Arbitration and Conciliation Act Section 39 — Lien on arbitral award and deposits as to costs
CHAPTER X — Miscellaneous
Civil
Summary
Sub-section (1) states that, unless the arbitration agreement says otherwise, the arbitral tribunal has a right to keep hold of the arbitral award until any unpaid costs of the arbitration are paid. This right is subject to what is stated in sub-section (2).
Sub-section (2) deals with a situation where the arbitral tribunal refuses to hand over the award unless its demanded costs are paid. In such a case, a party can apply to the Court, and the Court may order the tribunal to deliver the award to that party on the condition that the party pays the demanded costs into the Court. The Court can then, after any inquiry it considers necessary, order that a reasonable sum be paid to the tribunal from that money as costs, and that any remaining balance be refunded to the party who paid it in.
Sub-section (3) says that any party can make an application under sub-section (2), unless the fees demanded were fixed by a written agreement between that party and the arbitral tribunal. It also states that the arbitral tribunal has the right to appear and be heard on any such application.
Sub-section (4) provides that if any question arises about the costs of the arbitration, and the arbitral award does not contain enough provision about those costs, the Court may make such orders as it thinks fit regarding those costs.
Official Text
(1) Subject to the provisions of sub-section (2) and to any provision to the contrary in the arbitration agreement, the arbitral tribunal shall have a lien on the arbitral award for any unpaid costs of the arbitration.
(2) If in any case an arbitral tribunal refuses to deliver its award except on payment of the costs demanded by it, the Court may, on an application in this behalf, order that the arbitral tribunal shall deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded, and shall, after such inquiry, if any, as it thinks fit, further order that out of the money so paid into Court there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable and that the balance of the money, if any, shall be refunded to the applicant.
(3) An application under sub-section (2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal, and the arbitral tribunal shall be entitled to appear and be heard on any such application.
(4) The Court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them.