“ARBITRAL AWARDS“

11/08/2023

A.RAMASUBRAMANIAN BE LLB FCIArb

Linkedin:.linkedin.com/in/ramadr
ram.s@adroitpmc.com

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An award that is easily

enforceable

Resilient An award that can’t be setaside

Arbitral
Award An award that is reasoned

An award that is comprehensive

TAKEAWAYS

TYPES OF ARBITRAL AWARDS

ELEMENTS OF AN ARBITRATION AWARD

SETTING ASIDE AND

ENFORCEMENT OF ARBITRATION AWARD

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BASIC INGREDIENTS OF AN AWARD

There are two conditions provided in the Arbitration Act, 1996 for an
award to be valid-

1. It must be certain, and

2. It must contain the decision.

It must also assimilate the mandatory provisions of the Act.

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Award must be certain
Union of India V. Punjab Communications 2003 (2) ARBLR 604 HP

The award should be very much clear and final in the context of the issues
and claims of the dispute concerned.

In this case, the amount which was payable by one party to the other was
not specified in the award and also the decision was unclear and incapable
of being enforced.

Therefore the arbitral award was set aside

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BASIC INGREDIENTS

• Section 31 - an arbitral award shall be made in writing and

be signed by the members of the arbitral tribunal.

• Section 31(2) - in arbitral proceedings with more than one

arbitrator, the signatures of the majority of the members of
the arbitral tribunal shall be sufficient provided the reason
for any omitted signature is stated.

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BASIC INGREDIENTS
• After the award is made, a signed copy is required to be delivered to
each party.
• Section 31 - the arbitral award shall state the reasons , unless the
parties have agreed that no reasons are to be given, or the award is an
arbitral award on agreed terms under Section 30 (Settlement).
• Additionally, the award is required to state the date and place of
arbitration as determined in accordance with Section 20 (Place of
Arbitration) and the award shall be deemed to have been made at that
place.

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𝗠𝗮𝗻𝗱𝗮𝘁𝗼𝗿𝘆 𝗽𝗿𝗼𝘃𝗶𝘀𝗶𝗼𝗻𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗿𝗯𝗶𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗔𝗰𝘁.

Section 29A. Time limit for the arbitral award.

The award in matters other than international commercial arbitration shall be made by the
arbitral tribunal within a period of twelve months from the date of completion of pleadings
under sub-section (4) of section 23.

(4) If the award is not made within the period specified in sub-section (1) or the extended
period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate
unless the Court has, either prior to or after the expiry of the period so specified, extended
the period.

(8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties
under this section.

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The Award:
Structure, Form and
'Publishing'

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Basic Structure of an
Award

• Headings/contents

• Reasons

• Operative part

• Decisions

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Structure of an Award- Style and Content
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Introduction:

• the parties’ and representatives’ details;

• the contract;

• arbitration agreement;

• arbitration rules that apply;

• the seat

• date of notice of arbitration

• date and details of nomination/appointment;

• matters referred and redress sought.

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Structure of an Award- Style and Content

Jurisdiction:
• details of any challenge to jurisdiction
• arbitrator’s conclusion (if appropriate)

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Structure of an Award- Style and Content

The arbitration process:

• dates of relevant submissions
• date of any meeting(s) and attendees
• details of any particular procedural problems
• other interlocutory matters.

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Structure of an Award

Body of award or general narrative:

• Background narrative in sufficient detail to identify the
issues that are to be decided.
• A summary of the evidence and arguments of the parties
• Whatever is written should be set out in an orderly and
logical sequence and in plain language.
• Issues to be decided.

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STRUCTURE OF AN AWARD

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The award – operative directions:

• The arbitrator’s decisions on the various issues.

• Sums of money awarded.

• Interest award, if the arbitrator has been asked and has jurisdiction to do so.

• The arbitrator’s costs should be allocated, as per the procedure or rules.

• parties’ own costs – pursuant to jurisdiction.

• The award should be signed, dated and 'made' at the seat.

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 16

CONTENTS
OF A
TYPICAL
ARBITRATIO
N AWARD

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CONTENTS
OF A
TYPICAL
ARBITRATI
ON AWARD

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 Publishing the Award

• Once the arbitrator has written his award, he has to deliver

it to the parties or 'publish' it.

