NAME: MADEM ADITHYA YADAV

ENROLLMENT NO: 21FLICHH010093

SUBJECT: ALTERNATIVE DISPUTE RESOLUTION

TOPIC: COMPARATIVE STUDY OF SECTION 9 & 17 OF ARBITRATION AND

CONCILIATION ACT 1996.

COURSE: BBA.LLB

SECTION: A

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 TABLE OF CONTENTS

Introduction 3

Difference Between Section 9 & Section 17 4-5

Practical Application of Section 9 & Section 17 6

Case Laws 7

Conclusion 8

References 9

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 :INTRODUCTION:

The Arbitration and Conciliation Act, 1996, is a pivotal piece of legislation in

India that governs the resolution of disputes through arbitration and
conciliation. Arbitration is an alternative method of dispute resolution, where
parties choose to resolve their disputes outside of the traditional court system,
usually through a neutral third party, known as an arbitrator. Conciliation is
a related process that involves the assistance of a conciliator to facilitate
negotiations between the parties.

The Act was enacted to provide a robust and efficient framework for
arbitration and conciliation, aligning with international best practices and
promoting India as an arbitration-friendly jurisdiction. It was amended in
2015 to further enhance its effectiveness and clarity.

The Act is divided into several sections, each dealing with different aspects of
the arbitration and conciliation process. Two crucial sections within the Act
are Section 9 and Section 17, which deal with interim measures by courts
and arbitral tribunals, respectively, to preserve the rights and interests of
parties during the arbitration proceedings.

This comparative study aims to shed light on the distinctions between Section
9 and Section 17 of the Arbitration and Conciliation Act, 1996. By
understanding the differences and similarities between these provisions,
stakeholders in arbitration proceedings, including parties, legal practitioners,
and arbitrators, can make informed decisions about seeking interim relief to
safeguard their interests.

In the following sections, we will delve deeper into the specific provisions of
Section 9 and Section 17, discussing their purposes, key features, and how
they function within the broader framework of arbitration in India.

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SECTION 9:
Section 9 of the Arbitration and Conciliation Act, 1996, is a crucial provision
that addresses the power of courts to grant interim measures in support of
arbitration proceedings. It empowers the court to take necessary steps to
preserve the subject matter of the dispute and prevent a party from taking
unilateral actions that could prejudice the arbitral process.
1. Interim Measures:

• Section 9 allows a party to approach the court for interim relief,

which may include injunctions or the appointment of a receiver,
to secure the subject matter of the dispute until the conclusion
of the arbitration process.

2. Before or During Arbitration:

• An application under Section 9 can be made either before the

commencement of arbitration proceedings or during the course
of the arbitration.

3. Court's Discretion:

• The court has the discretion to grant or refuse interim relief based
on the circumstances of the case. It may also impose conditions
while granting the relief.

4. No Preclusion by Agreement:

• The power of the court under Section 9 is not affected by any

agreement between the parties that might limit or exclude the
court's jurisdiction to grant interim measures.

5. Enforceability:

• An order issued by the court under Section 9 is enforceable in the

same manner as an order of the court. Non-compliance with such
an order may lead to contempt of court proceedings.

6. Judicial Authority:

• Section 9 applications are decided by the court, which exercises

its judicial discretion in granting or denying interim relief.

The primary objective of Section 9 is to provide a mechanism for parties

involved in arbitration to seek urgent relief from the court to preserve the
status quo or prevent actions by the opposing party that could hinder or
frustrate the arbitration process. This section ensures that the arbitral
proceedings can be conducted effectively and that the eventual award can be
enforced without impediments.

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SECTION 17:
Section 17 of the Arbitration and Conciliation Act, 1996, addresses the power
of arbitral tribunals to grant interim measures during the course of arbitration
proceedings. This section empowers the arbitral tribunal to take necessary
steps to protect the interests of the parties involved in the arbitration.
1. Interim Measures by Arbitral Tribunal:
• Section 17 allows the arbitral tribunal to order interim measures
to protect the subject matter of the dispute, preserve evidence, or
prevent actions that could jeopardize the effectiveness of the final
award.
2. Scope of Interim Measures:
• The tribunal's authority under Section 17 is broad, allowing it to
issue various types of interim measures necessary to maintain
the integrity of the arbitration process.
3. Timing of Application:
• Parties can request interim measures under Section 17 only after
the arbitral tribunal has been constituted. This means that the
tribunal must be formed before parties can seek interim relief.
4. Enforceability:
• An order issued by the arbitral tribunal under Section 17 is
enforceable in the same manner as a court order. Failure to
comply with such an order can result in contempt of court
proceedings.
5. Autonomous Decision-Making:
• The arbitral tribunal exercises its authority autonomously when
granting interim measures. The decision of the tribunal in this
regard is usually final and binding.

