Introduction

Making of arbitral award and termination of proceedings is completely addressed

with in CHAPTER VI of the Arbitration and Conciliation Act, 1996. From sections
28 to 33 it’s all about “making of arbitral award and termination of proceedings”.
This research paper won’t solely justify the important bare provisions however
will also lay specific emphasis on Section 32. This section deals with the
“Termination of proceedings”.
Arbitrator
The role of an arbitrator is to resolve disputes that the parties have in agreement
to submit to arbitration. The decisions of the arbitrator require a document
subject to certain formalities, and referred to as the arbitral award. The content
and form of an arbitral award, and also the discretion enjoyed by arbitrators in
creating an award can essentially vary according to the procedural law applicable
to the arbitral procedure, the powers presented by the parties upon the arbitrator
under the applicable arbitration agreement, and also the specific sort of
arbitration used.

Arbitral Award under Arbitration and Conciliation Act,

1996
According to the definition given under Section 2(c) it’s clear that the 1996 Act
doesn’t provide a concrete definition of Arbitral awards. It solely affirms that
arbitral awards include interim awards too. However, the ultimate call given by
the arbitral tribunal [as per Section 2(d)] is the arbitral award.
Accordingly, an arbitral award could be defined as the binding and final decision
made by an arbitral tribunal or a sole arbitrator, that resolves, wholly or in part,
the dispute submitted to his/its jurisdiction.
The award can give a spread of remedies to the parties depending on the issue
of the dispute. This include:
● Injunctive Remedies: Once a court orders that a party should take an
action or stop an action, it’s called an injunction. An arbitrator may offer the
same award in a dispute wherever one party needs such relief.
 ● Money: Several award can decide that one party will need to pay the
opposite party based on the contract or dispute controlling the award.
● Creative Relief: Typically, the dispute between the parties can have
several underlying emotions and interests that are driving the parties.
Whereas the arbitrator will not have as much freedom as a mediator to
assist the parties come to a reasonable agreement, an arbitrator could
have one party issue an apology or provide a positive employment
reference.
● Incentives: An arbitrator could add incentives for certain behaviours to
encourage the parties to suits the award.

Case Laws dealing with Arbitral Award under Arbitration

and Conciliation Act, 1996
Calcutta High Court described an arbitral award as a result of the consensual
justice of the parties[1]. Within the case of Bhajahari v. Bihari arbitral award was
outlined as the final determination of the claim or issue, by an arbitrator of the
parties of their own choice[2].
● In Harinarayan Bajaj v. Sharedeal Finance[3] it was held that as per
definition under Section 2 an arbitral award includes an interim award.
However, an interim award to be an award had to determine a claim with
finality. Once the claim is determined, the Tribunal couldn’t adjudicate more
thereon claim and become functus officio. Moreover, the procedural orders
passed throughout the arbitral proceeding is essentially excluded from the
concept of award.
● In Paradise Hotel v. Airport Authority of India Ltd[4] the enforcement of an
award is complete only when it has been implemented under CPC within
the same manner as if wee a decree of court.
● In Pandit Munsi Ram and associates v. Union of India[5] it was interpreted
that since an arbitral award is taken into account a decree as under
Section 35 of the 1996 Act, the court held that an arbitral award is an order
which determines the rights of parties involved by finally determining the
actual claim or issue within the course of arbitral proceedings.

Types of Arbitral Award under Arbitration and

Conciliation Act, 1996
There are two types of awards –
 ● Domestic awards- this sort of award is governed under Part I of the
Act
As per Section 2(7), Domestic awards, are altogether dealt with in part one till
Section 43 of the Arbitration and conciliation act whereas Sections 44 to 60 deal
with different kinds of foreign arbitral awards.
The arbitral award is worth solely to the extent of the parties’ ability to enforce the
terms they ab initio prescribed. Section 36 lays down provisions for the speedy
enforcement of the domestic awards. Under this very section, it is made clear
that a domestic award is enforceable within the same manner as that of a decree
passed by a court. In domestic arbitrations, if the assets of the parties are almost
in one and the same jurisdiction, the enforcement of domestic award abundant
easier. And it is easier to enforce an arbitral award than judgment by a court.
● Foreign awards- this type is subsequently governed under Part II
Part II of Chapter 1 deals with the New York Convention awards. In this Section
48 deals with the refusal of enforcement of the foreign award. Chapter 2 Section
57 deals with the provisions regarding the enforcement of Geneva Convention
awards.