• Most arbitral institutions require the arbitrator to deliver

his decision to the institution , who will forward it to the
parties subj to payments.

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 Three areas in which the arbitrator may

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have a continuing interest- Post
publishing

Publishing 1. He may have made errors in the

decision.

the Award 2. If the losing party does not comply

with the arbitrator’s orders (usually
non-payment of a monetary sum),
the successful party must seek to
enforce the decision in the courts.

3. Payment of his, the arbitrator’s fees.

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 What constitutes a valid delivery? - Supreme Court of India

Union of India vs. Tecco Trichy Engineers & Contractors,

MANU/SC/0214/2005 : (2005) 4 SCC 239
• The delivery of an arbitral award under sub-section (5) of Section 31 is
not a matter of mere formality. It is a matter of substance.
• The delivery of arbitral award to the party, to be effective, has to be
"received" by the party.

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Titles for arbitral awards

INTERIM AWARDS PARTIAL AWARDS FINAL AWARDS

CONSENT OR
DEFAULT AWARDS
AGREED AWARDS

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 Examples of Interim decisions

Interim
include decisions to preserve a
factual or legal situation

Awards necessary to secure the claim

which is the subject of the
arbitration.

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 Partial awards are most
frequently used to record the
determination of specific

Partial issues where the dispute is

complex and can be divided
awards into different stages.

For example, if the arbitrators

bifurcate the liability and
quantum issues
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 An award should be

Final described as a ‘Final Award’

when it is intended to bring
awards the arbitration to an end by
deciding and disposing of all
or the outstanding issues in
dispute between the parties.

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CONSENT OR AGREED AWARDS

If the parties to a dispute settle their differences during the arbitration

proceedings, they may ask the arbitrators to make a consent award or an
award on agreed terms.

In India, if the mediation renders settlement agreement under the Arb-Med-

Arb clause, it will be incorporated as consent award pursuant to S.30 &
S.31 of the Act.

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Can an Arbitral Tribunal pass more than one award?

LLOYED INSULATIONS v. FOREMEXX SPACE (Ker. HC 2022, 2 JJ) ARB.A NO. 17 OF 2013. Date:17-01-2022

A three-member arbitral panel could not agree on a single award. Hence these "awards" were issued:

1. Two arbitrators, 1 & 2, issued separate awards dated 24-02-2010

2. The presiding arbitrator agreed with Arbitrator No.1's award, hence he issued an award dated
05.04.2010 that was signed by him and Arbitration No.1 but included the Arbitrator No.2's award as an
appendix with a reference in the majority award

The Kerala HC upheld the majority award and rejected contention that there were multiple awards in
these terms:

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SUBSTANTIVE AWARDS

MONETORY AWARD
DECLARATORY AWARD
PERFORMANCE AWARD
INJUCTIVE AWARD
RECTIFICATION AWARD
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Interest award.
1. Arbitrators jurisdiction to award interest, if any, under

the arbitration agreement.

2. Arbitrators should ask for submissions /evidence as

to interest / rates

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Interest award.
3. When determining interest, arbitrators should have

regard to all the circumstances of the case and take into

account the economic reality

4. An award of interest should compensate the receiving

party. It should not punish the paying party.

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𝗧𝗵𝗲 𝗔𝗿𝗯𝗶𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝘁𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗰𝗮𝗻𝗻𝗼𝘁 𝗮𝘄𝗮𝗿𝗱 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗶𝗳 𝘁𝗵𝗲
𝗽𝗮𝗿𝘁𝗶𝗲𝘀 𝗵𝗮𝘃𝗲 𝗮𝗴𝗿𝗲𝗲𝗱 𝗼𝘁𝗵𝗲𝗿𝘄𝗶𝘀𝗲. - 𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁

• Case Title: Delhi Airport Metro Express Pvt. Ltd. v Delhi Metro Rail
Corporation, Civil Appeal No. 3657 of 2022 arising out of S.L.P. (C) No.
4901 of 2022., Dated: 05.05.2022

• The Division Bench of Justice L. Nageshwar Rao and Justice B.R.

Gavai held that when the parties have an agreement between
themselves that governs the issue of interest, the arbitrator would
lose its discretion and will be guided by the agreement between the
parties.

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 Interest award - Period of interest
accrual
1. Arbitrators should determine the date or dates when liability for
interest starts to accrue.

