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Section 31 of Arbitration and Conciliation Act, 1996
Section 31 of Arbitration and Conciliation Act, 1996 deals with Form and contents of arbitral award.
From the Act
(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 masons 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, an the whole or any pan of the money, for the whole or any pad 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 a which the costs shall be paid.
Explanation,-For the purpose of clause (a), "costs" means responsible 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.
- It is mandatory for an arbitrator or arbitral tribunal to provide the reasons on which the award is based.
- The exception permitted for not giving reasons on the award are if the parties agree that no reasons have to be
given, or if the award is an award on agreed terms under Section 30.
Related Cases / Recent Cases / Case Laws
- Benarsi Krishna Committee and Others Vs Karmyogi Shelters Pvt Ltd, Special Leave Petition (Civil) No: 23860 of 2010; Supreme Court Judgement delivered on September 21, 2012
Related Sections from the Act
- Section 28: Rules applicable to substance of dispute
- Section 29: Decision making by panel of arbitrators
- Section 30: Settlement
- Section 32: Termination of proceedings
- Section 33: Correction and interpretation of award; additional award
- Arbitration Act, 1940
- United Nations Commission on International Trade Law
- Indian Contract Act, 1872
- Limited Liability Partnership Act, 2008
- Companies Act, 1956
- Code of Civil Procedure, 1908
- Code of Criminal Procedure, 1973