LL.B.

(3 YEAR) V SEMESTER

SUBJECT- ALTERNATIVE DISPUTE RESOLUTION

SYLLABUS

UNIT I- ALTERNATIVE DISPUTE RESOLUTION

i.) ADR: Concept, Need and Development, Advantages of ADR, UNCITRAL Model of arbitration
ii.) Arbitration and Conciliation Act, 1966: Object, Scope and Salient features,
iii.) Arbitration: Definition, sources, kinds, scope and differences to court
iv.) Types of arbitral award
v.) Arbitration agreement, power of judicial authority to refer parties to arbitration, interim measures
by court and arbitral tribunal.

LONG QUESTION

Q.1) What do you mean by ‘arbitration’? Discuss salient features of Arbitration and Conciliation Act, 1996.
(2012, 2014, 2016, 2019, 2022)
ARBITRATION

 Section 2 (a) of the Arbitration and conciliation Act,1996 defines arbitration as to any arbitration which is either
administered or not by a permanent arbitral institution.
 Arbitration is a procedure in which a dispute is submitted to one or more arbitrators who make a binding decision
on the dispute.
 In referring the matter to arbitration, both parties should be agreed to refer the dispute. In choosing arbitration, the
parties opt for a private dispute resolution procedure instead of going to court.
FOUR TYPES OF ADR

 Negotiation
 Mediation
 Arbitration
 Conciliation

SALIENT FEATURES OF ARBITRATION AND CONCILIATION ACT, 1996

 The Arbitration and Conciliation Act, 1996 is more comprehensive than the earlier Act of 1940. It consists of 86
sections divided into 4 parts.
 Notable feature of the Act of 1996 is that the arbitral award and settlement arrived at during conciliation
proceedings with the decree of the court. In other words the arbitral award is enforceable in the same manner as a
decree of a law court.
 The power of the court under the Act of 1996 has been considerably curtailed as compared with the earlier
Arbitration Act of 1940. The arbitrator has been endowed with absolute powers and he is completely immune
from the court’s control during the arbitration proceedings.
 The word umpire of 1940 has been abolished and the word has been replaced with the arbitrators in 1996.
 There were no qualifications for appointment as an arbitrator as prescribed in the earlier Arbitration Act of 1940.
But now the Act of 1996 provides for qualification of the arbitrator.
 In this Act the provision of Interim relief is given which was not given in the previous Act, and International
arbitration is also defined under the said Act.
 The Act of 1996 provides for taking assistance from the court only in certain specific matters, the Arbitral tribunal
or a party may seek assistance from the court in taking evidence. But the act does not confer any power on the
Arbitral tribunal to summon witnesses.
 The new Act of 1996 provides that an Arbitral award which is in conflict with the public policy in India shall not
be valid in law being null and void and can be set aside by the court.
Q.2) Write a short note on ADR, need for ADR, advantages of ADR, its development and UNCITRAL model of
arbitration.

ADR- Alternative dispute resolution (ADR) refers to the different ways by which people can resolve disputes without a
litigation.

 Common ADR processes include mediation, arbitration, and neutral evaluation.

 ADR regroups all processes and techniques of conflict resolution that occur outside the courtroom.
 Alternative dispute resolution, in the United States, emerged out of the legal reform and civil rights movements in
the late 1960s.
NEED FOR ADR- ADR offers to resolve the case quickly without much delay and incurs less expenses.
 It seeks to maintain peace and cooperation among the parties involved in the transaction and to prevent hostility
among them. The goal of resolving disputes through ADR is to reduce the burden on the courts and provide early
access and speedy trial to more serious cases.
ADVANTAGES OF ADR- Excessive delays in the legal process from court overload and rising legal costs also
encouraged more widespread support of ADR methods, some advantages of ADR are-
 Resolution in ADR are given very speedy, so it saves time
 Expenses are less spend in ADR as there is very less time taken by arbitrator to solve the dispute\
 ADR is more flexibility than a court (litigation)
 Result under ADR are kept confidential. Result are only known to the parties in dispute and to the arbitrator.
 Party also gets advantage of ADR as they are free to choose the method and the arbitrator by themselves.
DEVELOPMENT OF ADR- ADR is developed from olden times as there were no court in old times, so matters were
solved from by the head or by the person who had the authority to solve the dispute

