interim relief arbitration

8/11/2019 Interim Relief Arbitration

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INTERIM RELIEF UNDER SECTION 9 OF THE ARBITRATION

AND CONCILIATION ACT, 1996

SEMINAR PAPER ON ARBITRATION LAWS

SUBMITTED BY


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Seminar on Interim Measures under Section 9 of the Arbitration and Conciliation Act, 1996

VIKAS KUMAR

BLI 976

NATIONAL LAW SCHOOL OF INDIA UNIVERSITY

BANGALORE

TRIMESTER XII

Submitted by Vikas umar

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TABLE OF CASES..............................................................................................3

Introduction........................................................................................................5

Methodology.......................................................................................................7

Chapter I: Interim Orders under section 9 o the Act!......................................8Chapter II...........................................................................................................11

Chapter III T"E #AT$%E OF %ELIEF AS &%O'I(E( $#(E% SECTIO#9 OF T"E ACT 20

Chapter I': Interim Orders in Foreign Ar)itration......................................34

C"A&TE% ': CO#CL$SIO#.........................................................................42

BIBLIO*%A&"+...............................................................................................44


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TABLE OF CASES

Al&ine Industries '()nion of India, *19++ 1 Arb LR 363 Delhi.

Anton !iller (-( '( Manufacturin" !rocesses .td(, (1976) Ch 55.

Ashok Cha/'ia '(0akesh -u&ta, (1996) 2 Arb LR 255 (Delhi).

an2ari Ial 0adhey(Mohan v. !un3ab State Co4o& Su&&ly and Mkt" 5edn(

.td., AIR 1983 Delhi 402.

hatia International v. ulk radin" S(A( and Anr(,MANU!C01852002.

inny .td( v( 7i/am su"ars .td,(1997) 88 C"#$ C%&e 741 %' 746 (A).

Chandu .ot v. rit4o'er .td(, 52 CN 451.

Channel unnel -rou& .td. v. alfour eatty Construction .td., 1993 1 All *R664 %' 683

Co&&ee4.a'alin SA87V v. en40en Chemicals and 5ertili/ers .td( *in

.iuidiation (1994) 2 All *.R. 449 %' 466 +L.

Co&&ie4.e'alin SA87V v. en40en Chemicals and 5ertili/ers .td,1994- 2 All

*.R. 449.

:ast Coast Shi&&in" .td( v. M(;( Scra& !'t( .td(,AIR 1997 C%l 168.

5ood Cor&oration of India '( !( A( Ahammed lbrahim, (1989) 1 er L/ 251.

-lobal Co( v. 7ational 5ertili/ers .td,AIR 1998 Delhi 397 %' 400.

-okuldas v. )nion of India, Al R 1983 er 169.


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Mohinder Sin"h = Co( '( :ecuti'e :n"ineer,AIR 1971, 130.

MV0 Industries .td. v. ribal Coo& Mk" ?e'elo&ment 5ederation of India

.td., (1996) 1 Arb 1,R 393 (Delhi).

MV0 Industries .td. v. ribal Coo& Mk" ?e'elo&ment 5ederation of India.td., (1996) 1 Arb LR 393 (Delhi).

7(C( hall v. 0(C( halla (1990) 2 Arb.L.. Delhi.

7arain Sahai A"ra2al v. Santosh 0ani, AIR 1998 Delhi 144.

7ational uildin" Construction Cor&n( .td( '( I0C@7 Intl .td(, *I99+ 1 R%

500

7ational hermal !o2er Cor&n .td( v! 5lo2more ! .td(,AIR 1996 !C 445.

7:!C India .td v.Sundaram 5inance .td, (1998) 2 Arb. LR 446 (M%)(

7e2ab"ani Su"ar Mills Co( lid. v. )nion of India,AIR 1976 !C 1152.

0( ( Associates v.V Channa&&a,AIR 1993 %' 247.

0an3it Chandra Mitter v. )nion of India, AIR 1963 C%l 594.

0a2la Constructionsv. )nion of India, AIR 1977 Delhi 205.

0oussel4)claf '( C?( Searle CB Co( .td and -( ?( Searle = C". 1978- 1

Ll"& Re$. 225

Sha Vakta'armal Sheshmullv. 7ainmull )ma3i = Co., AIR 1962 M% 436.

Subhash Chander akkar '( ?( S( I( ?( C(, (1990) 2 DL/ 21.

Sundaram 5inance .td( '( 7:!C India .td(, (1999) 1 !L/ 179 (!C)(1999).

Sundarlal


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Introduction

A %rbi'r%'i" %;ree#e' i& % "'r%'%l er'% 'he %rbi'r%'i" %;ree#e' "r be%&e he #e%& '" bre%h i'.

/hi& $%$er =ell& 'here>"re " 'he i&&e& %ri&i; =he % $%r' %$$r"%he& 'he

"r'& >"r i'eri# #e%&re&.

Ar'ile 9 rel%'e& '" 'he re";i'i" % e>>e' "> 'he %rbi'r%'i" %;ree#e' b

l%i; "= 'he $rii$le, i&$'e i &"#e ri&i'i"&, 'h%' re&"r' '" % "r' %

&b&e@e' "r' %'i" =i'h re;%r '" i'eri# #e%&re& "> $r"'e'i" %re "#$%'ible

=i'h % %rbi'r%'i" %;ree#e'. I' #&' be %e$'e 'h%' e;%'ive e>>e'B "> % %rbi'r%'i"

%;ree#e', =hih i& '" e?le "r' ri&i'i", "e& "' "$er%'e =i'h re;%r '" &h

i'eri# #e%&re&. /he #%i re%&" bei; 'h%' 'he %v%il%bili' "> &h #e%&re& i& "'

"'r%r '" 'he i'e'i"& "> $%r'ie& %;reei; '" &b#i' % i&$'e '" %rbi'r%'i" % 'he

#e%&re& 'he#&elve& %re "ive '" #% i %rbi'r%'i" i& h" $r"vie&

i'eri# #e%&re& "> $r"'e'i" !h%ll i' be 'he "r'&, 'he %rbi'r%'"r& "r b"'h

/he %&=er& ;ive i %'i"%l %rbi'r%'i" le;i&l%'i" % i %rbi'r%'i" rle& h%ve

h%;e "ver 'he e%r&. !"#e 'i#e %;" i' &ee#e '" be % "##" er&'%i; 'h%'

"l "r'& $r"vie % $r"vi&i"%l relie>. /hi& =%& re>le'e i i'er%'i"%l i&'r#e'&

&h %& 'he 1961 *r"$e% C"ve'i" " I'er%'i"%l C"##eri%l Arbi'r%'i"B =hih

i Ar'ile EI, $%r%;r%$h 4 &'%'e 'h%' % re@e&' >"r i'eri# #e%&re& '" 'he "r'& i& "' %

=%iver "> 'he %rbi'r%'i" %;ree#e'. !i#il%r $r"vi&i"& %re >" i %rbi'r%'i" rle&.

/he e&re 'h%' % $%r' % h%ve re"r&e '" 'he "r'& =i'h"' >e%ri; '" h%e 'he

'r%< "> i&$'e &e''le#e' b #% %

%rbi'r%'"r& "#$e'ee '" ;r%' i'eri# #e%&re& "> $r"'e'i". +"=ever, l%'er, % 're

i >%v"r "> &h % %rbi'r%'"r& "#$e'ee e#er;e. /hi& =%& >ir&' re>le'e i

%rbi'r%'i" rle& &h %& 'he 1976 UNCI/RAL Arbi'r%'i" Rle& >"r I'er%'i"%l

C"##eri%l Arbi'r%'i"B (hee>"r'h UNCI/RAL Rle&), =hih $r"vie >"r % h"ie ">

%$$li%'i". Ar'ile 26, $%r%;r%$h 3 "> 'he UNCI/RAL Rle& re>er& '" "r' %$$li%'i"&


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% ee#& 'he# '" be "#$%'ible =i'h 'he %rbi'r%'i" %;ree#e'. /hi& rei'er%'e& 'he

e&'%bli&he vie=. :' i $%r%;r%$h& 1 % 2 "> 'he %r'ile, 'he UNCI/RAL Rle& ;"

>r'her =he #% i'eri# #e%&re& &h %& 'he &%le "> $eri&h%ble ;""&.

+"=ever, i' i& >"r'%'e 'h%' ei'her 'he Ne= F"r< C"ve'i" "> 10 e 1958

" 'he Re";i'i" % *>"re#e' "> G"rei; Arbi'r%l A=%r& (hee>"r'h Ne= F"r"re#e'. r"b%bl 'he &"l'i" #i;h' be

"re'el $r"vie &i'%bl "l b %'i"%l le;i&l%'i" b $r"vii; ei&ive $r"vi&i"%l

re#eie& %#el =i'hi 'he >r%#e="r< "> "r' %&&i&'%e, >%llHb%< &'%''"r

$r"vi&i"& % l%i; "= 'he $re"i'i"& >"r 'he e>"re#e' "> %rbi'r%'"rH;r%'e

i'eri# #e%&re& "> $r"'e'i".

/he i&&e i i'eri# "rer >r'her ;e'& "#$li%'e =he 'he i'eri# #e%&re&

%re &";h' %;%i&' I'er%'i"%l %rbi'r%'i"& "r =he 'he &e%' "> %rbi'r%'i" >%ll& "'&ie

'he "'r =here i'eri# relie> i& &";h'. /hi& i&&e i& "> "&ier%ble i#$"r'%e i

Ii% e '" 'he ">li'i; ;e#e'& b v%ri"& +i;h C"r'&. /h";h 'he !$re#e

C"r' i Ii% h%& eie 'hi& @e&'i" >i%ll e' i' r%i&e& @i'e i'ere&'i; $r"$"&i'i"&

% i& ="r'h e?%#ii;.


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MET"O(OLO*+

/he '"$i "> 'hi& &e#i%r $%$er i& ,Interim %elie under Section 9 o the

Ar)itration and Conciliation Act- .99/0 1henceorth reerred to as ,the Act02 %

%"ri;l =ell& $" &"#e "> 'he v%ri"& i&&e& r%i&e i 'he "'e?' "> ;r%' ">

i'eri# "rer& b 'he "r'& =i'h re;%r '" 'he "'r%'%l i&$'e& =herei 'he

%;ree#e' %l&" $r"vie& >"r % &e''le#e' 'hr";h %rbi'r%'i" $r"eei;.

