What is Arbitration Award, Arbitral Award?

What is Arbitration Award, Arbitral Award?

An Arbitration Award, also known as an Arbitral Award, is a decision made by an arbitrator or a panel of arbitrators in a dispute resolution process known as arbitration.

Arbitration is an alternative method of resolving disputes outside of traditional court litigation. In arbitration, the parties involved in a dispute agree to submit their case to one or more impartial third parties, known as arbitrators, who then hear the arguments and evidence presented by both sides and make a decision to resolve the dispute. This decision is the arbitration award.

Arbitration awards are typically binding on the parties involved, meaning they must comply with the decision reached by the arbitrator(s). They can cover various types of disputes, including commercial, contractual, labor, and international disputes. Arbitration awards are often considered enforceable in courts, similar to court judgments, depending on the laws and regulations governing arbitration in the relevant jurisdiction.

What is Arbitration Award, Arbitral Award?

An arbitration award, also known as an arbitral award, is the final decision made by an arbitrator or arbitration panel in a dispute resolution process called arbitration. It’s similar to a judgment issued in a court of law but is delivered through a private and alternative dispute resolution mechanism.

Here are some key characteristics of an arbitration award:

• Binding Decision: Once issued, the award is generally binding on both parties involved in the arbitration, meaning they are legally obligated to comply with its terms.
• Final and Enforceable: Similar to a court judgment, an arbitration award is typically final and enforceable by a court, allowing the prevailing party to seek legal action if the other party fails to comply.
• Content: The award’s content can vary depending on the specific dispute but can include:
  • Ordering a party to pay monetary damages to the other party.
  • Instructing a party to take specific actions or refrain from certain actions.
  • Deciding on other forms of remedies like specific performance of a contract or canceling a document.
  • Dismissing all claims brought by one party against the other.

It’s important to note that arbitration awards can be challenged under certain circumstances, but generally, they serve as a final and binding resolution to a dispute outside the court system.

An arbitration award is a decision made by an arbitrator or a panel of arbitrators in a dispute resolution process known as arbitration. Here’s a breakdown of your questions:

1. Meaning of Award of an Arbitrator: An award of an arbitrator refers to the decision rendered by the arbitrator or arbitration panel at the conclusion of an arbitration proceeding. It is the resolution to the dispute brought before them.
2. Content of Arbitration Award: The arbitration award typically includes findings of fact, legal reasoning, and a final decision or remedy regarding the dispute between the parties involved.
3. Objectives of Arbitral Award: The primary objectives of an arbitral award are to provide a fair and impartial resolution to the dispute, to enforce the parties’ agreement to resolve their dispute through arbitration, and to provide a final and binding decision that brings closure to the matter.
4. Limit of Arbitration Award: The limit of an arbitration award depends on the terms agreed upon by the parties involved and the jurisdiction in which the arbitration takes place. Generally, an arbitration award cannot exceed the scope of the arbitration agreement or the applicable law.
5. Arbitration Award Procedure: The arbitration award procedure involves submission of evidence, arguments, and presentations by the parties to the arbitrator(s), followed by a deliberative process by the arbitrator(s) to reach a decision. The award is then issued to the parties.
6. Importance of Arbitration Award: The arbitration award is important because it provides a final and binding resolution to the dispute, which the parties have agreed to abide by as per their arbitration agreement.
7. After Arbitration Award: After the arbitration award is issued, the parties are legally obligated to comply with its terms. They may also seek enforcement of the award through the appropriate legal mechanisms if necessary.
8. Advantages of Arbitration Award: Some advantages of arbitration awards include confidentiality, flexibility, and efficiency in resolving disputes compared to traditional litigation.
9. Legally Binding Nature: Yes, in most cases, arbitration awards are legally binding on the parties involved as they have agreed to resolve their disputes through arbitration and abide by the arbitrator’s decision.
10. Appealability of Arbitration Award: In many jurisdictions, arbitration awards can be challenged or appealed under limited circumstances, such as misconduct by the arbitrator or procedural irregularities. However, the grounds for challenging an arbitration award are typically more limited than those for appealing a court judgment.
11. Appearance of Arbitration Award: An arbitration award usually consists of a written document signed by the arbitrator(s), detailing the decision reached, the reasoning behind it, and any remedies or orders issued.
12. Challenging an Arbitration Award: Yes, in certain situations, arbitration awards can be challenged in court, typically on limited grounds as specified by the applicable arbitration law or the arbitration agreement.
13. Decree Nature: An arbitration award can have the force of a decree if it is recognized and enforced by a court. However, it is not automatically considered a decree unless a court confirms it as such.
14. Requirements for an Arbitration Award: An arbitration award must be reasoned, meaning it should provide the rationale behind the decision, and it should be final and binding on the parties involved.
15. Duration of Arbitration Award: The time it takes to obtain an arbitration award varies depending on factors such as the complexity of the dispute, the number of parties involved, and the arbitration process itself. It can range from a few weeks to several months or longer.
16. After Arbitration Award in India: In India, after an arbitration award is issued, parties can apply to the appropriate court for enforcement or challenge of the award, as per the provisions of the Arbitration and Conciliation Act, 1996.
17. Difference Between Arbitration Agreement and Arbitral Award: An arbitration agreement is a contract between parties agreeing to resolve their disputes through arbitration, while an arbitral award is the decision rendered by the arbitrator(s) at the conclusion of the arbitration proceedings, resolving the specific dispute between the parties.

