Emergency Arbitration Awards In An India-seated Arbitration Are Enforceable In India.

Order dated: 6 August 2021.
 

Summary:
 

The main issue before the SC was whether the award of an emergency arbitrator is recognized under the (Indian) Arbitration and Conciliation Act, 1996 (“Arbitration Act”) and whether it is enforceable under Indian law. SC ruled that party autonomy is the guiding spirit in arbitration law, and if parties agree to institutional arbitration which provides for emergency arbitration, then the parties are bound by the emergency arbitrator’s award. SC noted that nothing prohibits contracting parties from agreeing to a provision providing for an award being made by an emergency arbitrator, and on the contrary, the Arbitration Act endorses the parties to choose governing institutional rules.
 

SC explained that the definition of ‘arbitration’ under the Arbitration Act means any arbitration, whether or not administered by a permanent arbitral institution which makes it clear that even interim orders that are passed by emergency arbitrators under the rules of a permanent arbitral institution would be included under the definition of arbitration. SC further delved into provisions of the Arbitration Act which provides for interim reliefs by the arbitral tribunal “during the arbitral proceedings.” SC held the expression “during the arbitral proceedings” would include emergency arbitration proceedings, as such proceedings only commence after receipt of notice of arbitration and therefore, an emergency arbitrator’s award, if provided for under institutional rules, would be covered by the Arbitration Act.
 

SC also noted that the order for enforcement of such emergency award would be final and non-appealable. However, it should be noted that the observations of the SC in the present matter were with regards to an India-seated arbitration. For more information about the SC’s order, please read our article available here.
 

al@acuitylaw.co.in