2. 2. Arbitrators should include in their award of interest:

i) ‘pre award interest’ and

ii) ‘post award interest’.

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Determining Rate of
Interest
• rate at which a party in the position of the
receiving party would have had to pay to
borrow the sum awarded for the period in
question.

• rate of interest applicable to short term

unsecured loans

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𝐃𝐨𝐞𝐬 𝐭𝐡𝐞 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐨𝐫 𝐡𝐚𝐯𝐞 𝐝𝐢𝐬𝐜𝐫𝐞𝐭𝐢𝐨𝐧 𝐭𝐨 𝐠𝐫𝐚𝐧𝐭 𝐏𝐨𝐬𝐭-𝐀𝐰𝐚𝐫𝐝
𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐨𝐧𝐥𝐲 𝐨𝐧 𝐭𝐡𝐞 𝐩𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥 𝐚𝐦𝐨𝐮𝐧𝐭 𝐚𝐥𝐨𝐧𝐞?

MORGAN SECURITIES AND CREDITS PRIVATE LIMITED Pvt. Ltd. v. Videocon Industries Ltd. (Supreme
Court of India, decided on 01.09.2022)
According to Section 31(7)(b), if the arbitrator does not grant post-award interest, the award holder is
entitled to post-award interest at eighteen percent.

Section 31(7)(b) does not fetter or restrict the discretion that the arbitrator holds in granting post-award
interest. The arbitrator has the discretion to award post-award interest on a part of the sum (such as
principal alone).

Since the impugned arbitral award granted interest on the principal amount alone, it was well within the
domain of the arbitrator, to award post award interest on only a part of the sum, that is the principal
alone.

Thus, there was no error apparent in the award and the SLP was dismissed.

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 Arbitral Awards - Costs

i. procedural costs - arbitrators’ fees and expenses and the

administrative charges of any arbitral institution; and
ii. party costs, - legal costs and other expenses incurred by
a party in respect of the arbitration, including the fees and
expenses of outside counsel, experts and witnesses and
so on.

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Allocation of liability for costs

Factors:
i) the outcome of the proceedings in terms of relative
success of the parties;

ii) the conduct of the parties;

iii) any offers to settle the dispute

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 An arbitrator may wish to
make an individual separate
opinion with the conclusions
of the majority.
Dissenting
opinion. They may be annexed to the
final award or included in the
award itself; however, they do
not have any legal effect and
they do not form part of an
award.
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𝗠𝗶𝗻𝗼𝗿𝗶𝘁𝘆 𝗱𝗶𝘀𝘀𝗲𝗻𝘁𝗶𝗻𝗴 𝗮𝘄𝗮𝗿𝗱 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗿𝗯𝗶𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝘁𝗿𝗶𝗯𝘂𝗻𝗮𝗹

• Ssangyong Engineering and Construction Co. Ltd. vs.

National Highways Authority of India (NHAI) (08.05.2019 - SC)
: MANU/SC/0705/2019

• 𝘂𝗽𝗵𝗲𝗹𝗱 𝗯𝘆 𝘁𝗵𝗲 𝗦𝗖 𝗯𝘆 𝗶𝗻𝘃𝗼𝗸𝗶𝗻𝗴 𝘀𝗽𝗲𝗰𝗶𝗮𝗹 𝗽𝗼𝘄𝗲𝗿 𝘂𝗻𝗱𝗲𝗿

𝗔𝗿𝘁𝗶𝗰𝗹𝗲 𝟭𝟰𝟮 𝗼𝗳 𝘁𝗵𝗲 𝗜𝗻𝗱𝗶𝗮𝗻 𝗖𝗼𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻.

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ENFORCEMENT / SETTING
ASIDE

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S 34(2)- Grounds
• the party was under some incapacity;
• the arbitration agreement is not proper
• the applicant was not given proper notice of the appointment
of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his or her case;
• the arbitral award deals with a dispute not contemplated by
or not falling within the terms of the submission to
arbitration, or it
• contains decisions on matters beyond the scope of the
submission to arbitration; or
• the composition of the arbitral tribunal or the arbitral
procedure was not in accordance with the agreement of the
parties

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Appeals and applications to set aside awards

• first recourse available to a party against a domestic arbitral

award would be to file an application for setting aside the
award under Section 34 of the Arbitration Act.

