).
38
FINAL AWARD CAN BE CHALLENGED ON THE GROUND OF LACK OF
JURISDICTION
In R.K Textiles v. Sulabh Textiles Ltd.,93 the Bombay High Court held that an award which has
become final and binding can be questioned before the executing Cou only on the ground of lack
of jurisdiction and not on any other ground. The Court explained that the lack of jurisdiction
should be lack of inherent jurisdiction rendering the award to be non-est or nullity
RIGHTS AND LIABILITES OF THE PARTIES TO BE DECIDED ON THE BASIS OF

AWARD
It is a well settled rule that when arbitral award becomes final the rights and liabilities of the
parties are to be determined in accordance with the said arbitral award. All claims which are the
matter of a reference to arbitration are merged in a valid arbitral award. Subsequently, no action
can be commenced on the original claim which had been the subject-matter of the arbitral
proceedings.94
An arbitral award may, in effect, declare, extinguish, limit, title or interest, whether it is present
or future, whether vested or contingent, and if the value of the immovable property is one
hundred rupees and more it is to be mandatorily registered u/s 17(1)(b) of the Registration Act,
1908.95
MUST BE LEGAL
The arbitral award must be in accordance with the principles of the relevant law, otherwise it will
be illegal, being against the law. Thus, where an arbitrator awarded ownership in perpetuity, it
was held to be void as offending the rule against perpetuity.
MUST BE REASONABLE AND POSSIBLE
An award requiring a party to do an act which is unreasonable or not possible, is bad. An award
that one of the parties should do a thing which is out of his power to do, or to deliver up a thing
which is in the custody of other person, is void, as it requires the party to do an impossible.
93
2003 Arb. LR 303 (Bom.).
94
George v. Secretary to Government, Water and Supply Department Trivandrum, AIR 1990 SC 53.
95
Satish Kumar v. Surinder Kumar, AIR 1970 SC 833.
39
MUST DISPOSE OF MATTERS
An arbitral award should be a complete decision on disputes which requires determination. An

award which leaves some of the question undecided cannot be enforced.
FINALITY, EFFECT AND ENFORCEMENT OF AN AWARD
The arbitrator’s power over the matter submitted to him is complete and final. He has the power
to do what the court could have done if the matter had been before the court. The court will not
interfere with the findings of the arbitrator even if the court feels on the merits that the arbitrator
should have come to a different conclusion. His arbitral award on both fact and law will be
considered final. There is no appeal from his verdict. The court cannot review his order and
correct any mistake in his adjudication unless an objection to the validity of the award is
apparent on the face of the award.
In UOI v. Bungo Steel Furniture (P) Ltd.,96 the court said that the law for many years have been
settled, and remains so at this day, that where a cause on matters in difference are referred to an
arbitrator, where a lawyer or layman, he is constituted the sole and final judge of all the
questions both of law and of fact. The only exception to that rule is, the cases where the award is
the result of the corruption or fraud.
ENFORCEMENT OF AN ARBITRAL AWARD

A domestic award is an award passed under the provisions of Section 2 to 43 of the Part I of the
Arbitration and Conciliation Act, 1996.97 The domestic arbitral award is an award made under
the territory of India, the parties should have a nexus or birth to Indian origin. Domestic arbitral
award is the result of the domestic arbitration. Award made by arbitral tribunal in India or an
award given by a foreign for a subject matter in dispute, where both the parties are of Indian
origin and their nationality is also governed by Indian laws shall also come within the purview of
domestic arbitration.98
96
(1967) 1 SCR 324.
97
98
http://shodhganga.inflibnet.ac.in/bitstream/10603/110130/16/16_chapter%206.pdf
40
Section 36 of The Arbitration and Conciliation Act, 1996 provides for direct enforcement of
award without having to get them converted into a rule of court. Section 36 of The Arbitration
and Conciliation Act, 1996 reads as follows:’
1) Where the time period for making an application to set aside the arbitral award under
section 34 of The Arbitration and Conciliation Act, 1996 has expired, then, subject to the
provisions mentioned in section 36(2) of the Arbitration Act, such award shall be
enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of
1908), in the same manner as if it were a decree of the court.
2) Where an application to set aside the arbitral award has been filed in theCourt under
section 34, the filing of such an application shall not by itself render that award
unenforceable, unless the Court grants an order of stay of the operation of the said arbitral
award in accordance with the provisions of sub-section (3), on a separate application
made for that purpose.
3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral
award, the Court may, subject to such conditions as it may deem fit, grant stay of the
operation of such award for reasons to be recorded in writing:
Provided that the Court shall, while considering the application for grant of stay in the case of an
arbitral award for payment of money, have due regard to the provisions for grant of stay of a
money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908)
In BCCI v, Kochi Cricket Private Ltd.,99 the court held that the 2015 amendment to section 36
will apply only to:
a) Arbitral proceedings commenced on or after October 23, 2015 (date of commencement of

the Amendment Act),
b) Arbitration related court proceedings filed on or after October 23, 2015, even where the
arbitral proceedings had been commenced before the amendment came into force.
99
AIR 2018 SC 183.
41
In Pam Developments Pvt. Ltd. v. State of West Bengal,100 the court held that the Arbitration Act
mandates equal treatment of the parties to the arbitration. The government cannot be given any
special treatment while considering an application for stay of the award.
In Delhi Development Authority v. Ashok Kumar & Co.,101 the court held that once the award is
treated as a decree in terms of section 36 of the Arbitration Act and once the executing court has
been moved for the execution of such an award, the application for the restoration of the said
amount under section 144, Code of Civil Procedure, 1908, will be heard by the same court.
ENFORCEMENT OF CERTAIN FOREIGN AWARDS

