3. 3
CHAPTER VIII
• Sec 35 – An Arbitral Award is final and binding on the
parties and persons claiming under them if the time for any
appeal and application to be made to the Court u/s 34 for
setting aside of the award has expired.
• Sec 36 – (Amended by 2015 Act) Subject to Sec 35, an
award is enforceable under the provisions of CPC 1908 just
like a decree of a Court.
• -- Any application u/s 34 for setting aside of the award does not by itself
make any award unenforceable, unless Court grants a stay on its
enforcement. A separate application for stay must be made.
4. 4
CHAPTER VIII
• Sec 36
• -- An application for stay if made, Court may grant it, but impose
conditions (For Eg. Ask for some security to be put up) as it deems fit
giving reasons for the same.
• -- In case of a award for payment of money, consider the CPC 1908 for
grant of stay of money decree.
5. 5
CHAPTER X -- MISCELLLANEOUS
• Sec 38 – Powers of Arbitrator to order Deposits for Costs
• -- Can ask parties to deposit security for estimated fees and
costs for claim and/or counter claim in equal shares.
• Consequences for not obeying such Orders:
• Suspend or Terminate the Arbitration
• Strike off the Claim or Counter Claim as case may be.
• Obliged to prepare proper accounts and return surplus
fees.
6. 6
CHAPTER X -- MISCELLLANEOUS
• Sec 39 – Arbitrator’s Right of lien* on Award and
deposits.
• -- Right of Lien on Award for Unpaid Costs.
• -- If any party complains to Court on Tribunal’s lien, the
Court will ask that reasonable sums be deposited into the
Court and ask Tribunal to release the award to the parties.
Court can also decide on the amount of costs unless pre-
agreed in contract and any surplus sums would be returned
to parties.
• *** LIEN ONLY ON AWARD!!!
7. 7
CHAPTER X -- MISCELLLANEOUS
• Sec 43 – Application of Limitation Act.
[Discussed earlier along with Sec 21.]
8. 8
CHAPTER X -- MISCELLLANEOUS
• Sec 43 (Limitation) is linked with Sec 21 which makes
reference to the Limitation Act, 1963.
• Sec. 43(1) -- Limitation Act, 1963 applies to arbitration
proceedings the same way it applies to proceedings.
• Sec 43(2) provides that for purposes of calculating
limitation period, the dates underlined above would be
used as commencement date.
9. 9
CHAPTER X -- MISCELLLANEOUS
• Sec 43(3)
• Contract states that arbitration for a dispute must commence
within a deadline from the date of dispute, (For Eg. 1 year) but
the claimant does not commence arbitration within the
limitation time.
• Respondent, claims a time bar. Claimant can apply to the Court.
• Court will evaluate the circumstances of the delay and in interest
of justice or where it finds that the claimant would suffer undue
hardship if the claim is barred, may allow extension of the
limitation irrespective of the time bar clause in the contract.
10. 10
CHAPTER X -- MISCELLLANEOUS
• Sec 43(4) –
• Where the Court orders that an arbitral award be set
aside, the whole period of duration of the arbitration
until the date of the Court Order shall be excluded in
computing the time prescribed by the Limitation Act,
1963 (36 of 1963), for the commencement of the
proceedings (including arbitration) with respect to the
dispute so submitted. --
• This means that, in case parties must refer the dispute to a re-arbitration,
none of the parties can raise a defence of Limitation period as the time
elapsed is deemed as voided.