 So, by looking toward the old dispute resolution system and to solve the dispute out of the court concept of ADR
was developed from following-
 PANCHAYAT SYSTEM- As matter were solved by the panch out of the courtroom
 By the family council
 Adhikrita and Nripa- king system as the matters were solved by the king in olden times and in Maratha period.
Where there were no court and lawyers
 Muslim period- In muslim period there were kazee working as a judge, solving disputes without courtroom on his
guidance.
 This was first introduced in 1982 in Gujarat. This concept mainly focused on reducing the burden of pending
cases on the Courts and has incorporated the concept keeping in mind various factors like social justice.

UNCITRAL MODEL OF ARBITRATION- The UNCITRAL Arbitration Rules were initially adopted in 1976 and
have been used for the settlement of a broad range of disputes, including disputes between private commercial parties
where no arbitral institution is involved, investor-State disputes, State-to-State disputes and commercial disputes
administered by arbitral institutions.

 The UNCITRAL Arbitration Rules provide a comprehensive set of procedural rules upon which parties may agree
for the conduct of arbitral proceedings arising out of their commercial relationship and are widely used in ad hoc
arbitrations as well as administered arbitrations.
 The Rules cover all aspects of the arbitral process, providing a model arbitration clause, setting out procedural
rules regarding the appointment of arbitrators and the conduct of arbitral proceedings, and establishing rules in
relation to the form, effect and interpretation of the award.
LONG QUESTION
Q.3) Mention the object of Arbitration and Conciliation Act, 1996 with the special reference to the
preamble of the Act. (2016, 2015, 2022)

OBJECTS OF THE ARBITRATION

The preamble of the Act is interpreted as follows-

 It is an act to integrate and amend the law relating to Domestic arbitration, International commercial
arbitration and Enforcement of foreign arbitral award. Also Law relating to conciliation and matters
related to it.

The various objectives of the Act are-

 The main object of the Act is to consolidate and amend the law relating to- domestic arbitration,
international commercial and business arbitration. Because the previous Act does not includes
International matters.
 Cover international and domestic commercial arbitration and conciliation comprehensively.
 Make a procedure which is fair, efficient and capable of meeting the needs of the society for
arbitration and conciliation.
 Provides reasons by the tribunal for granting any arbitral award.
 Ensure that the tribunal does not exercise its jurisdiction beyond the limits.
 Minimize the role of courts and reduce the burden on the judiciary.
 It permits the tribunal to opt for arbitration and conciliation as a method of dispute settlement.
 It makes sure that every award is enforced in the same manner as the decree of the court.
 It provides that the conciliation agreement reached by the parties has the same effect as the award
granted by an arbitral tribunal.
 It also works on the enforcement of foreign awards.
 To ensure that rules are laid down for international as well as domestic arbitration and conciliation.
 To ensure that the arbitral tribunal gives reasons for its award given.
 To permit the arbitral tribunal to use methods such as mediation and conciliation during the
procedure of arbitration.
 To ensure that an arbitral award is enforceable as a decree of the court.
Q.4) Write a short note on kinds of arbitration, source of the Arbitration and Conciliation act, 1996,
difference between court and arbitration.
TYPES OF ARBITRATION
1. Ad hoc arbitration
2. Institutional arbitration
3. Statutory arbitration
4. Fast track arbitration
5. Contractual arbitration

