ASSIGNMENT

TOPIC NAME: Arbitral Awards

SUBJECT- Alternative Dispute Resolution System

ASSIGNMENT SUBMITTED TO
FACULTY OF LAW, UNIVERSITY OF LUCKNOW

B.A.LL.B. (Hons.)-SEM VII (SECTION B)

Under Guidance of: Submitted By:

DR SHWETA SAUMYA PATEL
SRIVASTAVA ROLL NO. 2110013015128
FACULTY OF LAW
UNIVERSITY OF LUCKNOW

FACULTY OF LAW
UNIVERSITY OF LUCKNOW
LUCKNOW, U.P.
2024-25
 ACKNOWLEDGEMENT

I am overwhelmed in all humbleness and gratefulness to acknowledge my depth to all those

who have helped me to put these ideas, well above the level of simplicity and into something
concrete. I would like to express my special thanks of gratitude to my teacher Dr Shweta
Srivastava, who gave me the golden opportunity to do this wonderful assignment on the topic
“Arbitral Awards”, which also helped me in doing a lot of Research and I came to know about
so many new things. I am really thankful to them. Any attempt at any level cannot be
satisfactorily completed without the support and guidance of my parents and friends. I would
like to thank my parents who helped me a lot in gathering different information, collecting data
and guiding me from time to time in making this project, despite of their busy schedules, they
gave me different ideas in making this project unique.

Saumya Patel
2110013015128
Table of Contents
1. Introduction
2. Definition of Arbitral Award
3. Types of Arbitral Awards
4. Essentials of a Valid Arbitral Award
5. Legal Framework Governing Arbitral Awards in India
o Arbitration and Conciliation Act, 1996
o Key Provisions under the Act
6. Recognition and Enforcement of Arbitral Awards
o Domestic Awards
o Foreign Awards
o New York Convention and Geneva Convention
7. Grounds for Challenging Arbitral Awards
8. Conclusion
9. Bibliography
 Introduction
Arbitration has emerged as a crucial alternative dispute resolution (ADR) mechanism, allowing
parties to resolve disputes outside the traditional court system. As global commerce and trade
have expanded, the need for quicker, more cost-effective methods of settling disputes has
grown, and arbitration offers a practical solution for both civil and commercial conflicts.
Arbitration is particularly favoured in international business due to its flexibility, neutrality,
and the confidentiality it offers to the parties involved.
At the conclusion of the arbitration process, the arbitrator or arbitration tribunal renders a
decision, referred to as an "Arbitral Award." This award is a formal judgment on the dispute
and carries the same legal weight as a decree passed by a civil court. Once rendered, it becomes
binding on the parties and is enforceable in a court of law. In many jurisdictions, including
India, an arbitral award can be enforced just like a civil court order, underlining its importance
in the legal framework.
The Arbitration and Conciliation Act, 1996, governs arbitration proceedings and awards in
India. This legislation is based on the UNCITRAL Model Law on International Commercial
Arbitration, making it aligned with international arbitration practices. The Act outlines
procedures for both domestic and international arbitration, offering a detailed mechanism for
the recognition and enforcement of arbitral awards.
An arbitral award must meet specific requirements to be valid and enforceable. It should be in
writing, signed by the arbitrators, and state the reasons for the decision, unless otherwise agreed
by the parties. It must also include the date and place of arbitration. Under the Act, domestic
awards and foreign awards, particularly those rendered under the New York Convention or the
Geneva Convention, can be enforced in Indian courts. This legal framework ensures that
arbitral awards are final and binding, contributing to the efficiency of arbitration as a preferred
mode of dispute resolution.
Definition of Arbitral Award
An arbitral award is the formal decision made by an arbitration tribunal that resolves the dispute
between the parties involved in an arbitration proceeding. It is equivalent to a court judgment
and holds binding authority. The award can address a variety of disputes, including those
arising from contracts, commercial agreements, investment matters, and even tortious claims,
making arbitration a versatile tool in both domestic and international contexts.
An arbitral award is not limited to final decisions; it can also include interim or partial awards
that resolve specific issues during the course of the arbitration, while the overall dispute is still
ongoing. Interim awards might relate to urgent matters, such as the preservation of assets or
the continuation of certain contractual obligations. Partial awards, on the other hand, might
decide particular aspects of the dispute without completely resolving all issues.
A valid arbitral award must be in writing, signed by the arbitrators, and provide reasons for the
decision unless the parties have agreed otherwise. It should also specify the date and place of
arbitration. Once rendered, the award is binding on the parties and can be enforced in a court
of law, ensuring that the arbitration process has legal finality and weight.

