UNIVERSITY INSTITUTE OF LEGAL

STUDIES (UILS)

COMMERCIAL ARBITRATION:
Finality and Enforcement of Arbitral DISCOVER . LEARN . EMPOWER
Award
 FINALITY AND
ENFORCEMENT
OF ARBITRAL
AWARD
Course Outcome
CO Number Title Level

CO1 Students will be able to learn the basic rules that guide Understand
the arbitration process from start to finish.

CO2 To enable the students to recognize the difference Understand

between arbitration and other law.

CO3 To enable the students to understand the impact of Understand

arbitration on society

Source: https://blog.ipleaders.in/an-overview-of-arbitration-in-india/ 2
 FINALITY AND ENFORCEMENT OF
ARBITRAL AWARD
Finality of Arbitral Awards (Section 35)
• The final arbitral award is binding upon the parties and any persons claiming under them.
• 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.

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 FINALITY AND ENFORCEMENT OF
ARBITRAL AWARD
• In Lachhman Das v. Ram Lal AIR 1989 SC 833, the Court ruled that the award which is required to be
registered under the Registration Act 1908, but has not been registering, cannot be received as evidence of
any transaction affecting immovable property.

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 FINALITY AND ENFORCEMENT OF
ARBITRAL AWARD
Enforcement (Section 36)
• The award of the arbitrator is enforceable on the fulfilment of either of the two conditions:
(i) u/S 34, time limit for making an application for setting aside an arbitral award has expired, or
(ii) such an application has been made but it has been refused.
• If either condition is fulfilled, the award shall be enforced under the Code of Civil Procedure 1908 in the
same manner as if it were a decree of the Court.

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 FINALITY AND ENFORCEMENT OF
ARBITRAL AWARD
• In Khaleel Ahmed Dakhani v. Hatti Gold Mines Ltd. AIR 2000 SC 1926, the award allowed some of the claim of
the appellant and the respondent filed an application u/S 34 for setting aside the award. Earlier, caveat had
been filed by the appellant along with application u/S 9, i.e., interim measures, etc. by court. The appellant
also filed an application u/S 36 for execution of the award without mentioning pendency of application u/S
34, i.e., for setting aside of arbitral award. It was held that the application u/S 36, for enforcement of instant
award could not be entertained.

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 FINALITY AND ENFORCEMENT OF
ARBITRAL AWARD
• Where an application to set aside the arbitral award has been filed in the Court 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 on a separate application made for that purpose.
• Upon filing of an application 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.

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 Assessment Pattern

• What are the provisions related to finality of arbitral awards?

• What are the provisions related to enforcement of arbitral awards?

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 APPLICATIONS

• The students will be able to understand the finality of arbitral awards.

• The students will be able to understand the enforcement of arbitral awards.

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 REFERENCES
Reference Books and Articles
• Dr. S.C. Tripathi, Arbitration and Conciliation Act 1996 (Central Law Publications, 6th edn, 2012)
• Dr. Anupam Kurlwal, An Introduction to Alternative Dispute Resolution System (ADR) (Central Law Publications, 2nd edn,
2014)
• P.K. Basu Majumdar, Law of Arbitration (Universal Law Publishing Co., 2011 edn.)
Reference Websites
• https://www.academia.edu
• https://core.ac.uk/

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THANK YOU