international commercial arbitration has crossed the national boundaries and usually have a
foreign element. One of the problems faced in such conditions is the recognition and
enforcement of foreign arbitral award. The award is made in one country and the same has to be
enforced in the other country. Each country has different set of laws. This deficiency was
removed through international conventions particularly:
a) Geneva Convention 1927

b) New York Convention, 1958
Part II of The Arbitration and Conciliation Act, 1996, contains two Chapters which deals with
the recognition and enforcement of certain foreign arbitral award. Chapter I deals with foreign
award under New York Convention and Chapter II deals with foreign award underGeneva
Convention Awards.
In Renusagar Power Co. v. G.E.C.,102 the Apex Court observed that New York Convention is an
improvement on the Geneva Convention in the sense that it provides for a similar and effective
method for recognition and enforcement of foreign arbitral awards and between the states which
are parties to both the conventions, the New York Convention replace Geneva Convention.
NEW YORK CONVENTION

MEANING OF FOREIGN AWARD
100
Judgement dated July 12, 2019 in Civil Appeal No. 5433 of 2019.
101
Judgment dated 05.08.2019 in C.M. (M) 264/2017.
102
(1994) 81 Comapnay Cases 171.
42
Section 44 of The Arbitration and Conciliation Act, 1996 defines the term foreign arbitral award.
Foreign award means an arbitral award which relates to the differences between persons arising
out of legal relationships relating to the matters, weather contractual or not, considered
commercial under the law in force in India, made on or after October 11, 1960:
a) in pursuance of an agreement in writing for arbitration to which the Convention set forth
in the First Schedule applies, and
b) in one of such territories as the Central Government, being satisfied that reciprocal
provisions have been made may, by notification in the Official Gazette, declare to be
territories to which the said Convention applies.
In Serajuddin v. Michael Golodetz,103 the Calcutta HC laid down the necessary conditions
relating to the term "foreign arbitration". These are as follows:
a) arbitration should have been held in foreign coumtry, by a foreign arbitrator;

