MODULE- III

ARBITRAL AWARD:-

1. The arbitral award shall be in writing. An oral decision is not an award under the
Arbitration and Conciliation Act, 1996;

2. The award shall be signed by the members of the arbitral tribunal;

3. In arbitral proceedings with more than one ar1bitrator 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;

4. Date and place are to be mentioned in the award in accordance with Section 20 of the Act
and the award should be deemed to have been made at that place;

5. The arbitral award shall state the reasons upon which it is made;

6. If the agreement indicates that no reasons to be given then it is not required to state the
reasons;

7. If the award is made on the basis of the settlement on the agreement between the parties
to the dispute, then no reasons are to be given;

8. Recording of reasons involves analysis of the dispute to reach a logical conclusions;

9. Award can be divided into four parts, which are preamble, findings of the facts,
submission of the parties and conclusion of the tribunal-

a) The preamble of the award may contain reference to the arbitration, constitution of the
Tribunal, procedures adopted by the Tribunal etc.;

b) The second part may contain points at issue which may be divided into two, issue of fact
and issue for law;

c) The third part may contain argument for the claimant, argument for the respondents and the
findings of the tribunal;

d) Conclusions of the Tribunal, i.e., award of the Tribunal is the fourth part.

10. The Arbitral Tribunal may award interest at such rate as it deems reasonable on the whole or
any part of the money for the whole or any part of the period between the date on which the
cause of action arose and on the date on which the award is made;
11. Unless otherwise agreed to by the parties the cost of arbitration shall be fixed by the
Tribunal. The Tribunal shall specify the party entitled to costs, the party who shall pay the
costs, the amount of costs or method of determining the award and the manner in which the
costs shall be paid;

12. The costs include the fees and expenses of the arbitrators and witnesses, legal fees and
expenses, any administration fees of the institution supervising the arbitration and any other
expenses incurred in connection with the arbitral proceedings and the arbitral award;

13. The arbitral award is required to be on stamp paper of prescribed value as applicable at the
place of making the award;

14. After making the award, a signed copy should be delivered to each party for appropriate
action like implementation of the award or recourse against the arbitral Tribunal.

FINALITY OF THE AWARD:

The award shall be final and binding on the parties and persons claiming under it
subject to the time limit prescribed under Sec. 33 and 34 of the Act. The time limits are as
follows:

1. Correction and interpretation of the award – 30 days from the receipt of the award;

2. Tribunal making a correction or giving an interpretation on an receipt of application for

correction/interpretations – 30 days of the receipt of the request (this period may be
extended by the Tribunal);

3. Tribunal making a correction on its own – 30 days from the date of award (This time
cannot be extended by the Tribunal);

4. Party applying for an additional award against the claim omitted in the award – 30 days
from the date of receipt of the award;

5. Tribunal making the additional award – 60 days of the receipt of the request (This period
may be extended by the Tribunal). The additional award should have the aspects of the
award as mentioned above.

6. Application for setting aside the award – 3 months from the date of receipt of award or
the date of disposal of the application in the above categories (The court can extend to a
maximum of 30 days).

In the cases of points from 1 to 5 the award becomes final and binding only after the expiry of
the above time limits for the application or the disposal of the application. In the case of point
No. 6, the award becomes final and binding if no application is made within the specified period
of making the application and the grace period of 30 days. If the application for setting aside the
award has been made in time and admitted by the Court, the award shall not become final and
binding till the court rejects the application.

APPEALABLE ORDERS:-

Section 37: Appealable Orders under the Arbitration and Conciliation Act, 1996

The Arbitration and Conciliation Act, 1996 (the Act) has been amended by the Arbitration and

Conciliation (Amendment) Act, 2015 and come into force with effect from 23rd October 2015,

unless otherwise provided in the Act

Section 37 of the Act is given below:

1) An appeal shall lie from the following orders (and from no other) to the Court authorized by

law to hear appeals from original decrees of the Court passing the order, namely-

a) refusing to refer the parties to arbitration under Section 8;

b) granting or refusing to grant any measure under Section 9;

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

2) An appeal shall also lie to a Court from an order of the arbitral tribunal-

a) accepting the plea referred to in sub-section (2) or sub-section (3) of Section 16; or

b) granting or refusing to grant an interim measure under Section 17.

3) 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.

An appeal lies
under section 37(1) against an order of the court granting or refusing to grant any measure under
section 9 and also against setting aside or refusing to set aside an award. An appeal shall also lie
to a court under section 37(2) against an order of the arbitral tribunal accepting the plea referred
to in section 16 (2) or (3) or granting or refusing to grant an interim measure under section 17.
There is no provision for appeal against orders under section 11 appointing or refusing to appoint
an arbitrator.

Section 37(3) provides that no second appeal shall lie from an order in appeal. The right
of appeal to the Supreme Court is not affected.
 In ITI Ltd. v. Siemens Public Communication Network Ltd (AIR 2002 SC 2308) the
supreme court has held that an order passed by a civil court in an appeal under section 37 of the
Act is revisable by the High Court under section 115 of CPC. The section only bars a second
appeal and not revision. The applicability of CPC has also not been expressly prohibited. The
court said that the application of the Code cannot be ruled out on the basis of an inference. It
cannot be said that a revision under section 115 would be a judicial interference in the process of
arbitration of such a nature as is not contemplated by section 5 of the Act.

In Lakme Ltd. v. Plethice Pharl Ltd. (2003)4 Raj 649 (MP) the court said that as per
section 115 CPC, the High Court may entertain a revision petition when a subordinate court has
refused to exercise a jurisdiction vested in it. The rejection of the application for framing of
issues was a refusal to exercise jurisdiction. This was an error causing failure of justice. The
revision petition was accordingly maintainable.

The special leave petition was held to be not maintainable since an efficacious alternate
remedy of revision under section 115 of CPC available. Merely because the second appeal is
barred by the provision of section 37(3), remedy of revision does not cease to be available to the
petitioner since the City civil Court deciding an appeal under section 37(2) remains a court
subordinate to High Court within the meaning of section 115 CPC (AIR 2002 SC 3695)

If the appeal lies to High Court the limitation would be 90 days and if it lies to any other court it
would be 30 days from the date of the order.