/he i'r"'i" '" 'he $%$er $r"vie& 'he b% 'he "##eri%l ="rl.

/hi& &e#i%r $%$er 'he br"%l i&&&e& 'he ;eer%l l%= re;%ri; i'eri#

"rer& ;ive b 'he %'i"%l "r'&, %& "'e#$l%'e er 'he A'. /hi& &e'i" i&

ill&'r%'ive i %'re % bri;& "' 'he v%ri"& i&'%e& ;le%e >r"# 'he %&e l%=&.

/hi& $%$er %l&" "#$%re& 'he $"&i'i" "> *;li&h l%= i 'hi& re;%r. /he &"$e

% 'he %#bi' "> 'he *;li&h l%= %re "> "&iere &i;i>i%e, &ie b"'h 'he Ii%

% 'he *;li&h l%=& "> %rbi'r%'i" %re b%&e " 'he UNCI/RAL #"el l%= " %rbi'r%'i".

/he l%&' i#$"r'%' &e'i" =ell& $" 'he e?i&'i; "'r"ver& i 'he Ii%

"r'&, " 'he $"i' =he'her 'he %'i"%l "r'& i Ii% h%ve 'he ri&i'i" '" ;r%'

i'eri# "rer& =i'h re;%r '" >"rei; %rbi'r%l $r"eei;&.


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Chapter I: Interim Orders under section 9 of the Act.

/he Arbi'r%'i" % C"ili%'i" A', 1996 (A'B) h%& $r"vi&i"& e%bli; % $%r' '"

'he %rbi'r%l $r"eei; '" %$$r"%h 'he "r' '" re@e&' >"r i'eri# #e%&re&.

S.9. In!"#$ $!%&'"!&, !(. )* (+'" 4 A &arty may before, or durin" arbitral&roceedin"s or at any time after the make the arbitral a2ard but before it is enforced

in accordance 2ith section %6, a&&ly to a court4

(i) for the a&&ointment of a "uardian for a minor or a &erson of unsound mind

for the &ur&oses of arbitral &roceedin"sD or

(ii) for an interim measure of &rotection in res&ect of any of the follo2in"

matters, namelyE

(a) the &reser'ation, interim custody or sale of any "oods 2hich are thesub3ect4matter of the arbitration a"reementD

(b) securin" the amount in dis&ute in the arbitrationD

(c) the detention, &reser'ation or ins&ection of any &ro&erty or thin" 2hich is

the sub3ect4matter of the dis&ute in Arbitration, or as to 2hich any

uestion may arise therein and authorisin" for any of the aforesaid

&ur&oses any &erson to enter u&on any land or buildin" in the &ossession

of any &arty, or authori/in" any sam&les to be taken or any obser'ation to

be made, or e&eriment to be tried, 2hich may be necessary or

e&edient for the &ur&ose of obtainin" full information or e'idenceD

(d) interim in3unction or the a&&ointment of a recei'erD

(e) such other interim measure of &rotection as may a&&ear to the court to

be 3ust and con'enient,

and the Court shall ha'e the same &o2er for makin" orders as it has for the

&ur&ose of, and in relation to, any &roceedin"s before it(

/he %%l";"& $r"vi&i" " 'he "r'& $"=er '" ;r%' i'eri# #e%&re& ">

$r"'e'i" i& "'%ie i Ar'ile 9 "> 'he M"el L%= =hih $r"vie& 'h%'

Article 9( Arbitration a"reement and interim measures by court(


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It is not incom&atible 2ith the arbitration a"reement for a &arty toreuest before or durin" arbitral &roceedin"s, from a court aninterim measure of &rotection and for a court to "rant suchmeasure(

Ar'ile 9 l%& "= 'he $rii$le, =hih h%& bee "'e&'e i &"#e %'i"%l

ri&i'i"&, 'h%' re&"r' '" % "r' % % &b&e@e' "r' %'i" i re&$e' ">i'eri# #e%&re& "> $r"'e'i" %re "#$%'ible =i'h % %rbi'r%'i" %;ree#e'./hereb, l%ri>i; 'h%' e>>e' "> % %rbi'r%'i" %;ree#e', =hih i& '" e?le "r'

ri&i'i", "e& "' "$er%'e e;%'ivel i re&$e' '" &h i'eri# #e%&re&. /hehie> re%&" i& 'h%' 'he %v%il%bili' "> &h #e%&re& i& "' "'r%r '" 'he i'e'i"&"> $%r'ie& %;reei; '" &b#i' % i&$'e '" %rbi'r%'i" % 'h%' 'he #e%&re&'he#&elve& %re "ive '" #% $r"'e'i" "vere b %r'ile 9 i& ">

"&ier%ble =ier %#bi' 'h% $r"vie er %r'ile 172"> 'he M"el L%=, 'h%'

e%l& =i'h 'he li#i'e $"=er "> 'he %rbi'r%l 'rib%l '" "rer % $%r' '" '% 'he i&$'e =i'h"'

e%li; =i'h i&&e& "> 'he e>"re#e' "> &h "rer&. I' i& '" be "b&erve 'h%' 'he

#"el l%= i& &ile' %b"' 'he $"&&ible ">li' be'=ee % "rer b 'he %rbi'r%l

'rib%l er %r'ile 17 % % "r' ei&i" er %r'ile 9 rel%'i; '" 'he &%#e

"be' "r #e%&re "> $r"'e'i". +"=ever, i' i& &b#i''e 'h%' 'here i& li''le $"'e'i%l

>"r &h ">li' i vie= "> 'he i&$%ri' "> 'he r%;e "> #e%&re& "vere b 'he '="

%r'ile&.

/he UNCI/RAL "##e'%r " M"el l%= $r"vie& 'h%' %r'ile 9 i'&el> "e&

"' re;l%'e =hih i'eri# #e%&re& "> $r"'e'i" =ere %v%il%ble '" % $%r'. I'#erel e?$re&&e& 'he $rii$le 'h%' % re@e&' >"r % "r' #e%&re %v%il%ble er

1I' h%& bee "##e'e b %'h"ri'ie& li $r"'e'i" %& 'he %rbi'r%l 'rib%l #% "&ier ee&&%r i re&$e' "> 'he&be'H#%''er "> 'he i&$'e. /he %rbi'r%l 'rib%l #% re@ire % $%r' '" $r"vie %$$r"$ri%'e &eri' i"e'i" =i'h &h #e%&re.


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% ;ive le;%l &&'e# 'he ;r%'i; "> &h #e%&re b % "r' "> 'hi& !'%'eJ =%&"#$%'ible =i'h 'he >%' 'h%' 'he $%r'ie& h% %;ree '" &e''le 'heir i&$'e b%rbi'r%'i".


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Chapter II

PART ASCOPE OF SECTION 9 OF THE ACT

/he &"$e "> 'he &e'i" =%& e?%#ie i % v%&' &rve "> %&e& %

%'h"ri'ie& b 'he M%r%& +i;h C"r' i 7:!C India .td v.Sundaram 5inance .td(%

/hi& %&e %r"&e "' "> % hireH$rh%&e 'r%&%'i", =hih %rrie % %rbi'r%'i"

l%&e % 'he ber e>%l'e =i'h % i&'%ll#e'. /he "=er #"ve 'he "r' %

"b'%ie % "rer er !. 9, =i'h"' re&"r' '" 'he %rbi'r%'i" l%&e, >"r ire'

&eiKre "> 'he #%hier =i'h 'he hel$ "> $"lie. /he "rer =%& &e'H%&ie i %

%$$e%l %;%i&' i'. /he M%r%& +i;h C"r' =%& "> 'he vie= 'h%' % re@e&' >"r

%rbi'r%'i" >"r &b&'%'ive relie> &h"l be 'here be>"re !. 9 "l be &e >"r i'eri#

relie> =he'her "r "' % %rbi'r%'"r h%& bee %$$"i'e "r $r"eei;& "##ee

% "' be>"re 'h%'.

I %"'her %&e, 'he #e%&re& 'h%' #% be

'% 'he M%r%& +i;h C"r' =%& rever&e b 'he !$re#e C"r'" %$$e%l Sundaram 5inance .td( '( 7:!C India .td(,$=here 'he !$re#e C"r'

hel 'h%' 'he "r' h%& ri&i'i" er !e'i" 9 '" $%&& i'eri# "rer& eve

3(1998) 2 Arb. LR 446 (M%) /" 'he &%#e e>>e' =%& 7ational uildin" Construction Cor&n( .td( '(I0C@7 Intl .td(, *I99+ 1 R%500, 543 'h%' >"%'i" >"r %rbi'r%'i" #&' be l%i be>"re l%i#i; relie>er !.2. A i'eri# #e%&re %"' be $r"vie =here 'here i& " $r%er >"r &"#e &b&'%'ive relie>,Ashok Cha/'ia '(0akesh -u&ta, (1996) 2 Arb LR 255 (Delhi).

4(1999) 1 !L/ 179 (!C)1999) 1 / 49 (!C)


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be>"re 'he "##ee#e' "> %rbi'r%'i" $r"eei;& % %$$"i'#e' "> %rbi'r%'"r.