SOURCE OF THE ARBITRATION AND CONCILIATION ACT, 1996

 This list of sources for arbitration law has been compiled by Michelle Celik to accompany the article by
Nigel Broadbent on alternative dispute resolution.
 Arbitration method of solving dispute is alternative to traditional judicial system
 In Roman law, ‘compromissum’ was used to indicate a process of dispute resolution which would draw
out a compromise between the parties.
 As we can see that there have been a number of examples of arbitration that actually took place in the
ancient era.
 Ancient texts of Yajnavalka and Narada refer to three types of popular courts (Puga, Sreni, Kula).
Besides at the village level, Panchayats have also been a prevalent form of alternate dispute resolution.
 In India, arbitration came to be known and given recognition when the Arbitration Act 1899 was enacted
but its applicability only extended to Bombay, Madras and Calcutta.
 Many states have adopted or followed UNCITRAL Model Law on International Commercial Arbitration
in their legislations.
DIFFERENCE BETWEEN ARBITRATION AND COURT

ARBITRATION COURT

1.) In arbitration, a settlement between the 1,) court is involved in the case of litigation, as
parties is done outside of court. it is a lawsuit

2.) Arbitration is a method of resolving the
dispute in which a neutral third party is
appointed to study the dispute, listen to the
parties and then make recommendations.
3.) Arbitration is always civil in nature.
2.) On the other hand, litigation is described as
a legal process in which the parties resort to the
court for the settlement of disputes.
3,) litigation can be civil litigation or criminal
litigation.

4,) Arbitration is a private method of resolving 4.) litigation is a public procedure.

controversies between the parties

5.) The cost of the arbitration process is lower. 5.) The cost of litigation is higher and
expensive.
LONG QUESTION
Q.5) Write down the duties of Arbitrator. On what grounds their appointment can be challenged.
(2012, 2017)
DUTIES OF ARBITRATOR
In arbitration, the parties may impose specific duties on the arbitrator at the time of appointment. The general
duties which the arbitrator has to fulfill in all kinds of arbitration are-

 Duties to be independent and impartial- Section 12 and Section 18 of The Arbitration and Conciliation
Act, 1996 imposed an important duty on the arbitrator that in any arbitration proceeding that he must
have to be independent and impartial
 Duty to determine time and place of arbitration - According to Section 20 of this Act, it is the duty of the
arbitrator to appoint the time and place of arbitration if the parties have failed to decide it amongst
themselves.
 Duty to disclosure- According to Section 12 of this Act, there is an obligation on an arbitrator to disclose
all the relevant facts which are required to be known by both parties at the time of his first encounter
with them.
 Duty to effectively resolve the dispute- The arbitrator should have to make effective decisions without
doing any misconduct.
 Duty to determine the rule of procedure- According to Section 19, the arbitration procedure is not bound
by any code of procedure. Earlier parties are free to agree on the procedure that may be followed by the
arbitration tribunal, It always depends upon the will of the parties but if they do not have any prior
agreement on this, then the arbitrator has all the power to decide the procedure.
 Duty to interpret or correct the award- According to Section 33 of this Act, it is a duty of the arbitrator to
correct or interpret the award passed by himself within 30 days from the date of receipt-
1.) A party with notice to another party may request arbitration tribunal to correct any error like any
typographical, computation, clerical, or any other error of similar nature,
2.) A party with a notice to another party may request to interpret any specific part or parts of the
award.
GROUNDS ON WHICH THE APPOINTMENT OF AN ARBITRATOR CAN BE CHALLENGED
Grounds for challenge under this section are illustrated under Section 12(3).