• Thereafter, and as a second recourse, an appeal may lie under

Section 37 of the Act from an order setting aside or refusing
to set aside an arbitral award under Section 34.

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Appeals and applications to set aside awards

A domestic award – setting aside u/s 34(2) of the Act

subject to the grounds for setting aside.

An appeal may lie under Section 37 of the Act from an

order setting aside or refusing to set aside an arbitral
award under Section 34.

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Appeals and applications to set aside awards

Significantly, no second appeal lies from an order passed

in appeal under Section 37;

Nothing prevents a party from approaching the Supreme

Court by way of a Special Leave Petition under Article
136 of the Constitution of India.

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Time limit for applying for the setting aside
• Section 34(3) - an application for setting aside an arbitral award
has to be made within three months of the date of receipt of the
arbitral award by the applicant or of the date on which a request
for correction or
• Interpretation of the award under Section 33 of the Act has been
disposed by the tribunal.
• However, if the court is satisfied that the applicant was prevented
by sufficient cause from making the application within the given
period of three months, it may entertain the application within a
further period of 30 days but not thereafter.

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Time limit for applying for the setting aside

• Foreign award - an award debtor can only file its objections

under Section 48 of the Arbitration Act once the award holder
files for enforcement of the award (Arbitration Act, Section 47
read with Section 49).

• Although the Act does not provide a timeline within which such
objections are to be filed by the award debtor, the courts typically
grant between two and four weeks to file such objections

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S 34(2)- Grounds
• Additionally, a court can set aside an award if it finds that
• the subject matter of the dispute is not capable of settlement by
arbitration under the law for the time being in force or the
arbitral award is in conflict with the public policy of India.
• The Arbitration Act clarifies that an award is in conflict with the
public policy of India, only if, inter alia,
• (1) the making of the award was induced or affected by fraud or
corruption, or
• (2) it is in contravention of the fundamental policy of Indian law,
or
• (3) it is in conflict with the most basic notions of morality or
justice.

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S 34(2)- Grounds

Dulal podda V. Executive Engineer, Dona Canal Division,

Court held that the appointment of an arbitrator at the
request of the appellant of the dispute without sending a
notice to the respondent and an ex-parte decree given by the
arbitration Tribunal will be held illegal and liable for setting
aside.

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JURISDICTION OVER AN APPLICATION

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FOR THE SETTING ASIDE

DOMESTIC AWARD

• Section 2(1)(e)(i) - an application for setting aside a domestic award will have to be filed
either before a district court, being a principal civil court of original jurisdiction, or before
the high court exercising ordinary original civil jurisdiction*.

• once an application under Part I of the Act has been put before a particular court, all
subsequent applications (including an application to set aside an arbitral award under
Section 34) will have to be put before the same court (Arbitration Act, Section 42).

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JURISDICTION OVER AN APPLICATION
FOR THE SETTING ASIDE
INTERNATIONAL
• an application for setting aside the award will have to be
filed before the high court exercising ordinary civil
jurisdiction*.

*High Courts of Delhi, Bombay, Calcutta, Madras and

Himachal Pradesh

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Documentation - setting aside application
• Arbitration Act does not prescribe the relevant documentation to be
furnished by an applicant.

• An application for setting aside an award is typically accompanied

by the original copy of the impugned and the arbitral record (i.e.,
pleadings,

evidence, etc. presented to the tribunal).

The high courts have different requirements as regards the number

of copies required by the court.
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Different steps of the setting aside
proceedings
DOMESTIC AWARD:
• Section 34(3) - provides that an application for setting aside
an arbitral award will have to be filed within three months
of the date of receipt of the award
• or the date of disposal of a request for correction of the
award under Section 33, if any.
• The application shall be filed only after serving a prior notice
to the other party, accompanied by an affidavit endorsing
compliance with the requirement under Section 34(5) of the
Act.
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Different steps of the setting aside
proceedings
DOMESTIC AWARD:
• On receipt of the application, the applicant will prima facie
have to satisfy the court that there exist grounds to set aside
the arbitral award.
• Once satisfied, the court will typically issue a notice in the
matter and direct the other party to file its response to the
application, and may permit the applicant to file a rejoinder to
the response filed by the applicant thereafter, if required.

