Arbitration and Conciliation Act Section 36 — Enforcement
CHAPTER VIII — Finality and enforcement of arbitral awards
Civil
Summary
Sub-section (1) states that once the time limit for filing an application to set aside the arbitral award under section 34 has expired, the award must be enforced according to the rules of the Code of Civil Procedure, 1908, just as if it were a decree of the court. This enforcement is subject to the conditions mentioned in sub-section (2).
Sub-section (2) provides that if an application to set aside the award has been filed in the Court under section 34, merely filing that application does not automatically make the award unenforceable. The award remains enforceable unless the Court specifically grants an order to stay the operation of the award, which can only happen if a separate application for that stay is made, and the stay is granted in line with sub-section (3).
Sub-section (3) says that when an application for stay of the award's operation is filed under sub-section (2), the Court may grant the stay on whatever conditions it considers appropriate, but it must record its reasons in writing for doing so. The first proviso adds that when the award involves payment of money, the Court must consider the rules for staying a money decree under the Code of Civil Procedure, 1908. The second proviso states that if the Court is satisfied that a prima facie case exists showing that the arbitration agreement or contract forming the basis of the award, or the making of the award itself, was induced or effected by fraud or corruption, then the Court must stay the award unconditionally while the challenge under section 34 is pending. The explanation clarifies that this second proviso applies to all court cases related to arbitral proceedings, regardless of whether the arbitral or court proceedings began before or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015.
Official Text
(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court.
(2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose.
(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing:
Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).] 1[Provided further that where the Court is satisfied that a Prima facie case is made out that,—
(a) the arbitration agreement or contract which is the basis of the award; or
(b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award.
Explanation.—For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016).]