Section 31 of the Act lays down the form and contents of arbitral award which would be passed by the Arbitral tribunal / Arbitrator. The Section says –
(1) An arbitral award shall be made in writing and shall be signed by the Members of the arbitral tribunal.
(2) For the purposes of sub- section (1), 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.
(3) The arbitral award shall state the reasons upon which it is based, unless-
(a) the parties have agreed that no reasons are to be given, or
(b) the award is an arbitral award on agreed terms under section 30.
(4) 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.
(5) After the arbitral award is made, a signed copy shall be delivered to each party.
(6) 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.
(7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made, 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 the date on which the award is made.
(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of eighteen per centum per annum from the date of the award, till the date of payment.
(8) Unless otherwise agreed by the parties,-
(a) The costs of an arbitration shall be fixed by the arbitral tribunal;
(b) The arbitral tribunal shall specify-
(i) the party entitled to costs,
(ii) the party who shall pay the costs,
(iii) the amount of costs or method of determining that amount, and
(iv) the manner a which the costs shall be paid.
Explanation,- For the purpose of clause (a) costs means reasonable costs relating to-
(i) the fees and expenses of the arbitrators and witnesses,
(ii) legal fees and expenses,
(iii) any administration fees of the institution supervising the arbitration, and
(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award.
Section 33 of the Arbitration & Conciliation Act, 1996, provides for correction and interpretation of award; additional award.
By virtue of extensive amendments made in the Act in the year 2016, Section 29A is added wherein now it is provided that Arbitral tribunal must make an Award within 12 months from the date the arbitral tribunal was duly constituted. However, the parties may by consent extend the aforesaid period by 6 months. And if the award is not made within such period of 18 months, then unless, the court extends the period, prior to or after expiry of the aforesaid period on an application by a party, the mandate of arbitrator would stands terminated. Further, as provided in amended section 24, the arbitral tribunal shall, as far as possible, hold oral hearings for the presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on the party seeking adjournment without any sufficient cause.
Further, section 29B is further added wherein a concept of Fast track procedure is contemplated. It provides that the parties may, prior to or at the time of appointment of the arbitral tribunal, agree to a fast track procedure, preferably a sole arbitrator chosen by the parties therein, who shall decide the dispute on basis of written pleadings, documents and submissions filed by the parties without any oral hearing. However, oral hearing may be held if all parties request or if the Arbitral tribunal considers it necessary. The award should be made in this procedure within a period of 6 months from the date the arbitral tribunal was duly constituted.
Further, section 31 of the Act is amended whereby now it is provided that the amount awarded by the arbitral tribunal would carry higher interest by 2% p.a. more than the current rate of interest, from the date of the award to the date of payment, unless otherwise specified by the arbitral tribunal. The expression “current rate of interest” shall have the same meaning as assigned to it under clause (b) of section 2 of the Interest Act, 1978.
Further, section 31A is inserted wherein comprehensive provisions are made touching upon every attribute of the costs.
In the backdrop of the provision of new section 11(14), a Fourth Schedule is inserted which prescribes a Model Fee which may be charged by Arbitral Tribunal, subject to Rules framed by the respective High Courts in that behalf.
The amendments are applicable to Arbitration proceedings which have commenced on or after 23.10.2015, or, the parties may agree to the applicability of the amendments to their pending proceedings. Arbitration proceeding commences when a Notice is given by the Claimant u/s 21 of the Act, to the Respondent, informing that whereas “disputes” have arisen, Arbitration Clause is invoked.
When Proceedings before the Arbitrator are said to terminate. (S.32)
Section 32 of the Act provides that the arbitral proceedings terminate on final arbitral award being made.
The arbitral proceedings shall also be terminated where the claimant withdraws his claim, unless the respondent objects and the arbitral tribunal recognizes a legitimate interest on his part, in obtaining a final settlement of the dispute;
The arbitral proceedings shall also be terminated where the parties agree on the termination of the proceedings;
The arbitral proceedings shall also be terminated where the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or has become impossible.
Correction, Interpretation, Additional Award (S.33)
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