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Different steps of the setting aside
proceedings
DOMESTIC AWARD:
• Once pleadings are complete, the court will typically hear oral
arguments by the parties to ascertain whether grounds set out
in Section 34, Paragraphs (2) and (2A) of the Act are made out,
and accordingly either set aside the arbitral award or refuse to
do so.
• Ordinarily, the courts will not reassess the evidence examined
by the arbitral tribunal.

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Different steps of the setting aside proceedings
DOMESTIC AWARD:
• An application for setting aside a domestic arbitral award will have
to be disposed expeditiously, and in any event, within one year of
the date on which the notice referred to in Section 34(5) is served on
the other party, as prescribed by Section 34(6) of the Act.

• However, the Supreme Court in State of Bihar v. Bihar Rajya Bhumi,

AIR 2018 SC 3862 has clarified that the requirement under Section
34(6) is a direction and not mandatory.
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Different steps of the setting aside proceedings

FOREIGN AWARD:
• the award debtor must wait for the award holder to file for enforcement
proceedings for execution of the award under Section 47 r/w Section 49 of
the Act,
• and then file its objections to the award in terms of the grounds stipulated
under Section 48.
• The steps of the proceedings are similar to those in a domestic award in
that the court will first direct that pleadings are completed in the matter,
and then hear oral arguments on enforceability of the award.
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Challenging an Award
• An arbitration award can only be challenged under Section
34 and not during enforcement - Delhi HC
• Case Title: Hindustan Zinc Ltd v. National Research
Development Corporation, OMP (ENF.) (COMM.) 135 of
2022, Date: 24.01.2023
• Unilateral appointment of sole #arbitrator renders the award
nullity and can be challenged even during S.36 stage. - India
Cements Capital Limited vs. William and Ors. (18.08.2015 -
KERHC) : MANU/KE/1512/2015

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ENFORCEMENT OF AN AWARD

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Enforcement of Award - Court’s jurisdiction

• An award holder must file its application for the enforcement of an

arbitral award (whether foreign or domestic) before the competent court
in whose jurisdiction the assets of the award debtor are located
(Executive Engineer v. Atlanta Limited, 2014, SCC 619;
Tata International Ltd v. Trisuns Chemical Industry Ltd, 2001, SCC Online Bom 905).
• If the assets of the judgment debtor are located in the territorial
jurisdiction of more than one court, the award holder can file execution
petitions simultaneously in all competent courts
(Bulk Trading SA v. Dalmia Cement (Bharat) Limited 2005 SCC Online Del 1389;
Cholamandalam Investment and Finance Co Ltd v. CEC Ltd and Anr, 1995).

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Enforcement of partial or interim awards.
(National Thermal Power Corporation Ltd (NTPC) v. Siemens
Aktiengesellschaft 12, 2005, DLT 36).
• Section 2(1)(c) -‘arbitral award’ includes an interim award; thus, any
interim or partial award can be enforced under Section 36 (domestic
award) and Section 47 (foreign award) of the Act.
• However, for the purposes of recognition and enforcement under Indian
law, the finality of the award is the determining factor.
• If the nature of the award is such that it is intended to have effect only
if the final award is delivered, then the award will not be enforceable

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Enforcement petition

𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻 𝗣𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗮𝗻 𝗮𝗿𝗯𝗶𝘁𝗿𝗮𝗹 𝗮𝘄𝗮𝗿𝗱 𝗵𝗮𝘀 𝘁𝗼 𝗯𝗲 𝗳𝗶𝗹𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲

𝗖𝗼𝘂𝗿𝘁 𝘄𝗵𝗲𝗿𝗲 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟵, 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟯𝟰 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻(𝘀) 𝗶𝘀/𝗮𝗿𝗲 𝗳𝗶𝗹𝗲𝗱 -
Telangana HC.

Case Title:
M/s. India Media Services Private Limited versus M/s. SBPL
Infrastructure Limited ,Dated: 09.06.2022

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Effect of a decision recognising an arbitral award.

• Once the executing court is satisfied that an award is

recognisable or enforceable, the award is deemed to be a
decree of that court as per the provisions of Section 36
(domestic award) or Section 49 (foreign award) of the
Arbitration Act.

• It may then be enforced under the relevant provisions of the

CPC relating to execution of a decree.