All 'h%' &>>ie =%& 'h%' 'here #&' be &%'i&>%'i" " 'he $%r' "> 'he "r' 'h%' 'he

%$$li%' =ill '%>e'ive &'e$& >"r "##ei; %rbi'r%l $r"eei;&. /hi& =%&

re>le'e i 'he >"ll"=i; $%&&%;e i 'he ;#e'5H

>hen a &arty a&&lies under Section 9 of the 1996 Act it is im&licit that itacce&ts that there is a final and bindin" arbitration a"reement in eistence( Itis also im&licit the a dis&ute must ha'e arisen 2hich is referable to the

Arbitral ribunal Section 9 further contem&lates arbitration &roceedin"stakin" &lace bet2een the &arties 2hen an a&&lication under Section 9 is filedbefore the commencement of the arbitral &roceedin"s there has to bemanifest intention on the &art of the a&&licant to rake recourse to the arbitral

&roceedin"s if, at the time 2hen the a&&lication under Section 9 is filed, the&roceedin"s ha'e not commenced under section #1 of the 1996 Act( Inorder to "i'e full effect to the 2ords before or durin" arbitral &roceedin"soccurrin" in Section 9 it 2ould not be necessary that a notice in'okin" thearbitration clause must be issued to the o&&osite &arty before an a&&licationunder Section 9 can be filed( he issuance of a "i'en case of a notice maybe sufficient to establish the manifest intention to ha'e the dis&ute referred toarbitral ribunal but a situation may so demand that a &arty may choose toa&&ly under Section 9 for an interim measure e'en before issuin" a noticecontem&lated by Section #1 of the said Act( If an a&&lication is so made theCourt 2ill first ha'e to be satisfied that there eists a 'alid arbitrationa"reement and the a&&licant intends to take the dis&ute to arbitration( @nceit is so satisfied the Court 2ill ha'e the 3urisdiction to &ass orders underSection 9 "i'in" such interim &rotection as the facts and circumstances2arrant( >hile &assin" such an order and in order to ensure that effecti'este&s are taken to commence the arbitral &roceedin"s, the Court 2hileeercisin" 3urisdiction under Section 9 can &ass conditional order to &ut thea&&licant to such terms as it may deem fit 2ith a fe2 to see that effecti'este&s are taken by the a&&licant for commencin" the arbitral &roceedin"s(>hat is a&&arent, ho2e'er, is that the Court is not debarred from dealin"2ith an a&&lication under Section 9 merely because no notice has beenissued under Section #1 of the 1996 Act(

Re>erri; '" 'he &$$"r', =hih 'he M%r%& +i;h C"r' i 7:!C India .td v.

Sundaram 5inance .td(6h% r%= >r"# 'he 1940 A' i i'er$re'i; 'he 1996 A',

'he !$re#e C"r' &%i7H

5(1999) 1 !L/ %' $. 180 (!C).6(1998) 2 Arb. LR 446 (M%) /" 'he &%#e e>>e' =%& 7ational uildin" Construction Cor&n( .td( '(I0C@7 Intl .td(, *I99+ 1 R%500, 543 'h%' >"%'i" >"r %rbi'r%'i" #&' be l%i be>"re l%i#i; relie>er !.2. A i'eri# #e%&re %"' be $r"vie =here 'here i& " $r%er >"r &"#e &b&'%'ive relie>,Ashok Cha/'ia '(0akesh -u&ta, (1996) 2 Arb LR 255 (Delhi).

7 (1991) 1 !L/ %' $$. 185, 188H189 (!C).


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he 1996 Act is 'ery different from the Arbitration Act, 19$F( he &ro'isions

of this Act ha'eD therefore, to be inter&reted and construed inde&endently

and in fact reference to 19$F Act may actually lead to misconstruction( In

other 2ords, the &ro'isions of 1996 Act ha'e to be inter&reted bein"

uninfluenced by the &rinci&les underlyin" the 19$F Act( In order to "et hel&

in construin" these &ro'isions it is more rele'ant to refer to the )7CI0A.

Model .a2 rather than the 19$F Act(

Section 9 of the said Act corres&onds to article 9 of the )7CI0A. model.a2, this article reco"ni/es, 3ust like Section 9 of the 1996 Act, a reuestbein" made before a Court for an interim measure of &rotection beforearbitral &roceedin"s( It is &ossible that in some countries if a &arty 2ent tothe Court seekin" interim measure of &rotection that mi"ht be construedunder the local la2 as meanin" that the said &arty had 2ai'ed its ri"ht to takerecourse to arbitration( Article 9 of the )7CI0A. Model la2 seeks to clarify

that merely because a &arty to an arbitration a"reement reuests the Courtfor an interim measure before or durin" arbitral &roceedin"sJ such recourse2ould not be re"arded as bein" incom&atible 2ith an arbitration a"reement(o &ut it differently the arbitration &roceedin"s can commence and continuenot 2ith standin" one &arty to the arbitration a"reement ha'in" a&&roachedthe Court for an order for interim &rotection( he lan"ua"e of Section 9 ofthe 1996 Act is not identical to Article 9 of the )7CI0A. Model .a2 but thee&ression before or durin" arbitral &roceedin"s used in Section 9 of the1996 Act seems to ha'e been inserted 2ith a 'ie2 to "i'e it the samemeanin" as these 2ords ha'e in Article 9 of the )7CI0A. Model .a2( It isclear, therefore, that a !arty to an arbitration a"reement can a&&roach theCourt for interim relief not only durin" the arbitral &roceedin"s but e'en

before the arbitral &roceedin"s( o that etent Section 9 of the 1996 Act issimilar to Article 9 of the )7CI0A. Model .a2(

It 2ill also be useful to refer to a some2hat similar &ro'ision in the Arbitration

Act, 1996 of :n"land( Section $$ of this Act "i'es the Court &o2ers, 2hich

are eercisable in su&&ort of the arbitral &roceedin"s( Sub4section *% of

Section $$ &ermits, in the case of ur"ency, the Court to make an order

contem&lated by Sub4section *# e'en on an a&&lication by a &ro&osed &arty

to the arbitral &roceedin"s( he e&ression used in this Sub4section &arty

or &ro&osed &arty to the arbitral &roceedin"s sho2s that 2here arbitral

&roceedin"s ha'e commenced then the a&&lication 2ill ob'iously be of a

&arty to the said &roceedin"s but 2here the arbitral &roceedin"s ha'e not

commenced a K&ro&osed &artyL has been "i'en the ri"ht to a&&roach the

Court( A &ro&osed &arty to the arbitral &roceedin"s 2ould, therefore, be one

2ho is &arty to an arbitration a"reement and 2here dis&utes ha'e arisen but


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the arbitral &roceedin"s ha'e not commenced( >hile referrin" to Section $$

of the :n"lish Act in dealin" 2ith the uestion of "rant of interim in3unctions

in su&&ort of arbitral &roceedin"s 0ussell @n Arbitration+, has stated as

under

he Court may eercise its &o2er to "rant an interim in3unction before there hasbeen any reuest for arbitration or the a&&ointment of arbitrators, &ro'ided thatthe a&&licant intends to refer the dis&ute to arbitration in due course(

he &o2er to "rant an interim in3unction under Section $$ of the Act etendsto the "rantin" of a Mare'a in3unction in a&&ro&riate cases( It may alsoinclude "rantin" an interim mandatory in3unction, althou"h the Court 2ill beslo2 to "rant an in3unction 2hich &ro'ides a remedy of essentially the samekind as is ultimately bein" sou"ht from the Arbitral ribunal(

/he !$re#e C"r' "$ie 'h%' 'hi& vie= "rre'l re$re&e'& 'he $"&i'i" i

l%=, %#el, 'h%' eve be>"re 'he "##ee#e' "> %rbi'r%l $r"eei;& 'he C"r'

% ;r%' i'eri# relie>. /he &%i $r"vi&i" "'%i& 'he &%#e $rii$le, =hih

erlie& !e'i" 9 "> 'he 1996 A'.9

/h&, er 'he 1940 %' 'here =%& % i>>eree "> "$ii" %& '" =he'her

relie> "l be ;r%'e er 'he &e'i" be>"re re>eree h% bee #%e '"

%rbi'r%'i". e vie= =%& 'h%' relie> ="l "' be ;ive le&& %rbi'r%'i"

$r"eei;& =ere $ei; be>"re 'he %rbi'r%'"r.10 /he "'her vie= =%& 'h%' relie>

er 'he &e'i" "l be ;r%'e be>"re % i %'ii$%'i" "> % re>eree, %

be>"re % "rer "> re>eree =%& #%e,11 'here re%&" =h 'he ="r $ei;B

&h"l be %e be>"re 'he ="r& %rbi'r%'i" $r"eei;& i &e'i" 41(b), 1940

A'.12 N"= !. 9 "> 'he Arbi'r%'i" % C"ili%'i" A', 1996 #% 'he U Arbi'r%'i" A' 1950, !/RAU+/N, L "b&erve %&er

I # vie= 'hi& $"=er % be e?eri&e be>"re 'here h%& bee % re@e&' >"r %rbi'r%'i" "r 'he%$$"i'#e' "> Arbi'r%'"r&, $r"vie 'h%' 'he %$$li%' i'e& '" '% 'heC"r' i &h % %&e ="l be e?eri&e >"r 'he $r$"&e "> % i rel%'i" '" % re>eree.B

100an3it Chandra Mitter v. )nion of India, AIR 1963 C%l 594.

11-okuldas v. )nion of India, Al R 1983 er 169.12Chandu .ot v. rit4o'er .td(, 52 CN 451.


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PART B:POSITION UNDER ENGLISH LAW

/he ;eer%l $rii$le i& &'%'e i %r' 1 "> 'he *;li&h Arbi'r%'i" A' 1996 %&

>"ll"=&

in matters "o'erned by this !art of the ActN the court should not inter'eneece&t as &ro'ided by this &art.B

/hi& &'%'e#e' "> $rii$le i 'he ver >ir&' &e'i" "> 'he Arbi'r%'i" A' 1996

i& le%r re";i'i" "> 'he ee '" li#i' % e>ie 'he "r'& r"le i %rbi'r%'i". /he

+"&e "> L"r& h%& &'%'e i 'hi& re;%r %& er H

>hate'er 'ie2 is taken re"ardin" the correct balance of the relationshi&

bet2een international arbitration and national courts, it is im&ossible to doubtthat at least in some instances the inter'ention of the court may be not only

&ermissible but hi"hly beneficial(1%

/he *;li&h "r'& "l e%&il &'i> 'heir r"le =here 'he $%r'ie& %re *;li&h% 'he %rbi'r%'i" i& '" >"ll"= 'he "r#%l *;li&h rle& "> $r"ere. I' i& le&& e%&'" &'i> i % %&e, "'e er 'he rle& "> % i'er%'i"%l %rbi'r%'i" b".(>"r e?%#$le 'he ICC), =here 'he $%r'ie& ,%re >"rei;, % 'he "l "e'i" =i'h*;l% bei; 'he $%r'ie& h"ie, ire'l "r iire'l, '" h"l 'heir %rbi'r%'i" 'here.