b) arbitration have been done by applying foreign laws;
c) a foreign national party is involved.
These are essential elements of a foreign arbitration, resulting into the foreign award.
In N.T.P.C. v. Singer Company,104 the Supreme Court observed that where in London an interim
award was made which arose out of an arbitration agreement governed by the Indian Laws. It
was held that such an arbitral award cannot be treated as a foreign award and it is purely a
"domestic award" which is governed by the laws of India in respect of the agreement and
arbitration
In Bhatia International v. Bulk Trading S.A.,105 the Supreme Court observed that awards in
arbitration proceedings which take place in a nonconvention country are not considered to be
"foreign award" under the Arbitration and Conciliation Act, 1996.
In R.M. Investment & Trading Co. Pvt. Ltd. v. Boeing Co.,106 the Supreme Court observed that
the term "Commercial arbitration" in the context of foreign awards should be construed broadly
103
AIR 1960 Cal. 49.
104
AIR 1993 SC 998.
105
AIR 2002 SC 1432.
106
AIR 1994 SC 1136.
43
having regard to the New York Convention Awards and also manifold activities which are
necessary elements of modern international trade and commerce. It was held that the agreement
between the Indian Company and foreign company whereunder the Indian Company agreed to
provide the foreign company with consultant service for promotion of sale of Boeing Aircrafts in
India was involving commercial relationship within the meaning of Section 44.107
POWER OF JUDICIAL AUTHORITY TO REFER PARTIES TO ARBITRATION
Section 45 of The Arbitration and Conciliation Act, 1996 states that Notwithstanding anything
contained in Part I of the Arbitration Act or in the Code of Civil Procedure, 1908 (5 of 1908), a
judicial authority, when seized of an action in a matter in respect of which the parties have made
an agreement referred to in section 44, shall, at the request of one of the parties or any other
person claiming through or under him, refer the parties to arbitration, (unless it prima facie
finds)108 that the said agreement is null and void, inoperative or incapable of being performed.
In Renusagar Power Co. Ltd. v. General Electric Co.,109 the Apex Court observed that Section
45 uses the expression "shall" which denotes that the judicial authority is under obligation to
refer the parties to arbitration, provisions of Part I and the provisions of the Code of Civil
Procedure over are opposed to the provision contained in the present Act.
In Goyal MG Gases Ltd. v. Griesheim GMBH,110 the court observed that the provisions of
Section 45 of the new Act, 1996 are clear and apparent that the judicial authority when seized of
an action in a matter in respect of which the parties have made an agreement in the nature of and
as provided under Section 44 refer the parties to arbitration at the request of one of the parties or
any other person claiming through or under him.
In Owners and Parties Interested in Vessel M.V. Baltic Confidence & another v. State Trading
Corporation of India Ltd.,111 it was held that when the arbitration clause of the Charter party
agreement (clause 62) has been incorporated in the Bill of Lading by specific reference by its
107
R.M. Investment & Trading Co. Pvt. Ltd. v. Boeing Co., AIR 1994 SC 1136.
108
Subs. by The Arbitration and Conciliation (Amendment) Act 2019 (Act 33 of 2019), s. 11, for “unless it finds”
(w.e.f. 30-8-2019).
109
AIR 1985 SC 1156;
110
1999 (2) R.A.J. 5 (Delhi).
111
2001 (6) S u prem e 282 (SC).
44
clause (1) then it shows that the parties had intended that the disputes arising on the Bill of
Lading should be resolved by arbitrator.
In Indian Organic Chemicals Ltd. v. Chemtex Fibres Inc.,112 the Bombay HC has held that
possibility of conflicting awards would merely make invocation of the arbitral provisions
undesirable or improper or inexpedient. So, that would not be the same thing as "incapable of
being performed" within the meaning of the said expression occurring in the section.
In Jes & Ben Group Pvt. Ltd. v. Hell Magyarorzag Kft. & Ors.,113 it was held that the court must
take a prima facie view objectively on the basis of the material and evidences produced by the
parties on the record of the case. The parties must be given full opportunities to lead whatever
evidence they want to. It was held that the allegation of fraud simpliciter cannot nullify the effect
of the arbitration agreement. It was reiterated by the court that a non-signatory to the arbitration
agreement can be referred to arbitration if the cause of action is arising out of one agreement and
the disputes arise out of the same contract. It was further held that the plea of unequal bargaining
power cannot be raise to avoid arbitration where both the parties are the people who have
expertise in the field and the contract is a commercial transaction.
In Spentex Industries Ltd. v. Queen Emanuel Urquhart & Sullivan LLP,114 the HC of Delhi held
that the relationship between a client and the foreign law was commercial in nature in terms of
section 45 and 46 of the Act.
WHEN FOREIGN AWARD BINDING
Section 46 deals with the binding nature of foreign awards. Section 46 is enacted parallel with
Article III of the New York Convention and is on the pattern of Section 4(2) of the 1961 Act.
Section 46 has been incorporated with a liberal object to recognise all the "Foreign Awards"
under this Chapter to be enforceable in India, by way of defence, set-off or in any legal
proceedings in India. The foreign arbitral award shall be treated as binding for all purposes upon
the parties between whom it was made, These parties may rely on such a foreign award by way
of claim, defence, set- off and in any legal proceedings initiated in India.
112
AIR 1978 Bom. 106.
113
Judgement dated 23.09.2019 in CS (COMM) 257/2019.
114
Judgement dated May 12, 2020 in CS(OS) 568/2017.
45
EVIDENCE
Section 47 provides specified conditions to be fulfilled by the party, who is seeking enforcement
of a foreign award. It is a mandatory provision. Thus, Section 47 prescribes the evidence the
party has to be made prima facie before the Court for enforcement of a foreign award.
Section 47(1) of The Arbitration and Conciliation Act, 1996, provides that the following
documentary evidences have to be produced before the Court, at the time of application for the
enforcement of a foreign award, by a party are as follows:
a) Original award or a copy of it, which should be authenticated according to the law of that
country in which it was made.
b) The original agreement for arbitration or a certified copy of arbitration agreement, and
c) Such other evidence as may be necessary to show that the award is a foreign award.
Section 47(2) provides that if such an award is in foreign language or arbitration agreement is in
foreign language, its translated copies should be produced in English. It is required that such
translated copies must be certified as correct translation by a diplomatic or consular agent of the
country to which that party belongs or certified as correct in such other manner as may be
sufficient according to the law of India, in force.
The Gujarat High Court was of the view that a foreign award can be enforced at any time, though
a domestic award can be enforced only within specified time limit. 115 Thus, the Limitation Act
may be applied in the same way as applied to court proceedings.
In Ludwig Wumsche & Co. v. Raunak International Ltd.,116 the Delhi High Court is of the
opinion that as Part II does not prescribe any time limit for the enforcement of foreign arbitral
award, the Limitation Act, 1963, being an integral part of the procedural law of India, applies.
In SBS Logistics Singapore Pvt. Ltd. v. SBS Transpole Logistics Private Limited,117 it was held
that unless the conditions imposed and the manner of granting adjournments are completely
outrageous and unconscionable, it cannot be a ground for refusing enforcement of foreign award
under section 47 of the Arbitration Act. It was also held that agreements which provides for
115
Orient Middle East Lines Ltd. v. M/s. Brace Transport Corpn. of Monrovia, AIR 1986 Guj 62, 74.
116
AIR 1983 Del 247, 250.
117
Judgment dated 16.09.2019 in O.M.P. (EFA) (COMM.) 4/2018.
46
seeking a recourse to negotiations to resolve the dispute amicably before proceeding for
arbitration cannot be used as a means to delay the arbitration proceedings.
In M/s. Fuerst Day Lawson Ltd. v. Jindal Exports Ltd.,118 the Supreme Court held that a foreign
award given after the commencement of Arbitration and Conciliation Act, 1996, though arbitral
proceedings might have commenced before its commencement, can be enforced only under
Arbitration and Conciliation Act, 1996.
CONDITIONS FOR ENFORCEMENT OF FOREIGN AWARDS
Section 48(1) of The Arbitration and Conciliation Act, 1996, says that enforcement of foreign
arbitral award may be refused when the request has been made by the party against whom it is
applied but that party is required to submit certain proof regarding his revocation which are as
follows:
a) If the parties made an arbitration agreement under Section 44 in compliance of law