 If an arbitrator’s independence and impartiality are doubted due to the circumstances under Section
12(1) then he may be challenged or in the event that he doesn’t possess the necessary qualifications
agreed to by the parties.
 A party to the dispute which appoints an arbitrator may challenge such appointment for reasons he
becomes aware only after the appointment.
 Section 12(5), inserted by the 2015 amendment, automatically disqualifies any potential arbitrator who
falls in any category under the Seventh Schedule of the Act.
 Appointment of an arbitrator is challenged when he is found as the relative of any of the party.
 When he is found having any personal interest in the matter.
 In arbitration agreements parties are generally free to decide the qualifications and experience of the
arbitrators in the agreement. In situations where the arbitrator may not possess the qualifications and
experience agreed upon in the agreement, then the parties have the liberty to challenge the appointment
of the arbitrator.
LONG QUESTION
Q.6) What is an arbitration agreement? Discuss its essential elements with the suitable cases. (2016, 2022)
ARBITRATION AGREEMENT

 Arbitration agreement is an agreement signed by the parties that, if in case any future dispute arises, then
the disputed matter will go before the arbitration.
 Section 2 of Arbitration Act, 1940- “arbitration agreement” means a written agreement to submit present
future differences to arbitration,
 An arbitration agreement according to the 1940 Act should be a written document with the consensus of
the parties and reference to a dispute.
 Section 7 of the Act, 1996 defined arbitration agreement means an agreement by the parties to submit to
arbitration all or certain disputes which have arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not.
ESSENTIAL ELEMENTS OF ARBITRATION AGREEMENT

 An arbitration agreement to be valid, it must be a product of the parties’ free will and voluntary consent
and as per the method that the parties have choosen.
 Mutual consent forms the core of an arbitration agreement. All parties involved must provide their
consent to resolve disputes through arbitration
 The agreement should specify the rules and procedures that will govern the arbitration process.
 All parties entering into an arbitration agreement must possess the legal capacity to do so. Minors,
individuals lacking mental capacity, or parties acting under duress may not be able to enter into a valid
arbitration agreement.
 The enforceability of arbitration agreements is governed by national laws and international conventions.
These legal frameworks may vary across jurisdictions, and it is crucial to understand the specific laws
applicable to the agreement.
 Arbitration agreement must be in writing.
 The contract must be a valid contract.
 There must be a separate agreement by the parties to solve the dispute according to arbitration.
 Intention of the parties must be mentioned in the dispute that why they want to solve the dispute. And
the dispute is of which nature.
CASES
1.) Cox And Kings Ltd. vs Sap India Pvt. Ltd. on 6 May, 2022
The court has held about the arbitration agreement in this case The court, under Sections 8 and 11, has to
refer a matter to arbitration or to appoint an arbitrator, as the case may be, unless a party has established a
prima facie (summary findings) case of nonexistence of valid arbitration agreement, by summarily
portraying a strong case that he is entitled to such a finding.
2.) Inox Renewables Ltd. v. Jayesh Electricals Ltd., 2021 SCC Onlien SC 448
The court cited various judgments to conclude that where a non-binding party to the arbitration agreement
notifies and takes part in policy decisions with relation to the conflict, such parties can be made a part of the
arbitration agreement.
Q.7) Write a short note on types of arbitral award, power of judicial authority to refer parties to
arbitration, interim measures by court and arbitral tribunal.

TYPES OF ARBITRAL AWARD

 Final Award- An award that is made by the requirements of the law (including signature, reason and
delivery), and finally adjudicates on the issues submitted to arbitration, would be a final award.
 Domestic award- An arbitral award made within the territory of the state.
 Foreign award- An arbitral award made or deemed to be made in the territory of another state.
 Settlement Award- During the arbitration process, the parties may choose to settle the matter instead of
having it adjudicated by the arbitrator. In such a situation, the arbitrator could assist the parties in
arriving at a settlement. If a settlement is arrived at, and the arbitrator has no objection to it, then terms
of the settlement could be made part of an award. This is referred to as a settlement award. (Section 30)
 Additional Award- When a final award has been rendered, but it is later found out that certain claims
that had been submitted to the arbitral tribunal were not resolved/adjudicated, the parties can request the
arbitral tribunal to make an additional award.