3. Types of Arbitral Awards

Arbitral awards come in various forms depending on the stage of the proceedings and the nature
of the dispute. These awards can range from final decisions that resolve the entire dispute to
interim decisions that address specific issues. Understanding the different types of arbitral
awards is essential for grasping the flexibility and functionality of arbitration as a dispute
resolution method.
a. Final Award
A final award is the most common type of arbitral award and marks the conclusion of the
arbitration process. It resolves all the issues submitted by the parties, covering all claims and
defences. The final award is binding and enforceable in the same manner as a court judgment.
It typically includes the tribunal's decision on the merits of the case, along with any applicable
remedies, such as compensation or performance obligations. Once a final award is issued, the
arbitration proceedings are officially closed, and the parties are expected to comply with the
terms of the award.
b. Interim or Partial Award
An interim or partial award is issued when the tribunal needs to decide specific matters before
addressing the entire dispute. For example, the tribunal may issue an interim award regarding
the preservation of assets or temporary relief measures, such as an injunction or security for
costs. A partial award may deal with a particular claim or issue within the dispute, leaving the
remaining issues to be addressed later in the proceedings. These awards are useful in complex
cases where the resolution of certain issues can facilitate a more efficient resolution of the
overall dispute.
c. Consent Award
A consent award is issued when the parties involved in the arbitration reach an agreement on
the dispute during the arbitration process. The tribunal, upon request, can formalize this
agreement into an arbitral award. Even though the award is based on the parties' mutual
agreement, it carries the same legal force as any other arbitral award, ensuring that the
settlement is legally binding and enforceable. Consent awards are often seen as a positive
outcome, as they reflect a collaborative resolution.
d. Default Award
A default award is issued when one of the parties fails to participate in the arbitration process
without valid reasons. In such cases, the tribunal may proceed with the arbitration and issue an
award based on the submissions and evidence provided by the participating party. However,
tribunals are generally cautious in issuing default awards to ensure fairness and due process.