applied to the parties, but under some incapacity or that an arbitration agreement becomes
invalid under the law to the parties have subjected it and also contrary to law of the
country, where the award was made, in such cases the court may refuse to enforce a
foreign award by order.
b) The party who has been aggrieved and against whom the award is made was not given
proper notice of the appointment of the arbitrator or the arbitral proceedings or not being
given proper opportunity for presentation of his case in the arbitration.
c) To ensure that the award made is valid award, it must deal only with questions actually
submitted to the arbitral tribunal by the parties. In other words if the award has
contemplated differences not referred to the arbitral tribunal it cannot be enforced and is
liable to be refused. Thus, an arbitral tribunal must confine its jurisdiction to the terms of
submission.
d) The composition of arbitral authority or the arbitral procedure is inconsistent with the
agreement of the parties or contrary to the law of the country where the arbitration took
place.
118
2001 (4) Supreme 141.
47
e) The award has not become binding on the parties or has been set aside or suspended by a
competent authority of the concerened country, or under the law of which that award was
made.
Section 48(2) of The Arbitration and Conciliation Act, 1996, states additional ground in term of
vested powers to the court to refuse enforcement of an arbitral award. The court may refuse
enforcement of arbitral award if it finds that:
a) The subject-matter of the difference between the parties is not capable of settlement by
arbitration under the law of India, or
b) If the enforcement of such a foreign award is opposed to the public policy of India.
An arbitral award is in conflict with the public policy of India, only if:119
a) The making of the award was induced or affected by fraud or corruption or was in
violation of section 75 or section 81; or
b) It is in contravention with the fundamental policy of Indian law; or
c) It is in conflict with the most basic notions of morality or justice
Section 48(3) the Arbitration & Conciliation Act, 1996, provides that when, the party makes an
application before the court with the request to set aside or suspend the enforcement of a foreign
award, the court is empowered to adjourn its decision on enforcement and may also order the
other party to give suitable security.
In Glencore International AG v. Indian Potash Ltd. & Anr.,120 it was held that a decision on
jurisdictional issues at preliminary stage and before hearing the matter on merits by the
adjudicating authorities is not a mandatory requirement under the Indian law.
In Haryana Telecom Ltd. v. Sterlite Industries,121 the Supreme Court has held that an arbitrator,
notwithstanding any agreement between the parties, would have no jurisdiction to order winding
up of the company.
In Renusagar Power Co. v. G.E.C.,122 observed that in enforcement proceedings of a foreign
119
Subs. by the Arbitration & Conciliation (Amendment) Act, 2015 (Act 3 of 2016), s. 22, for the Explanation of s.
48(2)(b) (w.e.f. 23-10-2015).
120
Judgement dated August 9, 2019 in EX.P. 99/2015.
121
1999 (2) Arb. LR 685 (SC).
122
AIR 1994 SC 860, 888.
48
arbitral award, the scope of enquiry before the court in which award is sought to be enforced is
limited to the conditions mentioned in Section 48.
ENFORCEMENT OF FOREIGN AWARDS
Section 49 of the Arbitration and Conciliation Act, 1996, states that when the Court is not only
of opinion but also satisfied that a foreign award can be enforced by the Court, the award shall be
deemed to be a decree of the court.
In Koch Navigation Inc. v. M/s. H.P.C.L.,123 the Supreme Court of India had held that the award
must be executed as it is and there is no scope for addition to, or subtraction from, the award.
APPEALABLE ORDERS
Section 50(1) reads as follows:
Notwithstanding anything contained in any other law for the time being in force, an appeal 124
shall lie from the order refusing to:
a) refer the parties to arbitration under section 45;