In Serajuddin v. Michael Golodetz[6] the Calcutta High Court laid down the
essential conditions of a ‘foreign arbitration’ where the award is further called a
foreign arbitral award, the main points of this case were:
● Arbitration should have been held in foreign a foreign country
● By a foreign arbitrator
● Arbitration by applying foreign laws
● One of the parties consists of foreign nationals

Provisions of Arbitration and Conciliation Act, 1996

dealing with Arbitral Award
● Section 28 of the Arbitration and Conciliation Act, 1996
An Arbitrator should decide the dispute in justice and in good faith. However,
there’s a condition precedent, given that each parties expressly authorize an
arbitrator to adjudicate then solely he will decide the dispute between them.
Domestic arbitrations should follow Indian arbitration law. However, for
international arbitrations agreements primarily based in India, the arbitral tribunal
should follow the laws the parties have agreed to apply in their agreement to
settle disputes. The selected law as agreed within the agreement should be
construed unless expressly agreed otherwise.
It should also be kept in mind that while applying the law of a unique legal
system, the substantive laws of India shouldn’t be in conflict with them. Within the
absence of any such agreement or any indication of what would be the
applicable laws once a dispute arises, the arbitral tribunal shall apply laws that
are applicable and relevant to the dispute.
Furthermore, the arbitral tribunal should apply provisions solely consistent with
the terms of the contract between parties. However, the tribunal should
additionally take into account the usages and also the current trade practices that
are relevant to the contract.
● Section 29 of the Arbitration and Conciliation Act, 1996
The decision of the Arbitral Tribunal are going to be in the majority. The arbitral
award is the conclusive stage of the arbitral proceedings. The choice made by
the majority of the members of the tribunal are going to be declared in the form of
an award.
● Section 30 of the Arbitration and Conciliation Act, 1996
Section 30 permits the encouragement settlement amongst the parties by the
arbitral tribunal. If the parties with success conform to a settlement then the same
can be incorporated within the form of an award. Such settlements are recorded
because the Arbitral award on agreed terms. Such amicable arbitral awards
should be create according to Section 31. It has the same effect and status as
that of an arbitral award passed by an independent tribunal to substance a
dispute.
● Section 31 of the Arbitration and Conciliation Act, 1996
According to Section 31 Arbitral awards shall be in signed and writing by all the
members of the tribunal.

The reason applied behind the award should be explicit clearly. However, if the
parties have agreed for settlement then no reason behind an arbitral award on
agreed terms, need to be showcased. The date of declaration of an Award and
also the place wherever it’s made shall be mentioned. Place of the award is
additionally called as the seat of arbitration. A replica of the award shall be
issued to every party. Arbitral Tribunals can also pass an interim award.
In the case of Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya[7] non-signatories
to an arbitration agreement can even participate in arbitration proceedings as
long as the necessary and proper parties to the agreement are present. This is
often to both Indian seated International Commercial Arbitration and domestic
arbitration.
Termination of Arbitral Proceedings under Arbitration and
Conciliation Act, 1996
Section 32 of the Arbitrational and Conciliation Act, 1996 is totally coherent with
Article 32 of UNCITRAL Model Law. According to Section 32(1) of the Act
termination of Arbitral proceedings takes place once the final award declared by
the arbitral tribunal. The other three grounds of termination of arbitral
proceedings are given under Sub-section 2 of Section 32.
To terminate the arbitration proceedings arbitral tribunal shall issue an order:
● The parties themselves agree to terminate the proceedings.
● If the arbitral tribunal finds that the continuation of the proceedings is either
unnecessary or impossible for any other reason.
● the plaintiff withdraws their claim. It can also be terminated if the
respondent objects to the arbitral award. Looking at which the arbitral
tribunal come to a conclusion that it has a legitimate interest in obtaining a
final settlement.
In the last, The mandate of the arbitral tribunal will terminate with the termination
of the procedure itself. Sub-section (3) of this section lays down that the above
provisions are subject to Section 34(4) and section 33.