I Co&&ie4.e'alin SA87V v. en40en Chemicals and 5ertili/ers .td,1$=hih

=%& eie $ri"r '" 'he e%'#e' "> 'he *;li&h Arbi'r%'i" A' 1996, % i&'i'i"

=%& r%= be'=ee 'hree ;r"$& "> #e%&re& 'h%' iv"lve 'he "r' i %rbi'r%'i"O

'he >ir&' bei; $rel $r"er%l &'e$& =hih % %rbi'r%l 'rib%l %"' "rer "r

%"' e>"re *e"( i&&i; &b$"e%&), 'he &e" bei; e&i;e '" #%i'%i 'he

&'%'& @" 'he ;r%'i; "> i'erl"'"r i'i"&) % 'he 'hir bei; e&i;e '"

e&re 'he %=%r h%& i'& i'ee $r%'i%l e>>e' b $r"vii; % #e%& ">

e>"re#e' i> 'he %=%r i& "' v"l'%ril "#$lie =i'h. I' =%& $"i'e "' 'h%' 'he

'hree ;r"$& e'%il i>>eri; e;ree& "> er"%h#e' " 'he 'rib%l& '%&< ">

eii; 'he #eri'& "> 'he i&$'e % 'h%' 'he e?'e' "> &h i'r&i" &h"l

"i'i" '" % i#$"r'%' e?'e'B 'he "r'& %$$r"%h. De&$i'e 'he h%;e& #%e

b 'he Arbi'r%'i" A' 1996, 'he i&'i'i" re#%i& v%li.

13er L"r M&'ill i Co&&ee4.a'alin SA87V v. en40en Chemicals and 5ertili/ers .td( *in.iuidiation (1994) 2 All *.R. 449 %' 466 +L.

141994- 2 All *.R. 449.


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/he *;li&h C"r'& #% i'ervee =hile %rbi'r%'i" $r"eei;& %re $ei;

% i'& $"=er& '" " &". /he ile $"=er '" e?'e 'i#e li#i'& >"r "##ei;

'he %rbi'r%l $r"eei;& % >"r #% l%=. /he

"r' %l&" h%& $"=er '" re#"ve % %rbi'r%'"r % '" %$$"i' % re$l%e#e'. /he

"r' #% %l&" #%ie 'h%' 'he %rbi'r%'i" %;ree#e' i& ll % v"i, i"$er%'ive, "r i%$%ble ">

bei; $er>"r#eB. /he "r' %l&" h%& % ihere' ri&i'i" '" ;r%' % &'% i

er'%i ir#&'%e& li

'he &'%''"r ri&i'i". /he ihere' ri&i'i" #% be %$$r"$ri%'e 'h";h =here

'here i& " %rbi'r%'i" %;ree#e' =i'hi 'he #e%i; "> &e'i" 6 "> 'he Arbi'r%'i"

A' 1996 "r =here 'he %rbi'r%'i" l%&e i& "' i##ei%'el e>>e'ive16"r >"r &"#e

"'her re%&" 'he A$$li%'i" >%ll& &h"r' "> 'he re@ire#e'& >"r % &'% er 'he

Arbi'r%'i" A' 1996.

A &'% b%&e " 'he ihere' ri&i'i" #% %l&" be %$$r"$ri%'e =here 'here

%re '=" e>e%'& '" 'he "r' $r"eei;&, "e "> =h"# i& "' % $%r' '" 'he

%rbi'r%'i" %;ree#e' b' l%i#& 'hr";h "r er 'he "'her e>e%' b vir'e "> %

"'r%' "> %;e.17 /hi& '"he& " % $%r'il%rl i>>il' i&&e i rel%'i" '"

%rbi'r%'i" %;ree#e'&. I' #"&' >re@e'l %ri&e& i 'he "'e?' "> ;r"$& ">

"#$%ie&, =here >"r e?%#$le "e i 'he ;r"$ h%& &i;e % "'r%' "'%ii; %

%rbi'r%'i" l%&e "r r"$ C"#$% h%& $er>"r#e 'he "'r%'.

Uer 'he *;li&h L%= 'here i& " re@ire#e' 'h%' 'he re>eree '"

%rbi'r%'i" #&' h%ve bee &'%r'e. Iee, 'he >%' 'h%' 'he i&$'e %"'

15Channel unnel -rou& .td and @thers v. alfour 'eaty Construction .td and @thers, 1993- 1Ll"J& Re$.291.

16Id(17 0oussel4)claf '( C?( Searle CB Co( .td and -( ?( Searle = C". 1978- 1 Ll"& Re$. 225 %' 22930. /he "r' i 'h%' %&e =%& $re$%re '" ;r%' % &'% b%&e b"'h " i'& ihere' ri&i'i" % " i'&>ii; 'h%' "e "> 'he ;r"$ "#$%ie& =%& l%i#ie 'hr";h "r erB 'he "'her Ri'hi 'he #%i;"> &.1 "> 'he Arbi'r%'i" A' 1975. /he ="r& @"'e " "' %$$e%r i 'he Arbi'r%'i" A' 1996 % 'heei&i" h%& bee ri'ii&e.


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i##ei%'el be re>erre '" %rbi'r%'i", be%&e 'he #%''er i& '" be re>erre '"

%rbi'r%'i" "l %>'er 'he e?h%&'i" "> "'her i&$'e re&"l'i" $r"ere& =ill "'

$reve' 'he "r' >r"# "reri; % &'%.18

18Arbi'r%'i" A' 1996, &.9(2) =hih >"ll"=e 'he ei&i" i Channel unnel -rou& .td and@lhers '(alfour eatty Construction .td and @thers 19931 1 Ll"J& 1 Re$. 291, +L.


!a"e #F of $#

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Chapter IIITHE NAT!E OF !ELIEF AS "!O#I$E$ N$E! SECTION 9 OF THEACT

/he $re&e' h%$'er i&&&e& 'hre%b%re 'he v%ri"& "$ii" %& '" =he'her relie>"l be ;ive er 'hi& &e'i" be>"re re>eree h% bee #%e '" %rbi'r%'i". e

vie= =%& 'h%' relie> "l "' be ;ive le&& %rbi'r%'i" $r"eei;& =ere $ei;

be>"re 'he %rbi'r%'"r. /he "'her vie= =%& 'h%' relie> er 'he &e'i" "l be ;r%'e

be>"re % i %'ii$%'i" "> % re>eree, % be>"re % "rer "> re>eree =%& #%e,

'here bei; " re%&" =h 'he ="r $ei;B &h"l be %e be>"re 'he ="r&B

%rbi'r%'i" $r"eei;&B i &e'i" 41(b), 1940 A'. N"= 'he $re&e' &e'i" 9 "> 'he A'

#% ""& A', 1930 % #"re"ver

&", i %&e =here 'he ;""& %re "> % $eri&h%ble %'re.

PART B ORDER FOR PROTECTION OF FINANCIAL INTEREST -SECTION

9##/)/0

I -lobal Co( v. 7ational 5ertili/ers .td(, 'he Delhi +i;h C"r' hel 'h%' % $e'i'i"er

%"' &ee< % i'eri# "rer "r 'he &"le ;r" "> $r"'e'i" "> hi& >i%i%l

i'ere&'&. /he %=%ree h%& '" $r"ve 'he re&$"e'& i'e'i" '" e>>e', el% "r

"b&'r' e?e'i" "> 'he %=%r. /he "r' &%i19H

It is true that the said Arbitration Act, 19$F stands re&ealed by the Act of1996 and the &ro'isions contained in the Code of Ci'il !rocedure are nota&&licable to the &roceedin"s under the Act( Still, in the absence of

"uidelines ho2 the &o2er for "rant of relief under section 9*ii*b is to beeercised by, the Court, the &rinci&les underlyin" the aforesaid sections areto be a&&lied( It is only on adeuate material bein" su&&lied by the &etitionerthat the Court can form o&inion that unless the 3urisdiction is eercised underthe said Section 9*ii there is real dan"er of the res&ondent defeatin",delayin" or obstructin" the eecution of the a2ard made a"ainst it( @n thebasis of the only "round of &rotection of financial interest of the &etitioner, the

19AIR 1998 Delhi 397 %' 400.


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res&ondent, a -o't( of India )ndertakin", cannot be le"ally directed tofurnish security for the amount of )SO ++,#BF to"ether 2ith interest P 9Q

&(a(

I' #&' be "'e 'h%' 'he "r' h%& " $"=er '" ire' % %rbi'r%'"r '" $%&& %

i'eri# %=%r % 'h%' '"" >"r % &$ei>ie %#"'.20+"=ever, 'he "r' i& "#$e'e'

'" $%&& % "rer "> %''%h#e' be>"re ;#e' b iv""r "&'&, 'he "r'& =ill &%ll re@ire % l%i#%', i> i' i& %

>"rei; "#$% "' "> Ii% "r % $er&" "' "> Ii% =h" "e& "' $"&&e&&

&>>iie' i##"v%ble $r"$er' i Ii%, '" >ri&h &eri' >"r %ll 'he "&'& irre "r

li &eri' >"r "&'&. /he

e$"&i' i %v%e #% be &$$le#e'e %>'er=%r& %"ri; '" e?i;eie&. A

&e$%r%'e "&' #% be >i?e li e>%l'. here e$"&i' i& "' #%e b % $%r' i re&$e' "> %

$%r'il%r l%i# "r "'erHl%i#, 'he 'rib%l #% &&$e "r 'er#i%'e 'he %rbi'r%l

$r"e&& i re&$e' 'here">. A' 'he e "> 'he $r"eei;&, 'he 'rib%l h%& '" ;ive %

%"' "> 'he #"e i e$"&i' % re'r 'he &e %#"' '" 'he $%r'ie&.

"> 'he e>>e'& "> 'he $r"vi&i" i& 'h%' 'he $"=er "> 'he "r' '" "rer

&eri' >"r "&'& be"#e& ve&'e i 'he %rbi'r%l 'rib%l '" 'he e?l&i" "> 'he

"r'. /hi& re>"r# h%& bee e>>e'%'e b 'he *;li&h Arbi'r%'i" A', 1996 %l&".

/here %l&" e%rlier 'he $"=er =%& ve&'e i 'he "r'. 22/he *;li&h Arbi'r%'i" A',

1996 "e& "' &$ei> 'he b%&i& " =hih 'he &eri' >"r "&'& &h"l "r &h"l "'

be ;r%'e. /he 'rib%l h%& % br"% i&re'i".

20)nion of India v( @m Construction % Su&&ly Co(,AIR 1994 All 334. !h % "rer, i> $%&&e, #ill"' be % i'erl"'"r "rer, i' ="l %#"' '" %&e eie.

21See, rer 25, Rle 1 "> 'he C"e "> Civil r"ere.