4. Essentials of a Valid Arbitral Award

For an arbitral award to be considered valid and enforceable, it must adhere to specific essential
requirements that ensure its legitimacy and compliance with legal standards. Understanding
these essentials is critical for parties engaging in arbitration, as it affects the enforceability of
the award in courts.
a. Written Form
The first essential requirement is that the arbitral award must be documented in writing. This
written form serves as a formal record of the tribunal’s decision. Moreover, it must be signed
by all arbitrators involved in the decision-making process. This signature acts as a verification
of authenticity, indicating that all members of the tribunal agree with the content of the award.
b. Reasoning
Unless the parties have mutually agreed to waive this requirement, the award must include the
reasoning that supports the tribunal’s decision. Providing reasons for the award enhances
transparency and allows the parties to understand the basis of the tribunal's conclusions. It also
serves as an important element for any potential judicial review, as courts may need to assess
whether the tribunal acted within its authority and adhered to legal principles.
c. Date and Place
The award must clearly specify the date and place where the arbitration was conducted. This
information is essential as it helps establish the jurisdiction and context in which the arbitration
took place. It also provides a reference point for the timeline of the proceedings.
d. Finality
A valid arbitral award must resolve the dispute definitively, bringing closure to the issues
presented. While interim awards may address specific aspects of a dispute, the finality aspect
ensures that the parties know the outcome and can rely on the decision. This finality is crucial
for enforcing the award in a court of law, as it reinforces the principle that arbitration is intended
to provide a conclusive resolution to disputes.
5. Legal Framework Governing Arbitral Awards in India
The legal framework governing arbitral awards in India is primarily established under the
Arbitration and Conciliation Act, 1996. This Act was enacted to promote arbitration as an
effective method of resolving disputes, thereby reducing the burden on the judicial system.
The UNCITRAL Model Law on International Commercial Arbitration, reflecting
international best practices in arbitration.
5.1 Arbitration and Conciliation Act, 1996
The Arbitration and Conciliation Act, 1996, is divided into two main parts: Part I pertains to
domestic arbitration, while Part II deals with the enforcement of foreign arbitral awards. This
bifurcation allows the Act to cater to both national and international arbitration, providing a
comprehensive legal framework for resolving disputes arising in various contexts, including
commercial and contractual matters. The Act aims to ensure that arbitration proceedings are
conducted fairly and efficiently, with minimal court intervention, thereby upholding the parties'
autonomy in choosing arbitration as a dispute resolution mechanism.
5.2 Key Provisions under the Act
Several key provisions under the Act govern the nature, validity, and enforcement of arbitral
awards:
Section 31: Form and Contents of Arbitral Award
Section 31 of the Act specifies the essential elements that must be included in an arbitral award.
It mandates that the award must be in writing and signed by the arbitrators. Additionally, the
section outlines that the award should state the reasons upon which it is based unless the parties
have agreed otherwise. This provision ensures that the award is not only a formal declaration
of the tribunal's decision but also provides clarity and reasoning behind the conclusions
reached. It further necessitates that the award specifies the date and place of arbitration,
enhancing the transparency of the process.
Section 34: Challenging an Arbitral Award
Section 34 provides the grounds on which an arbitral award can be challenged in a court of law.
These grounds include incapacity of a party, invalid arbitration agreement, lack of proper
notice, and the award being in conflict with the public policy of India. This section is crucial
for maintaining the integrity of the arbitration process, allowing parties to seek judicial
intervention if they believe the arbitration has not adhered to legal standards or principles of
fairness.
Section 36: Enforcement of Arbitral Awards
Section 36 states that an arbitral award is enforceable as if it were a decree of a court, thereby
granting it the same legal status. This provision is significant as it underlines the enforceability
of arbitral awards, making it easier for parties to seek execution of the award in the event of
non-compliance. It reinforces the principle that arbitration is a binding and final process,
ensuring that the parties involved can rely on the outcome of the arbitration.
6. Recognition and Enforcement of Arbitral Awards
The recognition and enforcement of arbitral awards are essential components of the arbitration
process, ensuring that the decisions rendered by arbitrators are respected and upheld within the
legal framework. In India, arbitral awards can be categorized into two main types: domestic
awards and foreign awards.
6.1 Domestic Awards
Domestic awards refer to those rendered in arbitration proceedings that are conducted in India,
governed by Indian law. Under Section 36 of the Arbitration and Conciliation Act, 1996,
domestic awards are enforceable as if they were decrees issued by a civil court. This provision
allows parties to seek execution of the award in the same manner as they would for a court
judgment, thereby providing a straightforward mechanism for enforcement. The legal
framework ensures that once a domestic arbitral award is rendered, it is binding on the parties
involved, thereby promoting the efficacy of arbitration as a reliable dispute resolution method.
The parties can approach the appropriate civil court to enforce the award, ensuring that the
outcome of the arbitration process is upheld and complied with.
6.2 Foreign Awards
Foreign awards, on the other hand, are those rendered in arbitration proceedings conducted in
countries that are signatories to international conventions such as the New York Convention
on the Recognition and Enforcement of Foreign Arbitral Awards and the Geneva
Convention on the Execution of Foreign Arbitral Awards. The enforcement of foreign
awards in India is governed by Part II of the Arbitration and Conciliation Act, 1996. Under
this part, foreign awards are recognized and enforced, provided they meet the criteria laid out
in the applicable conventions and Indian law. To enforce a foreign award, the party seeking
enforcement must apply to the court, which will examine whether the award is in accordance
with the relevant international treaties and Indian public policy.