b) enforce a foreign award under section 48, to the court authorised by law to hear appeals
from such order.
Section 50(2) The Arbitration and Conciliation Act, 1996, states that no second appeal shall lie
from an order passed in appeal under this section, but nothing in this section shall affect or take
away any right to appeal to the Supreme Court.
Section 51 of The Arbitration and Conciliation Act, 1996, states that nothing in this Chapter shall
prejudice any rights which any person would have had of enforcing in India of any award or of
availing himself in India of any award if this Chapter had not been enacted.
GENEVA CONVENTION
MEANING OF A FOREIGN AWARD
123
AIR 1989 SC 2198.
124
Subs. by Act 33 of 2019, s. 12, for “An appeal” (w.e.f. 30-8-2019).
49
A foreign award means an arbitral award on differences relating to matters considered as
commercial under the law in force in India made after the 28th day of July, 1924:125
a) In pursuance of an agreement for arbitration to which the Protocol set forth in the Second
Schedule applies, and
b) Between persons of whom one is subject to the jurisdiction of some one of such Powers
as the Central Government, being satisfied that reciprocal provisions have been made,
may, by notification in the Official Gazette, declare to be parties to the Convention set
forth in the Third Schedule, and of whom the other is subject to the jurisdiction of some
other of the Powers aforesaid, and
c) In one of such territories as the Central Government, being satisfied that reciprocal
provisions have been made, may, by like notification, declare to be territories to which
the said Convention applies,
Further, Section 53 of The Arbitration and Conciliation Act, 1996, provides that finality of a
foreign award will not be recognised, if there is any pending proceedings in respect of validity of
such a foreign award under consideration as such in the country in which it is made.
POWER OF JUDICIAL AUTHORITY TO REFER TO PARTIES TO ARBITRATION
Section 54 of The Arbitration and Conciliation Act, 1996, provides that any provisions given in
Part I or in the Code of Civil Procedure, 1908 shall not be applied if it is contrary to the
provisions provided under Chapter II of the present Act. It provides power to the judicial
authority to refer the parties to the decision of the arbitrators, if the following requirements of
conditions are fulfilled:
a) There should be dispute regarding a contract made between persons to whom Section 53
applies, and
b) The contract must include an arbitration agreement, in this respect it is immaterial
whether referring to present or future differences,
c) A party to the arbitration agreement must initiate legal proceedings opposed to another
party in such arbitration agreement,
125
The Arbitration and Conciliation Act, 1996 (Act 26 of 1996), s. 53
50
d) The judicial authority must be of opinion that the agreement or the arbitration can
proceed and it is operative,
e) The judicial authority has to be satisfied that the arbitration is valid under Section 53 of
the Act and capable of being carried into effect.
No time limit has been prescribed under Section 54 of the Act, however, it may be determined in
the light of circumstances by the judicial authority.
FOREIGN AWARDS EHEN BINDING
Section 55 of The Arbitration and Conciliation Act, 1996, provides that a foreign award which
has enforceability under this Chapter II, the Geneva Convention Award, will be acted as binding
force upon the parties against whom it was made and such a foreign award will become the basis
to seek defence, set-off or otherwise any legal proceedings in India, by the parties. Thus, under
this Chapter, enforcement of such a foreign award will be explained with references contained in
that award.
EVIDENCE
Section 56(1) of The Arbitration and Conciliation Act, 1996, provides the requirement of
specified evidences which are to be produced by the party, who is applying for the enforcement
of a foreign award, before the Court. Thus, the burden of production of the following documents
lie on the party, who is seeking enforcement. These are:
a) The original award or a copy of an award thereof is duly authenticated in the manner
required by the law of the country in which it was made,
b) The proof that an arbitral award has finality,
c) Any other evidences to fulfil conditions mentioned in aforesaid clauses (a) and (b) of
section 57(1).
Section 56(2) of The Arbitration and Conciliation Act, 1996, provides that if any documents
produced under section 56(1) of the Act are in a foreign language, are to be translated into
English, certified as correct by a diplomatic or consular agent of the country to which that party
belongs, should be produced by the party who is applying for enforcement of the award, or the
51
documents in any other foreign language to be translated into English and certified in such
manner as required by law in force in India.
CONDITIONS FOR ENFORCEMENT OF FOREIGN AWARDS
The foreign award may be enforceable under this Chapter if following conditions are fulfilled
which are as follows:126
a) The arbitral award has been made on the basis of submission made to arbitration which is
valid under the law applicable thereto;
b) The subject-matter of the award is capable of settlement by arbitration under the Indian
law;
c) The award has been made by the arbitral tribunal provided for in the submission to
arbitration or constituted in the manner agreed upon by the parties and in conformity with
the law governing the arbitration procedure;
d) The award has become final in the country in which it has been made, in the sense that it
will not be considered as such if it is open to opposition or appeal or if it is proved that
any proceedings for the purpose of contesting the validity of the award are pending;
e) The enforcement of the award is not contrary to the public policy or the law of India.
Even after fulfilling these conditions as specified under section 57(1), the enforcement may be
refused by the Court, if the Court finds that:127
a) The award has been declared invalid in the country in which it was made;
b) The party against whom the arbitral award is sought to be used was not given notice of
the arbitration proceedings in sufficient time period to enable him to present his case; or
that, being under a legal incapacity, he was not properly represented;
c) The award does not deal with the differences contemplated by or falling within the terms
of the submission to arbitration or that it contains decisions on matters beyond the scope
of the submission to arbitration:
However, under Section 57(2) of The Arbitration and Conciliation Act, 1996, the Court is
empowered to postpone the enforcement of a foreign award or may order to provide guarantee in
126
127
52
this regard if such a foreign award is not the result of all the differences submitted to the arbitral
tribunal.
Section 57(3) of The Arbitration and Conciliation Act, 1996, provides extra grounds to oppose
the enforcement of a foreign award by the party against whom the award is made. These grounds
are in addition to the grounds provided under clauses (a) and (c) of sub-section (1) of Section 57
and clauses (b) and (c) of sub-section (2) of section 57. It is the right given to the party to oppose
enforcement of a foreign award based on said grounds. Thus, the party can question the validity
of the award before the Court. The court is empowered to refuse enforcement of the award or
adjourn enforcement of the award after giving reasonable opportunity to the party within
reasonable time, against whom the award is made.
ENFORCEMENT OF FOREIGN AWARDS
Section 58 of The Arbitration and Conciliation Act, 1996, states that where the Court is satisfied
that the foreign award is enforceable under this Chapter, the award shall be deemed to be a
decree of the Court.
APPEAABLE ORDERS
Section 59(1) of The Arbitration and Conciliation Act, 1996, states that an appeal shall lie from
the order refusing:
a) To refer the parties to arbitration under section 54; and

b) To enforce a foreign award under section 57,
c) To the court authorised by law to hear appeals from such order.
Section 59(2) of The Arbitration and Conciliation Act, 1996, states that no second appeal shall
lie from an order passed in appeal under this section, but nothing in this section shall affect or
take away any right to appeal to the Supreme Court.
SAVING
Section 60 of The Arbitration and Conciliation Act, 1996, states that nothing in this Chapter shall
prejudice any rights which any person would have had of enforcing in India of any awardor of
availing himself in India of any award if this Chapter had not been enacted.
53
In Societa Anonmina v. S. Gorakharam Gokalchand,128 the court observed that one of the
conditions for the enforcement of a foreign award is that such an award must have been made
inon the basis of submission made to arbitration which is valid under the law applicable.
In Se Seoil v. Gorakhram,129 it was observed that Sections 57(1) and 57(2) specify grounds
which should be complied with before a foreign award is enforced in India. Whether these
grounds are satisfied the burden of proof is on the party seeking enforcement of the award.
PUBLIC POLICY AND ARBITRAL AWARD

