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Sreshtha Malik   17 June 2021

Emergency Arbitral Awards

Emergency Arbitral Awards
- How far is it acceptable or accepted in India?

- If not then what are the possible changes that one should recommend for acceptance of such awards?


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 1 Replies

Nirali Nayak   18 June 2021

Hello mam, greetings of the day.
As per your query, I have explained the emergency arbitral award in details. Emergency Arbitration is an arbitration pursuant to an agreement between the parties, which is conducted by an arbitrator who is appointed by an arbitral institution on an urgent basis due to paucity of time or an urgency pertaining to subject matter of the dispute, to specifically deal with an application for interim relief which cannot wait for the constitution of an arbitral tribunal to deal with the substantive dispute between the parties. Through an EA the parties can obtain an urgent interim relief for a stipulated period of time. An emergency arbitrator has broad powers such as to award any interim relief which may be deemed necessary to safeguard the interests of the succeeding party and this may also include injunctive reliefs, measures for conservation of the subject property and measures to secure the amount in dispute.  If the award is not passed in a timely manner, then the entire process is rendered infructuous. An emergency arbitral award passed in a foreign seat is not enforceable in India, however, an emergency arbitrator award passed by an emergency arbitrator in an Indian seat is enforceable in India under Section 17 of the Act. Owing to this dichotomy, it is more practical for foreign parties should seek an interim order from Indian courts instead of resorting to enforcing that an emergency arbitral award against an Indian party. Some of the amendments that can be made are, 
it was expected that the Arbitration and Conciliation (Amendment) Act, 2015 would embrace the global turn of the tide and create some provisions for the appointment of emergency arbitrators, but the amendment act failed to incorporate the recommendation of the Law Commission and accordingly, does not provide an enabling provision for EA. In the absence of a provision which is similar to Section 17 of the Act for foreign seated arbitrations under Part II of the Act, an emergency award cannot be enforced under the Act and the only method available for enforcing the same would be to file a suit, the disposal of which could take a considerable time thereby rendering the emergency award futile. 
Hope this answered your question
Regards
Nirali Nayak
Law Student


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