Arbitration
& Conciliation Act, 1996
CHAPTER VI: MAKING
OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS
28. Rules applicable to substance of dispute
(1)
Where the place of arbitration is situate in India-
(a)
in an arbitration other than an international commercial arbitration,
the arbitral tribunal shall decide the dispute submitted to arbitration
in accordance with the substantive law for the time being in force in
India;
(b)
in international commercial arbitration,-
(i)
the arbitral tribunal shall decide the dispute in accordance with the
rules of law designated by the parties as applicable to the substance
of the dispute;
(ii)
any designation by the parties of the law or legal system of a given country
shall be construed, unless otherwise expressed, as directly referring
to the substantive law of that country and not to its conflict of laws
rules;
(iii)
failing any designation of the law under sub-clause (ii) by the parties,
the arbitral tribunal shall apply the rules of law it considers to be
appropriate given all the circumstances surrounding the dispute.
(2)
The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur
only if the parties have expressly authorised it to do so.
(3)
In all cases, the arbitral tribunal shall decide in accordance with the
terms of the contract and shall take into account the usages of the trade
applicable to the transaction.
29. Decision making by panel of arbitrators
(1)
Unless otherwise agreed by the parties, in arbitral proceedings with more
than one arbitrator, any decision of the arbitral tribunal shall be made
by a majority of all its members.
(2)
Notwithstanding sub-section (1), if authorised by the parties or all the
members of the arbitral tribunal, questions of procedure may be decided
by the presiding arbitrator.
30. Settlement
(1)
It is not incompatible with an arbitration agreement for an arbitral tribunal
to encourage settlement of the dispute and, with the agreement of the
parties, the arbitral tribunal may use mediation, conciliation or other
procedures at any time during the arbitral proceedings to encourage settlement.
(2)
If, during arbitral proceedings, the parties settle the dispute, the arbitral
tribunal shall terminate the proceedings and, if requested by the parties
and not objected to by the arbitral tribunal, record the settlement in
the form of an arbitral award on agreed terms.
(3)
An arbitral award on agreed terms shall be made in accordance with section
31 and shall state that it is an arbitral award.
(4)
An arbitral award on agreed terms shall have the same status and effect
as any other arbitral award on the substance of the dispute.
31. Form and contents of arbitral award
(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 to 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 in 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.
32 Termination of proceedings
(1)
The arbitral proceedings shall be terminated by the final arbitral award
or by an order of the arbitral tribunal under sub-section (2).
(2)
The arbitral tribunal shall issue an order for the termination of the
arbitral proceedings where,-
(a)
the claimant withdraws his claim, unless the respondent objects to the
order and the arbitral tribunal recognises a legitimate interest on his
part in obtaining a final settlement of the dispute,
(b)
the parties agree on the termination of the proceedings, or
(c)
the arbitral tribunal finds that the continuation of the proceedings has
for any other reason become unnecessary or impossible.
(3)
Subject to section 33 and sub-section (4) of section 34, the mandate of
the arbitral tribunal shall terminate with the termination of the arbitral
proceedings.
33. Correction and interpretation of award; additional award
(1)
Within thirty days from the receipt of the arbitral award, unless another
period of time has been agreed upon by the parties,-
(a)
a party, with notice to the other party, may request the arbitral tribunal
to correct any computation errors, any clerical or typographical errors
or any other errors of a similar nature occurring in the award;
(b)
if so agreed by the parties, a party, with notice to the other party,
may request the arbitral tribunal to give an interpretation of a specific
point or part of the award.
(2)
If the arbitral tribunal considers the request made under sub-section
(1) to be justified, it shall make the correction or give the interpretation
within thirty days from the receipt of the request and the interpretation
shall form part of the arbitral award.
(3)
The arbitral tribunal may correct any error of the type referred to in
clause (a) of sub-section (1), on its own initiative, within thirty days
from the date of the arbitral award.
(4)
Unless otherwise agreed by the parties, a party with notice to the other
party may request, within thirty days from the receipt of the arbitral
award, the arbitral tribunal to make an additional arbitral award as to
claims presented in the arbitral proceedings but omitted from the arbitral
award.
(5)
If the arbitral tribunal considers the request made under sub-section
(4) to be justified, it shall make the additional arbitral award within
sixty days from the receipt of such request.
(6)
The arbitral tribunal may extend, if necessary, the period of time within
which it shall make a correction, give an interpretation or make an additional
arbitral award under sub-section (2) or sub-section (5).
(7)
Section 31shall apply to a correction or interpretation of the arbitral
award or to an additional arbitral award made under this section.
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