The term public policy plays a very important role in the process of enforcement of an arbitral
award and specially in the case of enforcement of foreign award as it involves arbitrators,
lawyers and parties from various legal and cultural traditions. Public policy is one of the ground
mentioned under Arbitration and Conciliation Act based on which the party can challenge the
enforcement of a domestic as well as foreign awards.
The term “public policy” or “as opposed to public policy” has not been defined under The
Arbitration and Conciliation Act, 1996 and Indian Contract Act, 1872 but the term has been used
under the Act under sections 34(2)(b)(ii), 48(2)(b) and 57(1)(e) which are modelled on the
pattern of Article 34 of the UNCITRAL Model Law. Section 34(2)(b)(ii) says that if the court
can set aside a domestic arbitral award if it finds that it is in contradiction to public policy of
India. Section 48(2)(b) of the Act says that the court can set aside a foreign award in the dispute
relating to jurisdiction of different state parties to Geneva Convention. Section 48(1)(e) of the
Act says that the court can set aside a foreign award in the dispute relating to jurisdiction of
different state parties to New York Convention.
The Explanation part of sections 34(2)(b)(ii), 48(2)(b) and 57(1)(e) of the Act provides some
grounds as to when the award made is in conflict to public policy. The grounds are as follows:
a) the arbitral award made was induced or affected by fraud or corruption or was in
violation of section 75 or section 81,
b) it is in contravention with the fundamental policy of the Indian law,
c) it is in conflict with the most basic concept of morality or justice.
128
AIR 1964 Mad. 532.
129
64 Bom. LR 113.
54
Public Policy is not the policy of the Govt. of a country. The concept of public policy is related
to the matters which concerns the public interest or the public good. The term “public policy” is
similar to the term “policy of law”. Any act done which is harmful to the interest of the public or
the state will be considered against the public policy or the policy of law. However, what is good
orw hat is harmful to public interest or public good varies from time to time.130
The award on its face is patently in violation of the statutory provisions will not be considered in
public interest. Such award will affect the administration of justice.
In Renusagar Power Co. Ltd. v. General Electric Co.,131 the court interpreted the term ‘public
policy’ under section 7(1) of the Foreign Award (Recognition and Enforcement) Act, 1961
which deals with the grounds for refusal of enforcement of foreign award. The court took the
narrow interpretation on refusing the enforcement of an arbitral award. The enforcement of an
award can be refused only if it is in contradiction to:
a) Fundamental policy of Indian law,