These points should provide a comprehensive overview of arbitration awards and their significance in dispute resolution processes.

What is meant by award of an arbitrator?

• The “Award of an arbitrator” is the final, written decision issued by an arbitrator (or a panel of arbitrators) after a formal arbitration hearing. It determines the outcome of the dispute between the involved parties.

What is the arbitration award issued?

• An arbitration award resolves the specific conflict submitted to the arbitrator. It can include:
  • Monetary compensation: Ordering one party to pay damages to the other.
  • Injunctive relief: Ordering a party to do something or stop doing something (like fulfilling a contract).
  • Specific performance: Requiring a party to abide by a contract’s terms.
  • Declaratory judgment: Clarifying the legal rights or relationships between the parties.

What are the objectives of an arbitral award?

• Finality: To provide a decisive resolution to the dispute.
• Fairness: To ensure that the process has been just, and the decision is equitable.
• Enforceability: The award should be legally binding and enforceable by a court.

What is the limit of arbitration award?

• Scope of the Agreement: The arbitrator can only rule on matters agreed to be arbitrated by the parties in the arbitration agreement.
• Applicable law: The arbitrator must follow the laws relevant to the dispute.
• Public Policy: The award cannot violate fundamental public policy principles (such as being illegal or grossly unfair).

What is the arbitration award procedure?

While the specifics can vary, here’s a general outline:

1. Notice of Arbitration: One party files a demand for arbitration.
2. Selection of Arbitrator(s): Parties agree on an arbitrator or a panel of arbitrators.
3. Hearing: Each side presents evidence and arguments.
4. Deliberation: Arbitrator(s) evaluate the submissions.
5. Issuing of the Award: The arbitrator issues the written award with the decision and reasoning.

Why is the arbitration award important?

• Alternative to court: Offers a potentially faster and more cost-effective way to resolve disputes than traditional litigation.
• Expertise: The selected arbitrator often has specialized knowledge in the relevant subject matter.
• Privacy: The process is usually confidential.

What happens after arbitration award?

• Confirmation: Often the winning party will seek a court judgment to confirm the award, making it officially enforceable.
• Enforcement: If the losing party doesn’t comply, the winning party can take legal action to enforce the award, like seizing assets.
• Appeal: Depending on the jurisdiction, there may be limited grounds to appeal the award, primarily based on procedural irregularities or misconduct.

Is arbitration award legally binding?

• Yes, typically arbitration awards are legally binding upon the parties involved.

Is arbitration award appealable?

• Appeals are limited. They usually are allowed only in cases of:
  • Arbitrator bias or misconduct
  • The award exceeding the scope of the arbitration agreement
  • Serious procedural irregularities or due process violations

What does an arbitration award look like?

• There’s no strict format. Generally, it includes:
  • Parties’ names and contact information
  • Arbitrator’s name
  • Summary of the dispute & claims
  • Evidence considered
  • Arbitrator’s reasoning / analysis
  • Final decision (the award itself)
  • Signatures and date

Can arbitration award be challenged?

• Yes, but on narrow grounds, as mentioned earlier

Is arbitration award a decree?

• No. But it can become enforceable like a court decree when confirmed by a court.

What must an arbitration award be?

• Final: Fully resolve the dispute.
• Written: Clear, well-reasoned document.
• Legal: In accordance with applicable laws and the arbitration agreement.

How long does arbitration award take?

• Timeline varies, but usually several months to a year. Complex disputes may take longer.

What is the difference between an arbitration agreement and an arbitral award?

• Arbitration Agreement: A contract where parties agree in advance to submit future disputes to arbitration.
• Arbitral Award: The arbitrator’s decision after an arbitration hearing has been conducted.

What is Arbitration Award, Arbitral Award?

What is Arbitral Award, Arbitration Award?

Section 31 Form and contents of arbitral award. Arbitration and Conciliation Act, 1996

Section 31 Form and contents of arbitral award. Arbitration and Conciliation Act, 1996

Section 31.   Form and contents of arbitral award. (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 reasons 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, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made. 1[(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment. Explanation.—The expression “current rate of interest” shall have the same meaning as assigned to it under clause (b) of section 2 of the Interest Act, 1978 (14 of 1978).] 2[(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.] Explanation.—For the purpose of clause (a), “costs” means reasonable 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. 1. Subs. by Act 3 of 2016, s. 16, for clause (b) (w.e.f. 23-10-2015). 2. Subs. by s. 16, ibid., for sub-section (8) (w.e.f. 23-10-2015).

Section 31 Form and contents of arbitral award. Arbitration and Conciliation Act, 1996