The arbitral award or arbitration award refers to an arbitration hearing decision made by an arbitration tribunal. An arbitral award is equal to a court judgement. An arbitral award may be non-monetary in nature where the claims of the entire claimant fail and there is no need for any party to pay any money.
An arbitration award may be given for payment of a sum of money, judgement of any matter to be decided in the arbitration proceedings, substantive fulfillment of a contract and ratification, setting aside or cancelling an act or other document.
The arbitral award shall be defined as arbitral tribunals judgement on the nature of dispute referred to it and shall include temporary, interlocutory or partial arbitral award. The arbitral tribunal can grant an interim arbitral award on a matter at any time during the proceedings. The interim award will be treated as the same as the final arbitral award of arbitration. A party may ask to make an additional arbitral award in respect of the claims raised in the arbitral proceedings but wasn’t stated in the interim arbitral award within 30 days of receipt of the arbitral award.
An arbitral award can be characterized into:
- Domestic award are those awards which are the outcomes of domestic arbitration. It is confined to the territory of India; the parties should be citizen of India or must be of Indian origin. Domestic award is governed by part 1 of Arbitration and conciliation act, 1996. A domestic award is an award granted in accordance to section 2 to 43 of the act.
- Foreign award is the outcome of the foreign arbitration. If the parties choose a foreign arbitration institution or agree to an ad Hoc arbitration overseas, the award granted after such proceedings shall be referred to as foreign award. Part 2 of the arbitration and conciliation act, 1996 deals with international arbitration or foreign arbitration. Section 44 of the act defines with foreign award.
In Sirajuddin v. Michael golodetz, the Calcutta high court ruled out that the necessary conditions for an arbitration to be referred to as foreign arbitration or the essential elements of foreign arbitration where the award could also be referred to as foreign arbitration award. The important points are:
- Arbitration should have been held in a foreign country
- By a foreign arbitrator
- Arbitration should have been done by applying foreign laws.
- One of the parties should be of foreign nationals
Essential elements of arbitral award:
- Should be in written form
- Signed by arbitrator
- Shall contain the reason for the passing of award
- Date and place at which the arbitration took place
Enforcement of arbitral award:
The regulation and orders of cases are regulated by Civil Procedure code, 1908 while the arbitral award procedure in India is governed mainly by the arbitration & conciliation act, 1996 and the CPC
- Enforcement of domestic award: A recipient of arbitral award has to wait for 90 days after receiving the award till compliance and execution. The award may be questioned during the transitional period under section 34 of the act. When the above time expires if a court considers the award enforceable at the execution point the authenticity of award can’t be questioned any further. Before the recent law on arbitration and conciliation a petition to set aside an award could equate to a stay in the award execution proceedings. Nevertheless, a party opposing the award would have to transfer a separate application to demand a stay on an award execution according to the amendment act
- Enforcement of foreign award: India is a signatory to Geneva convention on the execution of foreign arbitral award, 1927 and convention on the recognition and enforcement of foreign arbitral awards, 1958