b) The interest of India,
c) The justice of morality.
It was further held that the contravention of law alone will noy attract bar to doctrine of public
policy and “something more than contravention of law is required”.
The decision of SC in Renusagar case have been the starting point whenever someone considers
the judicial intervention to refuse the enforcement of an award on the ground of public policy
In ONGC v. Saw Pipes,132, the Supreme Court decided to broaden the definition of public policy.
It noted the concept of "public policy" connotes some matter which concerns public good and the
public interest and an award which violates statutory provision cannot be considered in public
interest. Therefore, the Court held that, in addition to three grounds to set aside an award laid
down in Renusagar case133, if the arbitral award passed by the arbitral tribunal was patently
illegal or in a direct conflict with a statutory provision, the enforcement of an arbitral award
would be in contradiction to public policy.
130
Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly, AIR 1986 SC 1571.
131
AIR 1994 SC 860.
132
(2003) 5 SCC 705.
133
AIR 1994 SC 860.
55
The Court further held that the illegality of arbitral award must go to the root of the matter and if
the illegality is of a trivial nature, it can be held that the arbitral award made is against the public
policy.
However, the Saw Pipes case was criticized by many commentators on the Following grounds:
1. It unnecessarily expanded the definition of public policy and allowed unjustified judicial
intervention to examine the validity of an arbitral award,
2. The inclusion of the term patent illegality has weakend the spirit of 1996 Act,
3. The judiciary did not follow the principle of separation of powers and did not take into
the account the intention of parliament behind the 1996 Act.
4. The decision of Saw Pipes clearly impugned upon as an effective method of dispute
resolution.
In Centrotrade Minerals & Metals Inc v. Hindustan Copper Ltd.,134 the Court viewed that
irrespective of whether it agreed or disagreed with the rationale expressed in Saw Pipes case, it
still remains binding and they have no choice but to abide by it.
There were certain decisions which blurred a distinction between domestic awards under section
34 of the Act and foreign awards under section 48 of the Act, thus, adding to the confusion to the
meaning of ‘public policy’.
In Bhatia International v. Bulk Trading S.A.,135 the Supreme Court held that provisions of Part I
of the Arbitration and Conciliation Act, 1996 will also apply also to International commercial
arbitration which took place outside India unless the parties by agreement expressly or impliedly
excluded it or any of its provisions.
The importance of the Bhatia case for the purposes of defining ‘public policy’ under Section 48
of the Act was brought in Venture Global Engineering v. Satyam Computer Services Ltd.136
(“Venture Global Engineering”), In this case, the award was made in London and the governing
law of contract was of Michigan. However, when it came for enforcement, the Court relied on
Bhatia case to hold that, that it is permissible to apply the the provisions of section 34 of Part I of
134
2006 (2) Arb LR 547.
135
(2002) 4 SCC 105.
136
AIR 2008 SC 1061
56
the Act to set aside a foreign award, unless agreed by the parties. The Court also applied the test
of ‘patent illegality’ which was introduced in Saw Pipes case for the enforcement of the foreign
award under Section 48 and, thus, the award has been set aside for violating Indian statutory
provisions under FEMA. In this manner, it extinguished the distinction of ‘public policy’
between domestic and foreign awards.
In Western Maharashtra Development Corporation Ltd. v. Bajaj Auto Ltd.,137 the Bombay HC
set aside an arbitral award on the ground that it is contrary to the substantive provisions of law
and as a result patently illegal. The decision sparked the controversy and anxiety both onshore
and offshore with legal practitioners all over the world noting that such decisions if left
unaddressed will tarnish the image of India internationally.
These concerns were identified by the Government and decided to take initiatives to bring about
legislative changes in order to address the problems created by these decisions.
In Phulchand Exports Ltd. v. OOO Patriot,138 taking the view of Venture Global Engineering
case, the Supreme Court extended the meaning given to the term ‘public policy’ in Saw Pipes
case under section 34 of the Act to the term used in section 48 of the Act and also held that a
foreign award can be set aside on the ground of patent illegality also even in international
commercial arbitrations. The Court, thus, ignored the interpretation by Renusagar which was in
fact delivered while dealing with a provision similar to Section 48 of the Act.
The recognition of the distinction between grounds for setting aside domestic and foreign awards
for the first time was made in the Bharat Aluminium Co. Ltd. v. Kaiser Aluminium Technical
Services Inc.,139 (BALCO). In BALCO, the decision of the Bhatia case was overruled and the
Court made a very clear distinction between domestic and foreign arbitrations and provided that
Part I of the Arbitration and Conciliation Act, 1996 would not apply to foreign arbitrations.
BALCO affirmed that a foreign award cannot be challenged under section 34 of Part I of the Act.
Thus, it confirmed that the level of judicial intervention in a foreign arbitration under Section 48
of the Act should be limited as compared to judicial intervention with domestic awards under
Section 34 of the Act.
137
(2010) 154 Comp Case 593 (Bom.).
138
(2011) 10 SCC 300.
139
(2012) 9 SCC 552.
57
Reinforcing this stance, in Shir Lal Mahal v. Progato Grano Spa,140 the Supreme Court
overruled the decision of Phulchand Exports case and restricted the range of the term ‘public
policy’ in case of international commercial arbitrations under Section 48 of the Act. The Court
reinstated the Renusagar position with respect to enforcement of foreign awards and confirmed
that the Renusagar test shall apply for the refusal of enforcement of a foreign award on the
grounds of conflict with public policy of India. The wider import of the expression pubic policy’
as laid down in Saw Pipes therefore will not to apply to enforcement of foreign awards under
Section 48 of the Act.
In M/S Lion Engineering Consultants v. State of Madhya Pradesh,141 the SC held the term public
policy refers to law in force in India weather State Law or Central Law. The court futher held
that there is no limitation on plea of jurisdiction being raised by way of an objection under
section 34 of the Act even if no objection raised under section 16 of the Act.
CONCLUSION
Thus, the arbitral award is a conclusive determination given by arbitrator during arbitral
proceedings. It is similar to the decision of court and is enforced in the same manner as decree
passed by the court. The act provides for the requirements to be fulfilled and the procedure
which need to be followed in making of an arbitral award. After making of an arbitral award the
arbitral proceeding comes to an end. The Act provides for the direct enforcement of domestic
arbitral award.
Public policy is the exception to an arbitral award. The term public policy is considered
ungoverned due to which it is open to interpretation. The term has been interpreted from time to
time by the courts through various decisions. The term patent illegality was introduced in Saw
Pipes case as one of the grounds, for arbitral award being in violation of public policy.
SUGGESTIONS
1. Proper education and training should be given to judges for dealing with the cases of
arbitration
140
(2014) 2 SCC 433,
141
Judgement dated July 10, 2017 in CIVIL APPEAL NOS. 8984-8985 OF 2017.
58
2. Initiative should be taken at international level like international agreement should be
initiated so that countries can come together to reach an agreement as to the parameters
of the public policy defence.
3. Judges should be made aware of that the fact that arbitration is self-contained because it
is recognized for the quick and effective dispute resolution.
4. Judges should be made aware that undue interference will have adverse effect on the
country’s economy and growth.
59
BIBLIOGRAPHY
STATUTES
1. The Arbitration and Conciliation Act, 1996 (Act 26 of 1996)

2. The Arbitration and Conciliation (Amendment) Act 2015 (Act 3 of 2016)
3. The Arbitration and Conciliation (Amendment) Act 2019 (Act 33 of 2019)
4. The Code of Civil Procedure, 1908
5. The Limitation Act, 1963 (Act 36 of 1963)
INTERNATIONAL CONVENTIONS
1. New York Convention, 1958

