Arbitration (short notes 2)

Award

Award in arbitration means an “order passed  by the arbitrator at the end of proceedings". That is final decision which cannot be changed after the binding of disputes.

Valid award essentials

1.    Must be in  written/document( in agreed language)

2.    Must follow the agreement(doesn’t be outside the scope of agreement)

3.    It is the final order and decisions taken must refer all the matters of disputes.

4.    Must be certain & legal.

5.    State the reason of arriving award.

6.     It must include the cost of proceedings and all fees and expenses throughout termination.

7.    Date must be mentioned and signed by arbitrator(date of award)

8.    Copy of the award must send to both disputing parties.

 Juridical intervention

 According to sec (5) of the Arbitration and Conciliation Act 1996, court will not interfere in arbitration proceedings, but it can help and guide in certain circumstances.

1.   Making reference in a pending suits –sec (8)

In case of any pending suits handled by arbitrator for long period without declaration award, the court will interfere and may ask whether the arbitrator can settle the dispute or the court may overrule the case. If the arbitrator agree the court to take arbitration settlement then certain bench of judges will hear and given award to the respective party.

2.   Passing Interim orders-sec (9)

The court will pass few  temporary orders in between the arbitration section which will be in force till the end of arbitration is known as interim orders. The following are some examples of interim orders.

·       Appointment of guardian.

·       Preservation or safeguarding the goods which are involved in the matter of dispute.

·       Securing the amount involved in dispute.

·       Appointment of receiver(partner, person entrusted with duty, nominee)

·       Inspection of any property involved in dispute.

3.   Appointment of arbitrators- sec(11)

If the disputing parties fail to appoint arbitrator within 30 days of filing the case, the high/supreme court has the power to appoint the arbitrator. Even numbers of arbitrators cannot be fixed, odd number of arbitrators 3or 5 persons can be appointed.

4.   Court assistance for claiming  evidence-sec (27)

The arbitration tribunal may apply to court for assistance to get evidence. In certain cases the details of witness and evidence collection must be considered,  before passing orders so the arbitrators need the court assistances. The court assistance will also help the arbitrator in describing any documents submitted by the disputing party.