7. Grounds for Challenging Arbitral Awards

Challenging an arbitral award is a significant aspect of the arbitration process, ensuring that
parties have a means to contest decisions they perceive as unjust or invalid. Under Section 34
of the Arbitration and Conciliation Act, 1996, several grounds can lead to the annulment of
an arbitral award. Understanding these grounds is crucial for both practitioners and parties
involved in arbitration.
a. Incapacity of a Party
One of the primary grounds for challenging an arbitral award is if a party lacked the legal
capacity to enter into the arbitration agreement at the time of its formation. This incapacity
could arise from various factors, such as being a minor, being mentally incapacitated, or being
under legal disability. If it can be proven that a party did not have the capacity to consent to the
arbitration, the award may be set aside.
b. Invalid Arbitration Agreement
An award may also be contested if the arbitration agreement itself is found to be invalid under
the relevant laws. This invalidity could stem from issues such as the absence of a signed
agreement, unclear terms, or a lack of mutual consent between the parties. If the arbitration
agreement does not meet the necessary legal requirements, the subsequent award may be
declared void.
c. Lack of Proper Notice
Proper notice is a fundamental principle in legal proceedings, including arbitration. If the party
challenging the award was not adequately informed about the appointment of the arbitrator or
the arbitration proceedings, this could be a valid ground for contesting the award. Failure to
provide proper notice undermines the principles of fair hearing and due process, which are
essential in arbitration.
d. Exceeding Jurisdiction
An arbitral award may also be set aside if the tribunal exceeds its jurisdiction by addressing
issues not contemplated within the scope of the arbitration agreement. If the tribunal
adjudicates matters outside its defined authority, it risks rendering an award that is invalid. This
ground ensures that arbitrators adhere strictly to the terms of the agreement and do not overstep
their bounds.
e. Public Policy
The final ground for challenging an arbitral award pertains to conflicts with public policy. An
award may be set aside if it is found to be in violation of Indian public policy, which includes
instances of fraud, corruption, or matters that are contrary to fundamental legal principles. This
ground serves as a safeguard against awards that could lead to unjust outcomes or that
contravene societal norms and legal ethics.
 Conclusion
Arbitral awards serve a crucial function in the landscape of dispute resolution by offering an
effective alternative to traditional court proceedings. These awards carry the same legal weight
as court decrees, allowing parties to resolve their disputes outside the courtroom while ensuring
that the outcomes are binding and enforceable. The Arbitration and Conciliation Act, 1996
provides a robust legislative framework that facilitates the enforcement of arbitral awards,
thereby enhancing the efficiency and expediency of the arbitration process.
The Act establishes clear grounds for challenging arbitral awards, ensuring that the process
maintains fairness and integrity. This safeguard allows parties to contest awards under specific
conditions, thereby preventing unjust outcomes and upholding legal standards. At the same
time, the enforceability of arbitral awards solidifies arbitration as a reliable method for
resolving disputes, contributing to a more streamlined and less time-consuming dispute
resolution mechanism. The combination of a strong legislative framework, the ability to
challenge awards, and the enforceability of arbitral decisions positions arbitration as an
effective and favored approach to resolving civil and commercial disputes in India and globally
 Bibliography
1. Books
o G. R. (2020). Arbitration Law and Practice in India. New Delhi: LexisNexis.
o Mustill, M. J., & Boyd, S. (2001). The Law and Practice of Commercial
Arbitration in England. London: Butterworths.
2. Legislation
o Arbitration and Conciliation Act, 1996 (India). Retrieved from
https://legislative.gov.in/sites/default/files/A1996-26.pdf
3. Journal Articles
o Bhattacharyya, S. (2018). The role of arbitration in the resolution of disputes:
An analysis of the Arbitration and Conciliation Act, 1996. Indian Journal of
Arbitration Law, 7(2), 45-68.
o Rao, P. (2019). Understanding the enforcement of arbitral awards in India:
Challenges and reforms. Journal of International Arbitration, 36(4), 529-550.
4. Reports
o Ministry of Law and Justice, Government of India. (2020). Report on
Arbitration and Conciliation: Reforms and Recommendations. Retrieved from
https://www.legalaffairs.gov.in/
5. Websites
o UNCITRAL. (2020). UNCITRAL Model Law on International Commercial
Arbitration. Retrieved from https://uncitral.un.org/en/model-arbitration-law