2. Geneva Convention, 1927
BOOKS
1. Dr. S.C. Tripathi, Arbitration and Conciliation Act, 1996 (Central Law Publication, 6th
Edn., 2012)
2. Dr. (CA) Rajkumar S. Adukia, A Practical Guide on The Concept of Arbitration (Rishabh
Academy Private Limited, 1st Edn., 2016)
WEBSITES
1. http://www.legalservicesindia.com/article/433/Arbitral-Award-Its-Challenge-&-
Enforcement.html
2. https://expert-evidence.com/types-of-award-in-arbitration/
3. https://www.scribd.com/document/111916229/Arbitral-Award
4. https://www.indiacode.nic.in/bitstream/123456789/1978/1/A1996-26.pdf
5. https://www.barandbench.com/columns/25-important-judgments-on-arbitration-in-2020
6. https://www.lawweb.in/2019/05/whether-sole-arbitrator-after.html
7. https://www.coursehero.com/file/p4u8c73/Section-35-Finality-of-arbitral-awards-An-
arbitral-award-shall-be-final-and/
8. http://www.icaindia.co.in/icanet/rules/commercialarbitration/arbitration&conciliation/cha
pter6b6.htm
60
9. www.indiankanoon.org
10. https://www.scribd.com/document/368571855/Enforcement-of-Arbitral-Awards
11. https://legalconclave.com/blog/enforceability-of-foreign-and-domestic-arbitral-awards-
in-india%e2%80%8b/
12. http://legalserviceindia.com/legal/article-660-recognition-and-enforcement-of-arbitral-
awards-in-india.html
13. http://shodhganga.inflibnet.ac.in/bitstream/10603/110130/16/16_chapter%206.pdf
14. http://lawtimesjournal.in/what-are-foreign-arbitral-awards-are-they-enforceable-in-india/
15. https://www.barandbench.com/columns/arbitration-review-40-recent-judgments-part-1
16. https://www.barandbench.com/columns/the-delhi-high-court-in-review-august-2019-part-
i
17. https://www.barandbench.com/columns/arbitration-review-40-recent-judgments-part-2
18. https://www.lawctopus.com/academike/arbitral-award-setting-aside/
19. http://www.legalservicesindia.com/article/1224/Public-Policy-under-Arbitration-
Law.html
20. https://www.scribd.com/document/415182489/Note-on-Public-Policy
21. https://www.scribd.com/document/260107709/ADR-Project-Semester-V
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Faculty of Law, Jamia Millia Islamia

CONCEPT OF ARBITRAL AWARD AND

CLINICAL COURSE-1 (ALTERNATIVE DISPUTE

Submitted to: Office of Dean, Faculty of Law, Jamia Millia Islamia,

B.A. LL.B. (HONS.) SELF-FINANCE 4TH YEAR

MEANING OF ARBITRAL AWARD......................................................................................14

ESSENTIALS OF ARBITRAL AWARD.................................................................................15

GENERAL PRINCIPLES OF AN ARBITRAL AWARD......................................................17

MAKING OF AN ARBITRAL AWARD..................................................................................18

RULES APPLICABLE TO SUBSTANCE OF DISPUTE...................................................19

DECISION OF THE ARBITRAL TRIBUNAL....................................................................21

TIME LIMIT FOR MAKING AN ARBITRAL AWARD...................................................22

FAST TRACK PROCEDURE................................................................................................24

FORM AND CONTENTS OF ARBITRAL AWARD..........................................................26

COST OF THE PROCEEDING.............................................................................................30

RECOURSE AGAINST AN ARBITRAL AWARD................................................................35

FINALITY OF AN ARBITRAL AWARD................................................................................38

ENFORCEMENT OF AN ARBITRAL AWARD....................................................................40

ENFORCEMENT OF CERTAIN FOREIGN AWARDS.......................................................42

NEW YORK CONVENTION.................................................................................................43

OBJECTIVE OF THE PAPER

According to H. Lexicon: “It is an instrument which embodies a decision of an arbitrator or

ESSENTIALS OF ARBITRAL AWARD

GENERAL PRINCIPLES OF AN ARBITRAL AWARD

MAKING OF AN ARBITRAL AWARD

RULES APPLICABLE TO SUBSTANCE OF DISPUTE

Generally, in an arbitration other than an international commercial arbitration, the arbitral

a) The place where the arbitration agreement has been executed,

DECISION OF THE ARBITRAL TRIBUNAL

In J. Kuppuswami v. Anantharaman27, the Madras HC observed that it is the requirement of law

TIME LIMIT FOR MAKING AN ARBITRAL AWARD

FAST TRACK PROCEDURE

FORM AND CONTENTS OF ARBITRAL AWARD

a) The fees and expenses of the arbitrators, Courts and witnesses;

a) Whether costs are payable by one party to another;

If the Court or arbitral tribunal decides to make an order as to payment of costs:61

a) The conduct of all the parties;

a) A proportion of another party’s costs;

a) When the final award has been made,

RECOURSE AGAINST AN ARBITRAL AWARD

APPLICATION FOR SETTING ASIDE AN AWARD

GROUNDS FOR SETTING ASIDE AN AWARD

1. A party is under some incapacity, [s. 34(2)(a)(i)]

1. The arbitral award made is in contradiction to the public policy of India.

REMISSION BY ARBITRAL TRIBUNAL

FINALITY OF AN ARBITRAL AWARD

RIGHTS AND LIABILITES OF THE PARTIES TO BE DECIDED ON THE BASIS OF

MUST BE REASONABLE AND POSSIBLE

An arbitral award should be a complete decision on disputes which requires determination. An

FINALITY, EFFECT AND ENFORCEMENT OF AN AWARD

ENFORCEMENT OF AN ARBITRAL AWARD

a) Arbitral proceedings commenced on or after October 23, 2015 (date of commencement of

ENFORCEMENT OF CERTAIN FOREIGN AWARDS

a) Geneva Convention 1927

NEW YORK CONVENTION

a) arbitration should have been held in foreign coumtry, by a foreign arbitrator;

POWER OF JUDICIAL AUTHORITY TO REFER PARTIES TO ARBITRATION

WHEN FOREIGN AWARD BINDING

a) If the parties made an arbitration agreement under Section 44 in compliance of law

ENFORCEMENT OF FOREIGN AWARDS

Section 50(1) reads as follows:

a) refer the parties to arbitration under section 45;

POWER OF JUDICIAL AUTHORITY TO REFER TO PARTIES TO ARBITRATION