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Rights of a third party on the Award

• Delhi High Court in NTT Docomo Inc v. Tata Sons Ltd, 2017 (4)
Arb LR 127 (Delhi) held that a third party to the arbitration
proceedings has no locus to challenge the award under
Section 48 of the Arbitration Act, since the remedy is available
only to parties to the award.

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Challenge against a decision refusing
recognition
• u/s 37 of the Arbitration Act, an appeal lies from
an order of the court allowing or dismissing a
challenge to a domestic award.

• Similarly, u/s 50 of the Arbitration Act, an appeal

lies against a decision refusing to recognise or
enforce a foreign award to the high court
concerned.

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Challenge against a decision refusing
recognition
• No second appeal lies from an order passed under
Sections 37 and 50 of the Act.
• The aforementioned provisions do not take away the
right of the parties to prefer a Special Leave Petition
to the Supreme Court under Article 136 of the
Constitution of India and the same would be
maintainable.
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Identification of an award debtor’s
assets

• There is no publicly available database dedicated particularly

to identifying company assets, one may access the financial
statements (including balance sheets) of companies from the
public documents portal on the website of the Ministry of
Corporate Affairs (www.mca.gov.in).

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Disclosure of information about an award
debtor - Proceedings
• Arbitral award is enforced as a decree of the court

• provisions of the CPC would be applicable at the stage of

enforcement of the award.

• Order XXI, Rule 41(2) of the CPC - when a decree for payment of
money has remained unsatisfied for 30 days, the court may order
the officers of the judgment debtor company to disclose its assets.

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Disclosure of information about an award
debtor - Proceedings
• The decree holder will have to make an application in the
execution proceedings before the court in this regard.
• Courts have held that such an application can be filed
even before presentation of the execution petition. In such
cases, the decree holder can apply under Order XXI, Rule
41 of the CPC to retrieve details of the judgment debtor’s
assets.
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Types of assets that can be
attached
• Section 60 of the CPC apply to the execution of arbitral
awards, providing that all saleable property, whether
movable or immovable, may be attached in execution
proceedings – including land, houses or other buildings,
goods, money, bank notes, negotiable instruments such as
promissory notes, bills of exchange and cheques,
government securities, bonds or other securities for money,
debt, shares in a corporation.
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Types of assets that can be attached

• The assets that may be attached may either belong to the

judgment debtor or be assets over which the judgment
debtor has disposing power.

• The assets may therefore be held in the name of the

judgment debtor or by another person in trust for the
benefit of the judgment debtor.

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Types of assets that can’t be attached
• Section 60 specifies the types of properties that are not liable
to be attached, such as tools of artisans and implements of
husbandry (which may be necessary to earn a livelihood), the
mere right to sue for damages, any right of personal service,
money payable under insurance for against the life of the
judgment debtor, or any allowance declared by Indian law to
be exempt from liability to attachment.

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 IMPORTANT CASE LAWAS.

Failure to decide a key Issue, is a ground for Setting aside an

award.
Airports Authority of India vs. Bentwood Seating System P Ltd, (Single Judge, Delhi
High Court, decided on 27.05.2021)

The contention was, that AAI was entitled to avoid the contract since it had been
procured on the basis of fraud, that is false and fabricated documents.

In the Section34 Petition before the Delhi HC the Court noted, that it was irrelevant
whether the said issue had been proved by AAI before the Arbitrator or that it lacked
sufficient evidence. What was relevant was, that it was an issue which was to be
decided, but was not dealt with, in the award.
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 SOVEREIGN IMMUNITY IN ARBITRATION
ENFORCEMENT OF AN ARBITRATION AWARD AGAINST A FOREIGN STATE.
• KLA Construction Technologies Private Limited v. The Embassy of Islamic
Republic of Afghanistan, (Delhi High Court, 18.06.2021).
Two questions arose before the Court in this case:

1. Whether prior consent of Central Government is necessary under Section

86 of the Code of Civil Procedure before enforcement of an
arbitral award against a Foreign State?

2. Whether a Foreign State could claim Sovereign Immunity against

enforcement of arbitral award arising out of commercial transaction?

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For your Construction
Arbitration services:

You may reach out to:

E-mail: ram.s@adroitpmc.com
LinkedIn : linkedin.com/in/ramadr
www.adroitpmc.com

RAMASUBRAMANIAN LLB FCIArb

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