Arbitration and Conciliation Act Section 31 — Form and contents of arbitral award
CHAPTER VI — Making of arbitral award and termination of proceedings
Civil
Summary
Sub-section (1) requires that an arbitral award be in writing and signed by all members of the arbitral tribunal.
Sub-section (2) states that when there is more than one arbitrator, the signatures of the majority of the tribunal members are enough, provided the reason for any missing signature is recorded.
Sub-section (3) requires the award to explain the reasons behind it, unless the parties have agreed that no reasons are needed, or the award is made on agreed terms under section 30.
Sub-section (4) requires the award to state its date and the place of arbitration as determined under section 20, and the award is treated as having been made at that place.
Sub-section (5) requires that after the award is made, a signed copy be given to each party.
Sub-section (6) allows the arbitral tribunal to make an interim award on any matter during the proceedings, as long as it could also make a final award on that matter.
Under clause (a) of sub-section (7), unless the parties agree otherwise, if the award orders payment of money, the tribunal may add interest at a rate it considers reasonable, on all or part of the money, for all or part of the period from when the cause of action arose to when the award is made.
Under clause (b) of sub-section (7), any amount directed to be paid by the award will carry interest at a rate two per cent higher than the current rate of interest on the date of the award, from the date of the award until payment, unless the award says otherwise. The explanation clarifies that "current rate of interest" has the same meaning as given in clause (b) of section 2 of the Interest Act, 1978.
Sub-section (8) states that the costs of arbitration are fixed by the arbitral tribunal in line with section 31A. The explanation defines "costs" for clause (a) as reasonable costs covering the fees and expenses of arbitrators and witnesses, legal fees and expenses, any administration fees of the institution supervising the arbitration, and any other expenses connected with the proceedings and the award.
Official Text
(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. 3