22G"r e?%#$le, &ee Co&&ee4.a'alin !A v( eHRe Che#i%l& Ger'iliKer& L' (1994) 2 All *R 449.here % $%r' =%& ire'e '" ;ive % &eri' >"r 'he "'her $%r'ie& "&'& 'h";h 'he "l "e'i"=i'h 'he *;li&h l%= =%& 'h%' 'he &e%' "> %rbi'r%'i" =%& i *;l%.


!a"e ## of $#

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/here i& " e?$re&& "r i#$lii' $r"vi&i" i &e'i" 9 >"r $%#e' "> % i'eri#

%#"' " %"' "> %#%;e&, eb' e'. I> 'he $%r'ie& h%ve &" %;ree, 'he %rbi'r%l

'rib%l =ill h%ve 'he $"=er '" "rer % $r"vi&i"%l $%#e' er &e'i" 17.

PART CIN1UNCTION RESTRAINING ALIENATION OF PROPERTY -S!(. 9 ##/(/0

hile % %rbi'r%'i" $r"eei;& =%& $ei; be>"re 'he "r', % 'e#$"r%r

i'i" =%& ;r%'e $reve'i; 'he e>e%' >r"# %lie%'i; $r"$er'. A

%$$li%'i" >"r 'he &%#e =%& >ille er !. 41(1)(b) re% =i'h !h II, 1940 A'.

!e'i" 41, 1940 A' &'%'e 'h%' 'he "r' h% 'he &%#e $"=er "> #% % "> 'he #%''er& &e' "' i !h II %& i' ="l h%ve i %ll ivil

$r"eei;&. e "> 'he #%''er& &e' "' i !h II =%& i'eri# i'i". /h& i'

=%& %b%'l le%r 'h%' 'he "r' h% 'he $"=er er !. 41(1)(b) re% =i'h !h

II, 1940 A' '" i&&e i'eri# I'i"& =i'h "l 'hi& re&'ri'i" 'h%' &h i'i"&

"l be i&&e >"r 'he $r$"&e % i rel%'i" '" %rbi'r%'i" $r"eei;&. /he

i'i" =%& hel '" be ri;h'l ;r%'e.23N" i'i" =%& %ll"=e '" $reve' &%le

"> &'"< %' 'he i&'%e "> % $%r' =h" h% >%ile '" '%"r i'

i 'i#e.

24

/he ="r $r"$er'B i& "' e>ie i 'he A'. :' i "'her relev%' &'%''"r

$r"vi&i"&, i' i& e>ie br"%l '" ile % l%, h%''el "r "'her "r$"re%l

$r"$er' "> % e&ri$'i". /he "e$' "> $r"$er' ="l %$$e%r '" be =ier 'h%

;""&J.. A "rer er 'hi& &e'i" =%& re>&e =here 'he %$$li%' &";h'

i&$e'i" "> % i&'ri%l $r"e&&. /he "r' &%i 'h%' &h $r"e&& "l "' be

re;%re %& % $r"$er'.25

I#3$#CTIO# TO &%E'E#T SALE OF SEI4E( &%O&E%T+

230( ( Associates v.V Channa&&a,AIR 1993 %' 247.

24MV0 Industries .td. v. ribal Coo& Mk" ?e'elo&ment 5ederation of India .td., (1996) 1 Arb LR 393(Delhi).

25udorA#l%'"r Co( '( China Mutual, etc( Co(, (1930) N 201.


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23


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here % "'r%' >"r &%le "> 'i#ber =%& %elle % 'ree& %lre% >elle =ere

&eiKe b 'he "lle'"r, % i'i" =%& i&&e '" $reve' &%le "> &h 'i#ber %

'" $re&erve status @".26 /he "r' re>erre '" M&'ill % :", C"##eri%l

Arbi'r%'i"27 % 'he ei&i" i 5ood Cor&oration of India '( !( A( Ahammed

lbrahim#+'" >i &$$"r' >"r 'he $r"$"&i'i" 'h%' 'he e&"r "> 'he ri&i'i" "> 'he

"r' " re>eree "> 'he i&$'e '" %rbi'r%'i" i& "l $r"vi&i"%l % 'il % v%li

%=%r i& $%&&e 'he "r' re'%i& i'& erli; ri&i'i" =hih i er'%i

ir#&'%e& i' =ill be e'i'le '" %&e. /he "r' %l&" h% ihere' $"=er i 'he

#%''er,29 =hih % be e?eri&e i 'he %b&ee "> % e?$re&& "r i#$lie

$r"hibi'i" i 'he erli; e%'#e'.30 +ee 'he "r'& =hih %re &eiKe ">

%$$li%'i"& er 'he Arbi'r%'i" A' % i 'he e?eri&e "> ihere' ri&i'i" $%&&

%$$r"$ri%'e "rer& "&i&'e' =i'h 'he $r"er%l rle& "> CC %& #% be ee&&%r

>"r 'he e& "> &'ie.

/he "r' i'e 'he >"ll"=i; $%&&%;e >r"# R&&ell " Arbi'r%r'i"

Ruite a&art from these e&ress &o2ers *ie( Statutory &o2ers similar to those

under the Arbitration Act the court has al2ays been 2illin" to assist in this

2ay in &ro&er cases(

/he "r', i "rer '" $re&erve 'he status uo, i % %&e =here "e "> 'he

$%r'ie& '" % "'r%' h% ;ive % "'ie, $r$"r'i; '" ii&& 'he "'r%'"r,

re&'r%ie 'he $%r' >r"# %'i; " 'he "'ie 'il ;#e' "r >r'her "rer, "r 'il

% re>eree& '" %rbi'r%'i" $r"vie >"r b 'he "'r%' h% bee #%e. 31

PART DORDERS FOR PRESERVATION OF EVIDENCE -S!(. 9 ##/ (/0 +"ANTON PILLER ORDERS

26rahama"iri ( :state v.homan ;ose&h alathur, (1990) 2 Arb LR (er).27. 123 (1982).28(1989) 1 er L/ 251.

297e2ab"ani Su"ar Mills Co( lid. v. )nion of India,AIR 1976 !C 1152.

30I(M( ?( Syndicatev. . Commr( 7e2 ?elhi, AIR 1977 !C 1348.315osterv(


25/42


!e'i" 9(ii)() $er#i'& 'he "r' '" #%"r $r"'e'i" "> i'elle'%l $r"$er' ri;h'&. !h

% "rer i& "##"l 'e e&'r"e b 'he i>ri;i; $%r'ie& i "rer

'" e>e%' 'he $l%i'i>>& l%i#.

&%O($CTIO# OF (OC$ME#TS

I % i&$'e be'=ee $%r'er& re;%ri; $%r'er&hi$ b&ie&&, 'here =ere

l%i#& % "'erHl%i#& be'=ee 'he# %b"' 'he &'" "> 'he "#e'&. A

$%r'er %$$lie '" 'he "r' er !. 9 "> 'he Arbi'r%'i" % C"ili%'i" A', 1996

>"r % "rer >"r $r"'i" "> "#e'&. /he "r' re>&e '" $%&& % &h "rer

be%&e &h % %$$li%'i" i& "' #%i'%i%ble er !. 9.33

&%O($CTIO# OF (OC$ME#TS F%OM T"I%( &A%T+

!e'i" 12(4) "> 'he *;li&h Arbi'r%'i" A', 1950 re$l%e b 'he Arbi'r%'i"

A', 1996- e#$"=ere "r'& '" i&&e #"& >"r $r"'i" "> "#e'&. I' h%&

bee "b&erve 'h%' =he 'hi& $"=er i& bei; e?eri&e >"r $r"'i" "> "#e'&

>r"# 'he &'" "> % 'hir $%r', 'he "r' &h"l be vi;il%' '" e&re 'h%' 'he

$"=er i& e?eri&e >"r % le;i'i#%'e $r$"&e. here 'he %r;" =%& >" '" be

"'%#i%'e " i&h%r;e % 'he @e&'i" %& '" 'he >i'e&& "> 'he &hi$ >"r 'he

%r;" %r"&e, 'he %;;rieve $%r' "b'%ie % "rer >"r i&"ver "> "#e'&

rel%'i; '" 'he "i'i" "> 'he ve&&el >r"# 'he %&&"i%'i" "> &hi$ "=er&. /he "rer

"> $r"'i" =%& &e' %&ie. /he "rer "> $r"'i" =%& >" '" be '"" =ie %

"' ">ie '" le;i'i#%'e $r$"&e&.

A& '" 'hir $%r'ie&, %l'h";h 'he "li; ="r& "> &e'i" 44(2)() "> 'he

1996 A' U- li#i' 'he "r'& $"=er '" %'h"riKe e'r "> $re#i&e& '" 'h"&e

i&'%e& =here 'he &remises %re i 'he $"&&e&&i" "r "'r"l "> % $%r' '" 'he

32Anton !iller (-( '( Manufacturin" !rocesses .td(, (1976) Ch 55.337arain Sahai A"ra2al v. Santosh 0ani, AIR 1998 Delhi 144.


!a"e #B of $#

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%rbi'r%'i", 'here ="l &ee# '" be " re%&" '" re% 'he $reei; ele#e'& "> 'h%'

&bH&e'i" %& ee&&%ril re@iri; 'h%' 'he &ro&erly "> =hih e'e'i" "r

i&$e'i", e'., i& &";h' #&' be i 'he $"&&e&&i" "r "'r"l "> % $%r'. /he DAC

Re$"r' re>er& '" 'he $"&&ibili' "> "rer& er &e'i" 44 "> 'he A' h%vi; % e>>e'

" 'hir $%r'ie&, % &" &$$"r'& % e?'ee "&'r'i" "> &e'i" 44(2)(). A&

>%r %& i' #% be relev%', i' %$$e%r& '" h%ve bee %&e 'h%' 'he $%r%llel

$r"vi&i"& "> 'he 1950 A' $er#i''e "rer& '" be #%e ire'e %' 'hir $%r'ie&. :'

'he $"&i'i" i& "' e'irel le%r, &ie i le;%l $r"eei;& 'he $"=er '" #% $r"$er' i 'he h%& "> 'hir $%r'ie& i&

e?eri&%ble "l i> 'he l%i# rel%'e& '" $er&"%l ir "r e%'hO &ee &e'i" 34(3) ">

'he !$re#e C"r' A' 1981 % R!C rer 29, r.7(A)(2)-. /he $"=er i rel%'i" '"

%rbi'r%'i" $r"eei;& #% be &i#il%rl ">ie.