POWER OF JUDICIAL AUTHORITY TO REFER PARTIES TO ARBITRATION

Section 8 deals with the power of the judicial authority to send parties to arbitration. It states that a judicial
authority before which an action is brought in a matter that is the subject of an arbitration agreement shall,
unless it finds that prima facie, refer the parties to arbitration, if a party to the arbitration agreement or any
person who claims through or under him, so applies not later than the date of submission his first statement on
the substance of the dispute.

INTERIM MEASURES BY COURT AND ARBITRAL TRIBUNAL

 Section 9 empowers the court to order a party to take interim measure or protection when an application
is made. Besides this Section 17 gives power to the Arbitral Tribunal to order interim measures unless
the agreement prohibits such power.
 Analysis of Section 9 and Section 17 would lead us to the following conclusions-
 The new arbitration Act empowers the arbitral tribunal to pass orders for giving interim relief while such
power is not vested under the Old Act.
 Powers under Section 17 can be exercised only after the arbitral tribunal is constituted and it stats
functioning.
 Powers of court under section 9 are wide as the words “before, during or after indicate so. A party can
approach the court to seek interim measures of protection even before the arbitration commences.
 Court’s powers are wide and have supremacy in granting interim relief. However interference of court
when Tribunal is constituted is minimum.
 LL.B. (3 YEAR) V SEMESTER

SUBJECT- ALTERNATIVE DISPUTE RESOLUTION

SYLLABUS

UNIT II- ARBITRAL TRIBUNAL AND PROCEDURE

i.)COMPOSITION OF ARBITRAL TRIBUNAL
JURISDICTION OF ARBITRAL TRIBUNAL
ii.) CONDUCT OF ARBITRAL PROCEEDING
iii.) MAKING OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS
iv.) FORMS AND CONTENT OF ARBITRAL AWARD, REGIME OF COST,
TERMINATION OF PROCEEDINGS, CORRECTIONS AND INTERPRETATION OF
AWARD; ADDITIONAL AWARD.

SHORT QUESTION

Q.1) Write a short note on the composition of the Arbitral Tribunal. Give one case related to it.

ARBITRAL TRIBUNAL

 According to section 2(1) (d) of the Arbitration and Conciliation Act, 1996, an arbitral tribunal means a sole
arbitrator or a panel of arbitrators.
 There should be an odd number of arbitrators present in the tribunal so that they can reach a fair decision
 Whenever a commercial dispute arises between two or parties, and they decide to resolve the dispute through
arbitration, an arbitral tribunal is to be set up. It consists of one or more arbitrators that adjudicate and resolve the
dispute and provide an arbitral award.

COMPOSITION OF THE ARBITRAL TRIBUNAL

 Chapter III of the Arbitration and Conciliation Act, 1996 down the provisions for the Composition of an Arbitral
Tribunal. Also, Rule 22 of the Rules of Arbitration laid down by the Indian Council of Arbitration states that
when an application for arbitration procedure is received.
 The Council takes necessary steps for the constitution of an arbitral tribunal to adjudicate the disputes or
differences between parties. Several provisions concerning the composition of an arbitral tribunal are as follows-
 Section 10 of the Act mentions the number of arbitrators that shall be a part of the arbitral tribunal.
 According to clause (1) of the Section, the parties to the dispute are free to mutually decide the number of
arbitrators that shall constitute the arbitral tribunal to adjudicate the dispute. It is, however, necessary that the
number of arbitrators appointed shall be an odd number and not an even one ensure that there are no ties.
 Section 10 also states that if the parties to the dispute are unable to decide the number of arbitrators, in that case,
only one arbitrator shall be appointed.
 Rule 22 of the Rules of Arbitration provides that if the value of the claim made under arbitration is One Crore or
less, a single arbitrator can resolve the dispute if the parties agree to it. In cases where the claim to the dispute
exceeds one Crore, the arbitral tribunal shall be composed of three arbitrators with the agreement of the parties.

