WHAT IS ARBITRAL AWARD
An arbitral award is analogous to a judgement in a court of law, it is a determination on the merits by an arbitral tribunal in Arbitration. An arbitration award is the award granted by the tribunal to either of the party. It is usually a monetary award but it can also be a non-monetary award, i.e., injunction to stop a certain business practice or adding certain employment incentive.
TYPES OF ARBITRAL AWARD
There are certain types of arbitral awards which can be made.[i] They are:
- PARTIAL AWARD: It is a type of award in which certain elements of the parties’ claim has been determined. However, the parties can continue arbitrating certain other remaining issues which are needed to be resolved before the final award is determined.
- INTERIM AWARD: Interim award is a temporary award which is given by the arbitral tribunal until the final decision is given. A provisional award can only be made when the parties agree that “the arbitral tribunal may have the power to order on a provisional basis any relied which it would have power to grant in a final award.”
- CONSENT AWARD: Consent award comes into play usually when the parties have reached a settlement between them and agreed to terms, which are then incorporated into an award. It can be enforced similar to a judgment by consent.
- DRAFT AWARD: Draft award is not a binding award on the parties until or unless it has been affirmed by the tribunal.
- PERFORMANCE AWARD: In contrary to the monetary award which is mostly given in arbitration, performance award is an award in which a party can be ordered to perform specific works, hand over goods or rights.
- FINAL AWARD: The final award is made in writing and signed by all the arbitrators. It contains all the reasons and state where the arbitration took place. Final award usually ends the proceedings.
- ADDITIONAL AWARD: Generally, once a final award is made, the arbitral tribunal has no further authority. But the parties can request for an additional award on undecided matter still in dispute.
NECESSARY ELEMENTS FOR AWARDING ARBITRAL AWARD
Certain essential elements of an arbitral award are:[ii]
- The award should be in written form.
- The award is to be signed by the arbitrator(s).
- The award shall consist the reasons and statement for the passing of award.
- The award shall contain the date and place at which the arbitration took place.
REBUTTAL OF ARBITRAL AWARD
Section 34[iii] of Chapter VII of the Arbitration and Conciliation Act, 1996 deals with the recourse against arbitral tribunal. Section 34 states certain points in accordance to which an award can be set aside.
An award may be set aside by the Court if:
- A party was under some incapacity, or
- The arbitration agreement is not valid under the law which the parties have subjected it, or
- The arbitral award deals with a dispute which is not in relation within the terms of the submission to arbitration, or
- It contains decisions on matters beyond the scope of the submission to arbitration.
FINALITY AND ENFORCEMENT OF ARBITRAL AWARD
Section 35 and Section 36 of Chapter VIII of the Arbitration and Conciliation Act, 1996 deals with the finality and enforcement of arbitral awards.
Section 35[iv] states that an arbitral award shall be final and binding on the parties and persons claiming under them respectively.
Section 36[v] deals with the enforcement of domestic awards. It provides that an award shall be enforced once the time for making an application to set aside the award under Section 34 of the Act has expired. Such awards are to be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in such a manner as it is a decree of the court.
It can be well concluded that Arbitration is an important dispute resolution method which a lot of people look up to and hence it is of great significance to determine the correct arbitral award while considering the facts, issues and argument of both the parties. The award decided by the tribunal should be just, impartial and binding on both the parties.
[iii] The Arbitration And Conciliation Act, 1996, §34.
[iv] The Arbitration And Conciliation Act, 1996, §35.
[v] The Arbitration And Conciliation Act, 1996, §36.
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