Scribd
Upload
19 views

Arbitration: The Virtue of Justice Consists in Moderation, As Regulated by Wisdom Aristotle

Uploaded by

khanahmed.5720
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
19 views

Arbitration: The Virtue of Justice Consists in Moderation, As Regulated by Wisdom Aristotle

Uploaded by

khanahmed.5720
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

ARBITRATION

One well-recognized type of alternative dispute resolution (or "ADR") is arbitration.


Parties to disputes are resorting to arbitration to resolve their differences instead of
engaging in expensive and time-consuming litigation through formal court processes.
The UK courts strongly advise parties to give alternative dispute resolution (ADR)
careful thought before taking a case to trial.

To obtain the fair resolution of disputes by an impartial tribunal without needless


delay or expense" is the stated goal of arbitration. Parties can hear their issue in a less
formal environment through arbitration, which often takes less time and costs less
than going to court. The fact that arbitration sessions are private and the results are
kept confidential is a bonus.

MEANING OF ARBITRATION

An arbitral award is the decision rendered by an arbitration tribunal at the conclusion


of an arbitration proceeding. This decision resolves the disputes that the parties have
submitted to arbitration. Arbitral awards serve a function similar to a court judgement,
providing a binding resolution to the conflict between the disputing parties.

The virtue of justice consists in moderation, as regulated by wisdom”


By-
Aristotle
An arbitration hearing can be conducted by a sole arbitrator or a panel of arbitrators,
called a tribunal. A tribunal is usually an odd number of arbitrators to avoid a split
decision). Fees will be payable to the arbitrators. The parties are free to agree on the
powers that may be exercised by the arbitral tribunal during the proceedings; they
may also be represented by a lawyer during the process. The arbitrators are often
appointed for their technical knowledge of the issues in dispute; however, they can
also have the power to appoint an expert, legal advisor or assessor to assist on
complex points.

The decision of the arbitral tribunal is called an “Award” (even when the
Claimant’s claim fails and no damages are paid), it is just as final and binding as a
court judgment. Final awards cannot usually be appealed (although they can be
challenged in limited circumstances such as bias). Courts generally try to uphold the
jurisdiction of arbitrators, and therefore challenges waged on these grounds are rarely
successful. However, any remedy awarded must be certain and capable of
performance.

The parties are free to agree what costs of the arbitration are recoverable. If there is
no such agreement the tribunal will award the recoverable costs of the arbitration on
such a basis as it thinks fit.

Awards are not only made for damages. Parties can, for example, obtain injunctions
ordering or prohibiting the doing of an act, specific performance of a contract or the
rectification or cancellation of a deed or contract.

KEY CHARACTERISTICS OF ARBITRATION

1) Binding: Arbitral awards are legally binding on the parties involved and can be
enforced like a court decree.
2) Finality: Generally, arbitral awards are final and cannot be appealed, though
they can be challenged on specific grounds such as procedural misconduct or
public policy violations.
3) Content: Typically includes the tribunal’s decision on the merits of the case,
the reasoning behind the decision and any applicable remedies or damages .

LEGAL FRAMEWORK FOR ARBITRAL AWARDS IN INDIA

The Arbitration and Conciliation Act, of 1996, governs the arbitration process in
India and provides a comprehensive framework for the making and enforcement of
arbitral awards. Key provisions relevant to arbitral awards include:

❖ Section 31: Outlines the form and content of arbitral awards, ensuring clarity
and enforceability.
❖ Section 34: Provides the grounds for setting aside an arbitral award, such as
incapacity of parties, invalid arbitration agreement, lack of proper notice and
issues of public policy.
❖ Section 36: Deals with the enforcement of arbitral awards, treating them as
binding and executable as a court decree unless set aside by a court.
❖ Section 37: Allows for appeals against certain orders, including those related
to interim measures and setting aside or refusing to enforce an award.

WHAT ARE THE TYPES OF ARBITRAL AWARDS?

• Interim Award – This is a temporary award until the tribunal has given its final
decision. A provisional award can only be made if the parties have agreed that
“the tribunal may have the power to order on a provisional basis any relief
which it would have power to grant in a final award (s.39 Arbitration Act 1996).
This includes;

1. Making a provisional order for the payment of money or the


disposition of property as between the parties; or
2. An order to make an interim payment on account of the costs of
the arbitration.

• Partial Award – Some elements of the parties’ claim have been


determined but other issues remain and need to be resolved before the
final award is made. Parties can continue arbitrating the remaining issues.

• Consent Award – Usually the parties have reached a settlement and agreed
to terms which are then incorporated into an award which can be enforced
similar to a Judgment by consent. A consent award enables one party to
take enforcement proceedings when another party fails to comply with the
terms of the settlement. Consent awards usually expedite the conclusion of
arbitration proceedings.

• Performance Award – It is most common to see awards made in monetary


terms, however, a party can be ordered to perform specific works, hand
over goods or rights. For example, a contractor may be required to carry
out remedial works in a building to ensure work is finished to the quality
required. The difficulty is that these types of award create grounds for
further dispute. An arbitrator should award a monetary award where
possible in these instances to avoid escalation of conflict.

• Draft Award -This is not binding on the parties until it has been confirmed
by the tribunal.

• Final Award – This should usually be in writing and signed by all the
arbitrators. The award must contain reasons and state where the arbitration
took place. It must also be dated (this is important for calculating interest
on payments). Once the final award is made this ends proceedings.

• Additional Award – Usually once the final award is made, the tribunal has
no further authority. However, the parties can request an additional award
be made on an undecided issue still in dispute.

• Cost Award- A cost award specifically addresses the allocation of costs


associated with the arbitration proceedings, including arbitrators’ fees, legal
fees and other expenses.

CONCLUSION

Arbitral awards in India come in various forms, each serving a specific purpose within
the arbitration process. The types of arbitral awards are final awards, interim awards,
partial awards, consent awards, default awards, additional awards and costs
awards, each serving specific purposes in the arbitration process and ensuring
effective dispute resolution.
Understanding these different types of arbitral awards is important for parties
engaged in arbitration, as it enables them to navigate the process more effectively
and ensure that their disputes are resolved in a fair and efficient manner. The legal
framework provided by the Arbitration and Conciliation Act, 1996, supports this
diversity of awards, promoting a robust and reliable arbitration system in India.

You might also like