PART EINTERIM IN1UNCTIONS -SECTION 9 ##/3/0

/hi& &e'i" #erel e%ble& 'he "r' '" ;r%' i'eri# relie> b =% ">

i'i" i % >i' %&e. /here i& "'hi; i 'he &%i &e'i" '" =%rr%' 'he

%&$'i" 'h%' 'he =ell e&'%bli&he $rii$le& ;"veri; 'he ;r%' "> 'e#$"r%r

i'i"&, li er 'hi& &e'i". I inny .td( v(

7i/am su"ars .td%$ " 'he >%'& % ir#&'%e& "> 'hi& %&e, 'he +i;h C"r'

re>&e '" ;r%' % i'i" i re&$e' "> b%< ;%r%'ee&. /he "r' i 'hi&

re;%r, relie $" 'he =ell e&'%bli&he $rii$le& %& rei'er%'e b 'he !$re#e

C"r' i orksConstruction .id( '( ara&ore = Co.35A i'i"

re&'r%ii; e%&h#e' "> b%< ;%r%'ee& % be ;r%'e b 'he "r' "l i %&e

"> >r% "r i %&e =here irre'riev%ble i&'ie ="l be "e i> 'he b%< ;%r%'ee

i& %ll"=e '" be eH%&he. /he %$e? "r' >r'her hel 'h%' 'he e?i&'ee "> %

&eri"& i&$'e " 'he @e&'i" =h" h% "##i''e bre%h "> 'he "'r%' "r 'h%'

'he "'r%'"r h% % "'erl%i# %;%i&' 'he bee>ii%r "r 'h%' 'he i&$'e&

be'=ee 'he $%r'ie& h% bee re>erre '" 'he %rbi'r%'"r&, e'., %re "' v%li ;r"&

>"r ;r%'i; % i'i" re&'r%ii; 'he e>"re#e' "> b%< ;%r%'ee&. I' =%&

%l&" hel 'h%' 'he "'r%' "> b%< ;%r%'ee be'=ee 'he b%< % 'he bee>ii%r

34(1997) 88 C"#$ C%&e 741 %' 746 (A).35(1996) 87 C"#$ C%&e 344.


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i& ie$ee' "> 'he $ri#%r "'r%' be'=ee 'he $%r' >ri&hi; 'he b%ii%r %, 'here>"re, e%&h#e' "> % "i'i"%l b%erre '" %rbi'r%'i", 'he "r' "l ri;

'he $ee "> 'he %rbi'r%'i" $r"eei;& ;r%' % i'i" re&'r%ii; 'he

%$$ell%' >r"# e>>e'i; re"ver "> 'he %#"'& l%i#e i 'he %rbi'r%'i"

$r"eei;& >r"# $ei; bill& >"r %#"'& e >r"# 'he %$$ell%'& '" 'he

re&$"e' er "'her "'r%'&. !h % "rer i& e;%'ive "' "l i >"r# b' i

&b&'%e. I' h%& " $"&i'ive "'e'.37G"ll"=i; 'hi& rli;, 'he M +i;h C"r'

hel 'h%' eve i> % %'h"ri' h%& 'er#i%'e 'he "'r%' =r";>ll, i' % "' be

$reve'e >r"# ivi'i; >re&h 'eer& >"r 'he &%#e $r"e'. I'& li%bili' '"

"#$e&%'i" >"r bre%h "> "'r%' i& 'he %$$r"$ri%'e re#e '" be $er&e b 'he

%;;rieve "'r%'"r.38/he !$re#e C"r' re>&e '" i&&e % i'i" '" re&'r%i

'he "ver#e' >r"# =i'hh"li; $%#e'& e '" 'he "'r%'"r er "'her

"'r%'&. /he "r' &%i 'h%' 'he i'ive $"=er er 'he &e'i" i& ">ie '"

#%''er&, =hih %re >"r 'he $r$"&e "> % i rel%'i" '" %rbi'r%'i" $r"eei;&. I

'hi& %&e, 'he #%''er "#$l%ie "> =%& "' "ere =i'h 'he "'r%' er

i&$'e.39

/he "r' "l "' ire' 'he %$$ell%' '" $% 'he %#"'& e '" 'he

re&$"e' er 'he "'her "'r%'&, >"r &h % "rer ="l "' be >"r 'he

$r$"&e "> % i rel%'i" '" 'he %rbi'r%'i" $r"eei;&.40/he "r' #% ire' 'he

e'e'i" "> #"e& li; i "r'41 % "'her #"e&42 $ei; 'he %rbi'r%'i"

$r"eei;&.

36!ee %l&" 7ational hermal !o2er Cor&n .td( v! 5lo2more ! .td(,AIR 1996 !C 445, e>>e' $" 'he

ri;h' "> e%&h#e' =here iv"%'i" h%& er'%i "i'i"& '" >l>ill.37)nion of India v. 0aman Iron 5oundry, (1974) !$$ !CC 556 %' $$. 561, 562.

38a3 uildersv.Indore ?e'elo&ment Authority, AIR 1985 M 146.

39C 0a"ha'a 0eddy 5! Su&erintendin" :n"ineer,AIR 1988 A 53. /he "r' "&iere Ui" ofIndia V( 0aman Iron 5oundry,AIR 1974 !C 1265, "rer >"r #%i'e%e "> status uoN %


28/42


/he relie> b =% "> i'i" %"' be l%i#e %& "> ri;h'. A biler ">

r"%& l%i#e 'h%' 'he "ver#e' &h"l be $reve'e >r"# %ll"''i; "'her ="r $bli "veiee % '" h"l $

'he ="r< " r"%& 'ill 'he %rbi'r%'"r& ei&i" ="l be %;%i&' %"& "> &'ie.43

43Mohinder Sin"h = Co( '( :ecuti'e :n"ineer,AIR 1971, 130. See alsoAl&ine Industries '()nion of India, *19++ 1 Arb LR 363 Delhi, 'he "r' i "' i'er>ere i 'he #%''er "> re'i" "> r%'e&i 'he >'re =hile 'he l%i# =%& $ei; be>"re 'he %rbi'r%'"r, 'he "r' >" 'h%' 'he "'r%'"r h%hi#&el> @"'e ree r%'e& i "'her "'r%'&.


!a"e #+ of $#

28


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I#3$#CTIO# TO &%E'E#T %E'OCATIO# OF CO#T%ACT

here ri; 'he $ee "> 'he %rbi'r%'i" $r"eei;& "e "> 'he $%r'ie&

rev" % "'her "b'%ie % i'i" %;%i&' i' revi&i"

%;%i&' 'he i'i" =%& "' %ll"=e.

44

I#3$#CTIO# TO &%E'E#T B%EAC" OF CO#T%ACT

I'i" '" $reve' bre%h "> "'r%' "r '" "rer &$ei>i $er>"r#%e ">

'he "'r%' %re ;eer%ll "' %ll"=e.45here 'he %;ree#e' $r"vie >"r ree=%l

" #'%ll %;ree 'er#&, 'he 'er#i%'i" "r "He?'e&i" "> 'he liee %>'er 'he

e?$ir "> 'he %;ree#e' =%& "' % #%''er >"r %rbi'r%'i". /he "l re#e =%& '"

&ee< % "rer "> &$ei>i $er>"r#%e >"r ree=%l.46

PART FAPPOINTMENT OF RECEIVER -S!(. 9 ##/ 3/0

A reeiver % be %$$"i'e i %ll %&e& i =hih i' ="l %$$e%r '" 'he "r'

'" be &' % "veie' '" " &". A reeiver #% be %$$"i'e $ri"r '" 'he

"##ee#e' "> le;%l $r"eei;& % %l&" $ri"r '" 'he "##ee#e' "> %rbi'r%l

$r"eei;&

!e'i" 9 "> 'he Arbi'r%'i" % C"ili%'i", A', 1996, "l e%l& =i'h 'he

i'eri# #e%&re b ie "r'. bvi"&l, i' i& "' =i'hi 'he &"$e "> 'he &e'i" '"

i@ire i'" 'he l%i# % 'he "'erl%i# #%e b b"'h 'he $%r'ie& i re;%r '" 'he

&'" "> 'he %r'ile& be" =h%' h%& bee %#i''e b 'he re&$"e'. Al'h";h

'he $e'i'i"er h% >%ile '" #% % reeiver "> 'he

%r'ile& i $"&&e&&i" "> 'he re&$"e', &'ill 'he ee be $r"'e'e bei;

44?ashmesh Academy rust v. V(( Consttruction >orks !( .td( (1988) 1 Arb LR 172 +. /he "r'&h"=e i'& %;reee#' =i'h 'he rlli; "> 'he All%h%b% +i;h C"r' i Sunderlal >e' 'h%' % $r"eei; er !.20, 1940 A' (ele'e >r"# 'he 1996 A')=%& % $%r' "> %rbi'r%'i" $r"eei;&.

45Vinit Manchandra v. 0ishi Co4o& -rou& >%ir

46Indian ourism ?e'elo&ment Cor&n( .td(v.Air&ort Authority of India (1997) 2 Arb LR 609, 620(Delhi).


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$%r'er&hi$ $r"$er'. /he re&$"e' =%&, 'here>"re, re&'r%ie >r"# &elli;,

'r%&>erri; "r i % "'her =% i&$"&i; 'he# ">> $ei; i&$'e be'=ee 'he

$%r'ie& i re;%r '" 'he#.47

Uer !e'i" 41(b), 1940 A' %& "= i !e. 9(ii)() "> 1996 A'-, 'he "r'

h% $"=er '" $%&& % i'eri# "rer "> i'i" "r %$$"i'#e' "> reeiver. here

% &i' =%& $ei; be>"re 'he "r' 'he "r' h% $"=er '" %$$"i' % reeiver "r

i&&e % i'eri# i'i" %$%r' >r"# 'he &e'i".48/he $"=er "> %$$"i'i; reeiver

"l be e?eri&e eve i % %&e =here re>eree& '" %rbi'r%'i" h% bee #%e

=i'h"' 'he i'erve'i" "> 'he "r' % " $r"eei;& =ere $ei; i % "r'.