The primary objective of Section 17 is to empower the arbitral tribunal to issue

interim measures that are necessary to safeguard the interests of the parties
involved in the arbitration process. This provision ensures that parties do not
suffer irreparable harm or face undue prejudice while awaiting the final
resolution of their dispute.

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Practical Application Of Section 17:

Parties often utilize Section 17 in situations where immediate action is

required to prevent a party from taking actions that could potentially harm
the arbitration process or the rights and interests of the other party.

In summary, Section 17 is a crucial provision that complements the

arbitration process by allowing the arbitral tribunal to grant interim relief
when necessary. This ensures the effectiveness and integrity of the arbitration
proceedings, ultimately leading to a fair and just resolution of the underlying
dispute.

Practical Application of Section 9:

The practical application of Section 9 of the Arbitration and Conciliation Act,

1996, involves situations where a party seeks urgent interim relief from a
court in support of ongoing or impending arbitration proceedings.

It's important to note that each case is unique, and the application of Section
9 will depend on the specific facts and circumstances. The court will consider
the merits of the application and exercise its discretion in granting or denying
interim relief. Additionally, any order issued under Section 9 is enforceable,
and failure to comply may lead to contempt of court proceedings.

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CASE LAWS RELATED TO SECTION 9:

1. Fiza Developers and Inter-trade Pvt. Ltd. vs. AMCI (India) Pvt. Ltd.
(2012) SCC OnLine Del 648:

• The Delhi High Court clarified that Section 9 can be invoked even
before the notice of arbitration is served, as long as the dispute is
in existence and arbitration is contemplated.

2. N. Radhakrishnan vs. Maestro Engineers (2010) 1 SCC 72:

• The Supreme Court of India held that the power of the court under
Section 9 is discretionary and that it can impose conditions while
granting interim relief. It also emphasized that Section 9 is not a
substitute for the actual arbitration proceedings.

• These cases provide important judicial interpretations of Section

9 and demonstrate how courts have applied this provision in
various contexts.

CASE LAWS RELATED TO SECTION 17:

1. M. R. Engineers & Contractors Pvt. Ltd. vs. Som Datt Builders Ltd.
(2009) 7 SCC 696:

• In this case, the Supreme Court held that an arbitral tribunal has
the authority to pass orders for interim measures, provided the
parties agree or do not object to it. The court emphasized that the
tribunal's power to grant interim relief is not limited to situations
where parties have not yet approached a court.

2. Cipla Ltd. vs. Bayer Corporation (2010) 10 SCC 1:

• The Supreme Court held that the power of the arbitral tribunal
under Section 17 is not only to order interim measures for the
purpose of preserving the subject matter of the dispute, but also
to ensure that the award, when passed, is capable of being
enforced.

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 :CONCLUSION:

Section 9 empowers the courts to grant interim measures to parties involved

in arbitration, either before or during the proceedings. This provision is
crucial in ensuring that the subject matter of the dispute is preserved, and
unilateral actions that could prejudice the arbitral process are prevented. The
court's discretion, enforceability of orders, and its ability to act even in cases
where parties have agreed otherwise make Section 9 a powerful tool for parties
seeking timely relief.

On the other hand, Section 17 confers authority upon the arbitral tribunal to
issue interim measures during the course of arbitration proceedings. This
includes measures to protect the subject matter, preserve evidence, and
prevent actions that could undermine the effectiveness of the final award. The
tribunal's power to decide on its own jurisdiction (Kompetenz-Kompetenz) is
also crucial in ensuring a seamless and independent arbitration process.

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REFERENCES:

Books:

• Alternative Dispute Resolution

• ADR Bare Act 1996

Websites:

• www.Indian Kanoon.com
• www.ipleaders.in