Recent Developments with respect to Termination of

Proceedings
In the case of Sai Babu v. M/S Clariya Steels Private Limited[8] in 2019 the
Supreme Court held that once the sole arbitrator terminates the arbitration
proceedings under Section 32(2)(c) of Arbitration and Conciliation Act, 1996
(“Arbitration Act”), the same cannot be subsequently recalled. In order to reach a
conclusion in the case of Sai Babu v. M/S Clariya Steels Private Limited the Apex
Court chalked out a difference between the termination of Arbitral proceedings
under Section 32 and Section 25 of the Arbitration and Conciliation Act.
Case of SREI Infrastructure Finance Ltd v. Tuff Drilling Private Ltd[9] where it
stated that “On the termination of proceedings under Section 32 sub-section (1)
and (2), Section 32 sub-section(3) additional contemplates termination of
proceedings by Arbitral Tribunal on any other grounds or due to the fact that
carrying out the arbitral proceedings is needless. The conditions laid down under
section 32 is missing in Section 25. However, if the claimant shows decent cause
as to why he desires the arbitral proceedings then it may be recommenced. The
Apex court conjointly noted that section 32(3) provides for the termination of the
mandate of the Arbitrator once a termination order is passed under section 32.

Conclusion
The termination of proceedings procedure and making an arbitral award laid
down is pretty straightforward and simple. The Supreme Court has sometimes
come up with suggested amendments and necessary interpretations. It’s
interesting to note that the termination of arbitral proceedings is different under
Section 32 and Section 25. The conclusiveness of award marks the termination
of proceedings under Arbitration and Conciliation Act under Section 32 along with
three other grounds. Not several radical judgments are passed with regard to the
above subject however Sai Babu v. M/S Clariya Steels Private Limited holds
good laThe parties themselves agree to terminate the proceedings.
● If the arbitral tribunal finds that the continuation of the proceedings is either
unnecessary or impossible for any other reason.
● the plaintiff withdraws their claim. It can also be terminated if the
respondent objects to the arbitral award. Looking at which the arbitral
tribunal come to a conclusion that it has a legitimate interest in obtaining a
final settlement.
In the last, The mandate of the arbitral tribunal will terminate with the termination
of the procedure itself. Sub-section (3) of this section lays down that the above
provisions are subject to Section 34(4) and section 33.

Recent Developments with respect to Termination of

Proceedings
In the case of Sai Babu v. M/S Clariya Steels Private Limited[8] in 2019 the
Supreme Court held that once the sole arbitrator terminates the arbitration
proceedings under Section 32(2)(c) of Arbitration and Conciliation Act, 1996
(“Arbitration Act”), the same cannot be subsequently recalled. In order to reach a
conclusion in the case of Sai Babu v. M/S Clariya Steels Private Limited the Apex
Court chalked out a difference between the termination of Arbitral proceedings
under Section 32 and Section 25 of the Arbitration and Conciliation Act.
Case of SREI Infrastructure Finance Ltd v. Tuff Drilling Private Ltd[9] where it
stated that “On the termination of proceedings under Section 32 sub-section (1)
and (2), Section 32 sub-section(3) additional contemplates termination of
proceedings by Arbitral Tribunal on any other grounds or due to the fact that
carrying out the arbitral proceedings is needless. The conditions laid down under
section 32 is missing in Section 25. However, if the claimant shows decent cause
as to why he desires the arbitral proceedings then it may be recommenced. The
Apex court conjointly noted that section 32(3) provides for the termination of the
mandate of the Arbitrator once a termination order is passed under section 32.

Conclusion
The termination of proceedings procedure and making an arbitral award laid
down is pretty straightforward and simple. The Supreme Court has sometimes
come up with suggested amendments and necessary interpretations. It’s
interesting to note that the termination of arbitral proceedings is different under
Section 32 and Section 25. The conclusiveness of award marks the termination
of proceedings under Arbitration and Conciliation Act under Section 32 along with
three other grounds. Not several radical judgments are passed with regard to the
above subject however Sai Babu v. M/S Clariya Steels Private Limited holds
good law.