Lawstreet Journal

Calcutta HC explains whether ‘Interim Relief’ granted would constitute ‘Interim Award’ within the meaning of Arbitration and Conciliation Act: Lindsay International Private Limited v. IFGL Refractories Limited

Lawstreet Journal 3 Jul 2021 2:09am

Image courtesy: Lawstreet Journal Judiciary Calcutta HC explains whether ‘Interim Relief’ granted would constitute ‘Interim Award’ within the meaning of Arbitration and Conciliation Act: Lindsay International Private Limited v. IFGL Refractories Limited

The Calcutta High Court while hearing a petition that sought setting aside an alleged ‘interim award’ dated October 15th, 2020 and deciding whether an interim relief granted by an Arbitrator would constitute ‘an interim award, thereby allowing it to be set aside under Article 34 of the Arbitration and Conciliation Act, 1996, observed that the impugned order did not constitute an ‘Interim Award’ as defined under sections 29 and 31 of the Arbitration and Conciliation Act.

The Court in the present matter considered the meaning of the arbitration award as given in Section 29(1)(c) and 31(6). 

The court observed that section 31(6) of the Act, an 'interim award' is described as one which an Arbitrator has the option to give at 'any time' during the course of the arbitral proceedings before making the final award. Therefore, by definition an 'interim award' denotes a pronouncement in the interregnum similar to an interim order which proposes to settle a part of the claim pending final hearing of the action filed in the court. 

However, the Court added an important caveat by observing, "…an interim award cannot go beyond what the tribunal is empowered to grant by way of final relief on a complete consideration of the facts or upon trial. It is hence axiomatic that a decision which is intended as an interim measure, must be within the span and possibilities of the relief which can be granted by the Court/ Tribunal in the action filed." 

The Court in the present matter… Continue Reading...


Tagged: calcutta high court  
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