CASE- In Narayan Prasad Lohia vs, Nikunj Kumar Lohia, The Supreme Court observed that if two arbitrators are
appointed for an Arbitral Tribunal instead of three, and they give an award through common opinion, there will be no
frustration of proceedings.
LONG QUESTION

Q.2) What are the prerequisites for arbitral tribunal to rule on its own jurisdiction? Examine the effects of failure
to raise plea regarding jurisdiction under mandatory time. (2012, 2014, 2015, 2016, 2022)

COMPETENCE OF ARBITRAL TRIBUNAL TO RULE ON ITS JURISDICTION-SECTION 16

 The arbitral tribunal according to the doctrine of kompetenz kompetenz has the authority to decide on its own
jurisdiction
 According to Section 16, the arbitral tribunal has the authority to decide whether it has the jurisdiction to
adjudicate the dispute or not.
 The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the
existence or validity of the arbitration agreement, and for that purpose-
 An arbitration clause which forms part of a contract shall be treated as an agreement
 A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity
of the arbitration clause.
 A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the
statement of defense.
 A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter
alleged to be beyond the scope of its authority is raised during the arbitral proceedings.
 The arbitral tribunal may admit a later plea if it considers the delay justified.
 The arbitral tribunal shall decide on a plea and make an arbitral award.
 A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in
accordance with section 34.

EFFECTS OF FAILURE TO RAISE PLEA REGARDING JURISDICTION UNDER MANDATORY TIME

 Sub-clause 2 of section 16 has two components – first, the last stage to challenge the jurisdiction of the tribunal is
before the submission of a statement of defense, and second, that merely because a party participated in the
appointment of arbitrator does not necessarily preclude itself from raising the plea of jurisdiction. \
 In MSP Infrastructure v. M.P. Road Development Corporation, the Madhya Pradesh High Court permitted a party
to amend its pleadings while challenging the award under section 34, to include the ground for challenge of
jurisdiction. This view was subsequently set aside by the Supreme Court which went on to hold that from the bare
perusal of the Act, it is clear that the objection of jurisdiction shall be taken after the submission of the statement
of defense.
 However, an opposing view has been taken in the case of Lion Engineering Consultants v. the State of M.P.,
wherein a fresh plea over-ruling the plea of allowing the amendment by the M.P. High Court, the Supreme Court
allowed the objection to the arbitral tribunal’s jurisdiction to be raised under a Section 34 Petition before the
Court, grossly defeating the provisions of Section 16 and the purpose of minimal court intervention.
 Hence, in the absence of a statutory mandate to clarify the stance, the Courts have adopted a flexible approach and
preferably left the issue at the discretion of the arbitral tribunal and the Civil Courts.
 The Court upheld the flexibility granted upon the arbitral tribunal in the case of Pankaj Arora v. AVV Hospitality,
wherein the Court refused to construe section 16(5) as a legal mandate upon the arbitral tribunal to adjudicate any
objection to jurisdiction at the outset of a dispute.
LONG QUESTION

Q.3) Define arbitral award and discuss its form and contents. What are the statutory grounds for setting aside an arbitral
award? (2017, 2022)

ARBITRAL AWARD

 An arbitration award is the award granted by the arbitrator in their decision. This award can be money one party has to
pay to the other party.
 An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in arbitration, and is
analogous to a judgment in a court of law.
 Monetary compensation, specific performance, injunction, declaratory relief, punitive damages etc

FORMS AND CONTENT OF THE ARBITRAL AWARD

 The form and content of arbitral awards are governed by Section 31 of the Arbitration and Conciliation Act.
 An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.
 In arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral
tribunal shall be sufficient so long as the reason for any omitted signature is stated.
 The arbitral award shall state the reasons upon which it is based, 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.
 The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the
award shall be deemed to have been made at that place.
 After the arbitral award is made, a signed copy shall be delivered to each party.
 The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with
respect to which it may make a final arbitral award.
 A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two
per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of
payment

STATUTORY GROUNDS FOR AETTING ASIDE OF AN ARBITRAL AWARD

 An award can be set aside only if the award is against the public policy of India (Section 34)

 An application by any of the party can be made for setting aside an arbitral award.