/he "r' &%i 'h%' i' ="l "' &ee# $r"$er 'h%' 'he "r' %>'er bei; &%'i&>ie "

!rima facie eviee &h"l be $"=erle&& i 'he #%''er "> $re&erv%'i" "r &%>e' ">

'he $r"$er' i i&$'e. /he "r' "l &i#l'%e"&l %$$"i' % reeiver % &'%

'he &i' er !e'i" 34, 1940 A' !. 8 "> 'he 1996 A'-. 49

/he >%' 'h%' 'he %rbi'r%'"r h% " $"=er '" ;r%' % i'i" =%& % #%''er

=hih 'he "r' "l '%"r re>eree& '" %rbi'r%'i" % i'eri# i'i" >"r

#%i'e%e "> status uo( /he "r' &%i 'h%' &h i'i" "l "' be %ll"=e

'" hi#. /he e>>e' "> &h % i'i" ="l be 'h%' 'he "=er ="l be $reve'e

>r"# h%i; "ver 'he l"' '" 'he &e&&>l bier, 'he "'r%'"r ="l e" @ie'

$"&&e&&i" =i'h"' h%vi; '" $% %'hi;, 'h";h hi& $eri" h% e?$ire.51

PART GANY OTHER MEASURE 41UST AND CONVENIENT5 -S. 9 ##/ !/0

47N%r%i !%h%i A;%r=%l v. !%'"&h R%i, (I 997) 2 Arb LR 322 (Delhi).

48Sharma Ice 5actory '( 3e2el Ice 5actory,AIR 1975 25( I' =%& hel i, -oodudll India .td '( onuConstruction (1996) 2 Arb LR 602 (Delhi) %$$"i'#e' "> reeiver i % #%''er "> hireH$rh%&e%;ree#e' >"r &eiKre "> $r"$er' =%& re>&e =here 'he $%r'ie& h% revi&e 'he 'er#& "> 'he "ri;i%l%;ree#e' % 'he ri;h' "> &eiKre i "' e?i&'

49ii v. R%""r"i, (1892) 1 Ch 633.

50>illesford '( >atson, (1873) LR 8 Ch A$$ 473.51)nion of India v.ishan Chand, (1990) 2 Arb LR 264 Delhi.


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/he ="r& &' % "veie' e#$l"e i &bHl%&e (ii)(e) "> &e'i" 9

"> 'he A', h%ve bee '%r"# &bH&e'i" (8) "> !e'i" 25 "> 'he i%'re A'

1873. /he ="r& i 'h%' A' %re &' "r "veie'B b' 'he h%ve bee "&'re

'" #e% &' % "veie' /he ="r& &' % "veie' " "' #e% 'h%' 'he

C"r' i& '" $%&& "rer& i re&$e' "> i'eri# #e%&re& &i#$l be%&e 'he "r'

'hi"r 'he $reve'i" "> 'he ir %"ri; '" le;%l $rii$le&.

/he "rer i& i&re'i"%r % 'he i&re'i" #&' be e?eri&e i %"r%e =i'h

'he $rii$le& " =hih 'he ii%l i&re'i" i& e?eri&e. /he&e ="r& =ere "'

'he $%r' "> &e'i" 41 "> 'he Arbi'r%'i" A', 1940. /here>"re, % =ier i&re'i" h%&

bee ;ive '" 'he "r' er &e'i" 9 "> 'he A' '" $%&& i'eri# "rer&.B52

/here =%& % i&$'e be'=ee 'he $%r'ie& '" % "i' ve're %b"' 'he

%$$"i'#e' "> 'he #%%;i; ire'"r "> 'heir "#$%. /he %$$"i'#e' =%& ;"i;

'" be ">ir#e %' 'he e?' #ee'i; "> 'he &h%reh"ler&. e $%r' '" 'he "i'

ve're "'ee 'h%' 'hi& #ee'i; &h"l be &'%e be%&e "e 'he

%$$"i'#e' =%& ">ir#e i' ="l be"#e i#$e%h%ble. /he $%r' h% %lre%

re>erre 'he #%''er >"r ei&i" b %rbi'r%'i" i % >"rei; "'r. /he "r' i "'

"&ier i' ee&&%r '" &'% 'he #ee'i; be%&e eve i> 'he %$$"i'#e' =%&

">ir#e, i' ="l be &be' '" 'he ei&i" "> 'he %rbi'r%'"r i 'he >"rei;

"'r.53

here % "#$% =%& evel"$i; 'he >%ili' "> elll%r #"bile 'ele$h"e

&ervie i % $%r'il%r %re%, 'he "r' i "' re&'r%i, %' 'he i&'%e "> 'he

"#$%, 'he Ui" "> Ii% >r"# i'er>eri; =i'h 'he $r"e' " 'he ;r" 'h%' 'he

%re% bel";e '" 'he %b /ele"# Cirle. /he #ere >%' "> h;e ive&'#e' i

"' 'r 'he b%l%e "> "veiee i >%v"r "> 'he "#$%. /he "r' "l "'

eie i &h % %$$li%'i" %& '" =hih 'ele"# e're 'he %re% i @e&'i"

bel";e.54

(I%ECTIO# FO% &A+ME#T

52State of 0a3asthan '( harat Construction Co4, 1998 3 RA 7 %' $. 11. /he "r' re>&e i 'hi& %&e'" i'er>ere i '=" "rer&, %#el, 'h%' 'he !'%'e &h%ll =i'hh"l 'he &eri' e$"&i' b' &h%ll "'=i'hh"l $%#e' "> ri; bill&.

53Su/uki Motor Cor&(v. )nion of India(1997) 2 Arb LR 477 (Delhi).54*&"'el M"bile C"##i%'i"& L'. 5! Ui" "> Ii%, (IM) 3 RA 307 Delhi (1998) 2 Arb LR 384.


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A i'i" %;%i&' 'he Ui" "> Ii% ire'i; i' "' '" =i'hh"l % %#"'

e '" 'he "'r%'"r er &"#e "'her $ei; bill& %#"'& '" % ire'i" '" #% !e'i" 41(b)

"> 'he Arbi'r%'i" A', 1940.55U!+A M*+RA &%iH

o arri'e at this conclusion su&&ort can be had from the obser'ations of the

Su&reme Court in the case of 'he Arbi'r%'i" A', 1940. Ch%e& "> %$$e%l h% '" be $r"be

er !. 39 "> 'he 1940 A'. :' 'here =%& " &h $r"vi&i" er 'h%' &e'i". 58

/he "r' "'e % ei&i" "> i'& "= :eh59=hih ree'e 'he %r;#e' 'h%'

"rer& $%&&e b % &i;le ;e %re "rer& er CC % 'h%' ="l #% "' %ll"=e.

57Vashde' heroomal !amnani '( M( i&in umar,AIR 1987 :"# 226.

587(C( hall v. 0(C( halla (1990) 2 Arb.L.. Delhi.

59 Subhash Chander akkar '( ?( S( I( ?( C(, (1990) 2 DL/ 21.


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%$$e%l #%i'%i%ble. :eh "b&erve 'h%' =he 'he "r' $%&&e& % "rer er

39 "> CC ri; 'he $ee "> % $r"eei;& "##ee er % "> 'he

$r"vi&i"& "> 'he %rbi'r%'i" A', 1940, 'he "r' =%& i e>>e' e?eri&i; ri&i'i"

er !. 41 "> ' e Arbi'r%'i" A' 1940 re% =i'h 'he !e" !hele, "> 'h%' A'.

!e'i" 39 "> 'he Arbi'r%'i" A' 1940 le%rl &$ei>ie =h%' =ere %$$e%l%ble "rer&.

A "rer $%&&e er !. 41 "> 'he Arbi'r%'i" A', 1940 re% =i'h 'he !e"

!hele % rer 29, Rle& I % 2, CC =%& "' % %$$e%l %ble "rer.60

Revi&i" =%& %l&" "' #%i'%i%ble be%&e i'eri# "rer& i "' >i%ll %i%'e

"r i&$"&e "> % l%i# "r i&$'e be'=ee 'he $%r'ie&.

/he Arbi'r%'i" % C"ili%'i" A', 1996 e?$re&&l $r"vie& i !.37 'h%'

i'eri# "rer& er !. 9 &h%ll be %$$e%l %ble.

60/he :eh relie " an2ari Ial 0adhey(Mohan v. !un3ab State Co4o& Su&&ly and Mkt" 5edn( .td.,AIR 1983 Delhi 402.


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Chapter I#: Interim Orders in Forei%n Ar&itration

&A%T A: T"E SC"EME $#(E% T"E I#(IA# ACT

I' i& % i'ere&'i; $r"$"&i'i" '" e?%#ie =he'her 'he Ii% C"r'& h%ve 'he

$"=er er 'he Arbi'r%'i" C"ili%'i" A', 1996 '" "rer i'eri# #e%&re& i % %&e

=here 'he $l%e "> %rbi'r%'i" i& "'&ie Ii%. /he %&=er i& "> ;re%' i#$"r'%e '"

Ii% b&ie&e, =h" i 'he =%li'i; ;#e'& ">

v%ri"& +i;h C"r'&.61 /hi& %r'ile $r"$"&e& '" e?%#ie &h ei&i"& i 'he

b% 'he UNCI/RAL M"el L%= % 'he L%= i v%ri"& "'her "'rie&. Gir&',

'h";h, i' ="l be ee&&%r '" re>er '" 'he relev%' $r"vi&i"& i 'he Arbi'r%'i"

C"ili%'i" A', 1996.

Uer 'he *;li&h L%= % %$$li%'i" >"r % &'% "> le;%l $r"eei;& i& #%e

er &e'i" 9 "> 'he *;li&h Arbi'r%'i" A' 1996, =h"&e $r"vi&i"& %re

#%%'"r.62!e'i" 9 =ill %$$l eve i> 'he &e%' "> 'he %rbi'r%'i" i& %br"% "r "

&e%' h%& bee e&i;%'e "r e'er#ie.63

A' 'hi& 're, %''e'i" &h"l be %ver'e '" !e'i" 2, "'%ie i %r' I "> 'he A'

% $%r'il%rl '" &bH&e'i" 1(>) 'h%' e>ie& i'er%'i"%l "##eri%l %rbi'r%'i"J %&

% %rbi'r%'i" rel%'i; '" i&$'e& %ri&i; "' "> le;%l rel%'i"&hi$&, =he'her "'r%'%l,

"r "', "&iere %& er 'he l%= i >"re i Ii% =he %' 2!%& +n! + ! 8%"#!& #&

61/h";h 'he i&&e h%& "= bee &e''le b 'he !$re#e C"r', e' 'he $r"$"&i'i"& %re iee ="r'he?%#ii;.

