Arbitral Award On The Issue Of Limitation Is An 'Interim Award': SC Suggests Amending S.34 Of Arbitration Act To Avoid Piecemeal Challenges [Read Judgment]
7 years, 2 months ago

Arbitral Award On The Issue Of Limitation Is An 'Interim Award': SC Suggests Amending S.34 Of Arbitration Act To Avoid Piecemeal Challenges [Read Judgment]

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Piecemeal challenges like piecemeal awards lead to unnecessary delay and additional expense, the bench said suggesting an amendment in Section 34 of the ActThe Supreme Court, in Indian Farmers Fertilizer Co-Operative Limited v. Bhadra Products, has held that an award delivered by an arbitrator, which decides the issue of limitation, is an interim award, that can be challenged separately. Piecemeal challenges like piecemeal awards lead to unnecessary delay and additional expense, the bench said suggesting an amendment in Section 34 of the Act The Supreme Court, in Indian Farmers Fertilizer Co-Operative Limited v. Bhadra Products, has held that an award delivered by an arbitrator, which decides the issue of limitation, is an interim award, that can be challenged separately and independently under Section 34 of the Arbitration and Conciliation Act, 1996. Referring to Section 31, the bench observed: “A reading of the said sub-section makes it clear that the jurisdiction to make an interim arbitral award is left to the good sense of the arbitral tribunal, and that it extends to “any matter” with respect to which it may make a final arbitral award. the issue of limitation finally, the award dated 23rd July, 2015 is an “interim award” within the meaning of Section 2 of the Act and being subsumed within the expression “arbitral award” could, therefore, have been challenged under Section 34 of the Act.” The bench also said such an award, does not relate to the arbitral tribunal’s own jurisdiction under Section 16, and it does not have to follow the drill of Section 16 and of the Act.

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