 An arbitral award may be set aside by the Court only if-

 The party making the application, establishes on the basis of the record of the arbitral tribunal that

 a party was under some incapacity, or

 The arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication
thereon, under the law for the time being in force, or

 The party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case, or

 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.

 The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the
parties

 If the Court 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.

LONG QUESTION

Q.4) Discuss the conduct of arbitral proceeding , also explain the procedure for the termination of the arbitral
proceeding. (2012, 2015, 2016)

COURTS OF ASSISTANCE IN ARBITRATRAL PROCEEDINGS (SECTION 27)

 The arbitral tribunal, or a party with the approval of the arbitral tribunal, may apply to the Court for assistance in
taking evidence.

 The application shall specify-

 The names and addresses of the parties and the arbitrators,

 The general nature of the claim and the relief sought,

 The evidence to be obtained, in particular-

(i) The name and address of any person to be heard as witness or expert witness and a statement of the
subject-matter of the testimony required,

(ii) The description of any document to be produced or property to be inspected.

 The Court may within its competence and according to its rules on taking evidence, provide directly to the arbitral
tribunal.

 The court may, follow the same proceedings with the witness as well,

 Any person failing to attend in accordance with the process, or makes any of the default, or guilty of any
contempt to the Arbitral Tribunal during the conduct of arbitral proceedings, shall be subject to the like
disadvantages, penalties

THE PROCEDURE FOR THE TERMINATION OF THE ARBITRAL PROCEEDING

 The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal given
below,

 The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where-

 The claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal
recognizes a legitimate interest on his part in obtaining a final settlement of the dispute, or

 The parties agree on the termination of the proceedings, or

 The arbitral tribunal finds that the continuation of the proceedings has for any other reason become
unnecessary or impossible, or

 If agreed by the parties, or

 The continuation of the arbitral proceedings has become impossible or irrelevant considering the present
facts of the case.

 Also, the termination of the arbitral proceedings terminates the mandate of the arbitral tribunal and the
arbitral tribunal becomes functus officio.

 A party with notice to the other party may request, within thirty days from the receipt of the arbitral
award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral
proceedings but omitted from the arbitral award.
  The arbitral proceedings are terminated either by the final arbitral award or by an order of the arbitral
tribunal terminating the arbitral proceedings

Q.5) WRITE A SHORT NOTE ON CORRECTIONS, INTERPRETATION OF AWARD AND

ADDITIONAL AWARD.

CORRECTIONS, INTERPRETATION OF AWARD AND ADDITIONAL AWARD (SECTION 33)

 Section 33 of the arbitration act talks about corrections, interpretation of award and additional award.
 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 so 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.
 If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall make the
correction or give the interpretation within thirty days from the receipt of the request and the
interpretation shall form part of the arbitral award.
 The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-section (1), on its
own initiative, within thirty days from the date of the arbitral award.
 Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty
days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to
claims presented in the arbitral proceedings but omitted from the arbitral award.
 If the arbitral tribunal considers the request made under sub-section (4) to be justified, it shall make the
additional arbitral award within sixty days from the receipt of such request.
 The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction,
give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5).
 Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral
award made under this section.

ADDITIONAL AWARD

 Such an award is made upon application by a party when a claim or claims are presented in the arbitral
proceedings but omitted from the arbitral award.
 As per the Act, such a request for an additional award must be made within thirty days from the receipt
of the arbitral award. Notice of the same must also be given to the other party.

The main difference to be noted in a correction/interpretation given and an additional award given is
that-

 The correction and interpretation made, merges with the original award. This is because there are only
calculative or clerical changes to be made.
 An additional award by its name itself implies that another award is granted. This award does not merge
with the original award.