62 See section $ if the Arbitration Act 1996 and Sch( 1 to the Act for the mandatory &ro'isions(

63 Arbi'r%'i" A' 1996, &.2(2)


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an indi'idual 2ho is a national of, or habitually resident, any country other than

IndiaD or

a body cor&orate 2hich is incor&orated in any country other than IndiaD or

a com&any or an association or a body of indi'iduals 2hose central mana"ement

and control is eercised in any country other than IndiaD or

the -o'ernment of a forei"n country(

!e'i" 2(5) e>ie& 'he &"$e "> %r' I "> 'he A'. I vie= "> 'he $%r'il%r relev%e ">

!e'i"& 2(2) % 2(5), 'he %re &e' "' bel"= H

# *1# his !art shall a&&ly 2here the &lace of arbitration is in India.

# *B Sub3ect to the &ro'isions of sub4section *$, and sa'e in so far as is

other2ise &ro'ided by any la2 for the time bein" in force or in any a"reement in

force bet2een India and any other country or countries, this !art shall a&&ly to all

arbitrations and to all &roceedin"s relatin" thereto.

!e'i" 2(7), =hih i& %l&" relev%', re%& %& >"ll"=&

K#* An arbitral a2ard made under this &art shall be considered as a

domestic a2ard(K

I' #% be "'ie 'h%' !e'i" 9 'i'le I'eri# Me%&re& e'. b C"r' >i& $l%e

i %r' I "> 'he A'. N" &h $r"vi&i" i& '" be >" i % "'her %r' "> 'he A'. /he

@e&'i", =hih, 'here>"re, %ri&e&, i& =he'her "r "' %r' I "> 'he A' %$$lie& =here 'he

$l%e "> %rbi'r%'i" i& "'&ie Ii%. /he %&=er '" &h % @e&'i" ="l, i 'he

l'i#%'e %%l&i&, e$e " 'he 're "&'r'i" "> 'he $r"vi&i"& e?'r%'e %b"ve.

+"=ever, be>"re "i; &", i' i& i&'r'ive '" l""< %' h"= 'he UNCI/RAL M"el L%=, %&

%l&" "'her "'rie&, h%ve '%


36/42


Khe &ro'isions of this .a2, ece&t articles +, 9, %B and %6, a&&ly only if the&lace of arbitration is in the territory of this StateK(

Ar'ile 9, =hih i& re>erre '" i Ar'ile 1.2, i& %l&" &e' "' bel"=

KArbitration a"reement and interim measures by court 4 It is not incom&atible 2ithan arbitration a"reement for a &arty to reuest, before or durin" arbitral

&roceedin"s, from a court an interim measures of &rotection and for a court to"rant such measures(

A& % #%''er "> hi&'"r, i' i& i'ere&'i; '" "'e 'h%' Ar'ile 1.2 i "' >i $l%e i 'he r%>'

M"el L%=.64 /here =%& =ie &$$"r' >"r 'he &"H%lle &'ri' 'erri'"ri%l ri'eri"J,

%"ri; '" =hih 'he L%= ="l %$$l =here 'he $l%e "> %rbi'r%'i" =%& i 'h%'

!'%'e.65*ve =hile &" eii;, 'he C"##i&&i" =%& le%r 'h%' 'he C"r' >'i"&

evi&%;e i Ar'ile& 8, 9, 35 % 36 =ere '" be e'r&'e '" 'he C"r'& "> 'he $%r'il%r

!'%'e %"$'i; 'he M"el L%= irre&$e'ive "> =here 'he $l%e "> %rbi'r%'i" =%& l"%'e

"r er =hih l%= 'he %rbi'r%'i" =%& '" be "'e. I vie= "> 'hi&, Ar'ile 1(2) =%&%"$'e i i'& >i%l &h%$e.

/h&, er 'he M"el L%=, iH vie= "> 'he &$ei>i e?e$'i"& '" 'he $rii$le "> &'ri'

'erri'"ri%li', % C"r' ="l h%ve 'he $"=er er Ar'ile 9 '" ;ive i'eri# ire'i"&,

irre&$e'ive "> 'he $l%e "> %rbi'r%'i".

64/he re$"r' "> UNCI/RAL " 'he %"$'i" "> 'he M"el L%= ($%r%;r%$h& 72 '" 81 "> 'he Re$"r') i& &e' "'i /he Arbi'r%'i" % C"ili%'i" A', 1996 H A C"##e'%r b . Ch%r%&e


37/42


&A%T C:T"E &OSITIO# I# E#*LIS" LA6

I *;li&h L%=, $ri"r '" 'he Arbi'r%'i" A', 19967 'he +"&e "> L"r& h% hel

'h%' % %rbi'r%'i" hel %br"% % ;"vere b &"#e "'her ri%l l%= =%& "#$le'el

"'&ie 'he le;i&l%'i" (Channel unnel -rou& .td. v. alfour eatty Construction .td. ,

1993 1 All *R 664 %' 683). +"=ever, l%'er, !e'i" 2 =%& e%'e, %l"; 'he lie& ">

Ar'ile 1(12) "> 'he M"el L%= % i' re%& %& bel"=

#( Sco&e of a&&lication of &ro'isions

(1) he &ro'ision of this &art a&&lies 2here the seat of the arbitration is in

:n"land and >ales or 7orthern Ireland(

(2) he follo2in" sections a&&ly e'en if the seat of the arbitration is outside

:n"land and >ales or 7orthern Ireland or no seat has been desi"nated or

determined

(3) sections 9 to 11 *stay of le"al &roceedin"s, =c(, and

(4) section 66 *enforcement or arbitral a2ards(

/he $"=er& ">erre b 'he >"ll"=i; &e'i"& %$$l eve i> 'he &e%' "> 'he

%rbi'r%'i" i& "'&ie *;l% % %le& "r N"r'her Irel% "r " &e%' h%& bee

e&i;%'e "r e'er#ie. :' 'he "r' #% re>&e '" e?eri&e % &h $"=er i>, i 'he

"$ii" "> 'he "r', 'he >%' 'h%' 'he &e%' "> 'he %rbi'r%'i" i& "'&ie *;l% % %le&

"r N"r'her Irel%, "r 'h%' =he e&i;%'e "r e'er#ie 'he &e%' i& li"r I'eri# $r"'e'i" % "'her

relie> er &e'i" 8 % 9 "> 'he 1996 A'. /he re&$"e'& '""< % $reli#i%r

"be'i" " 'he @e&'i" "> #%i'%i%bili' "> 'he %$$li%'i" i vie= "> !e'i" 2(2) ">

'he A', #e'i"e %b"ve./he A$$li%'& &b#i''e 'h%' 'he C"r' h% ri&i'i" '"

66AIR 1997 C%l 168.


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38/42


he%r 'he #%''er, $l%i; $%r'il%r e#$h%&i& " !e'i" 2(5) "> 'he A'. I re$l, 'he

Re&$"e'& r;e 'h%' i> &h % i'er$re'%'i" =ere '" be %e$'e, i' ="l reer

&e'i" 2(2) "'i"&e. Re>eree =%& #%e '" 'he UNCI/RAL M"el L%= '" &h"= 'h%' 'he

le;i&l%'re h% 'h";h' i' >i' '" evi%'e 'here >r"# % e?le !e'i"& 8 % 9 >r"#

"$er%'i" "> 'he %r' I "> 'he A'. /he Le%re ;e hel 'h%' 'he i'er$re'%'i" %&

r;e b 'he A$$li%'& ="l reer &e'i" 2(2) "'i"&e % i' =%& =ell &e''le 'h%' 'he

C"r'& #&' %l=%& $ree 'h%' 'he le;i&l%'re i i'& =i&"# i'ee 'h%' ever $%r' ">

&'%''e &h"l be ;ive e>>e'. /he Le%re !i;le ;e %l&" "'ie 'h%' 'he ;l"b%l

&"$e "> 'he relev%' $r"vi&i" "> 'he UNCI/RAL M"el L%= =%& "&i"&l "#i''e

>r"# 'he 1996 A'. I' =%& hel 'h%' evi%'i" >r"# 'he M"el L%= reve%le 'he i'e'i"

"> 'he le;i&l%'re '" li#i' 'he &"$e "> %r' I "> 'he A' '" %rbi'r%'i" $r"eei;& =here

'he $l%e "> %rbi'r%'i" =%& i Ii%. I' =%&, 'here>"re, hel 'h%' %& 'he $l%e "> %rbi'r%'i"

=%& %#i''el i L"", 'he %$$li%'i" =%& "' #%i'%i%ble i 'he C%l''% +i;h

C"r'.

A &i#il%r "l&i" =%& re%he b % Divi&i" :eh "> 'he C%l''% +i;h C"r'

i 'i'le e'enter A"ro .td. v. Sea"ram Co( .td6. /h%' #%''er "ere % i&$'e

be'=ee 'he $%r'ie& %ri&i; "' "> % "i'Hve're %;ree#e'. /he C"r' >r%#e 'hree

i&&e&. I&&e N".3 rel%'e '" 'he $"=er "> 'he C"r' '" $%&& i'eri# "rer&. /he C"r'

"b&erve 'h%' $"=er '" $%&& i i'eri# "rer i "e'i" =i'h % &$ei%l A' #&' be

erive >r"# 'h%' &'%''e i'&el>. I' =%& hel 'h%' 'here =%& " $r"vi&i" i %r' II, h%$'er

I "r % "'her $"r'i" "> 'he 1996 A' %$$li%ble '" >"rei; %rbi'r%'i" er 'he Ne= F"r 'he C"r'& i %rbi'r%l $r"eei;&B.. /he reli%e b

eve'er " Ar'ile 8(5) "> 'he I'er%'i"%l Ch%#ber "> C"##ere Rle& =%& hel '"

beH #i&$l%e, &ie &h rle& h% " &'%''"r >"re %, i % %&e, ri&i'i"

"l "' be ">erre b "&e'. I 'he ir#&'%e&, 'he C"r' =%& "> 'he vie= 'h%'i' i "' h%ve 'he $"=er '" $%&& % i'eri# "rer i %&e& "> >"rei; %rbi'r%'i".

A "'%ble ei&i" "> 'he Delhi +i;h C"r' 'h%' =%& l%'er "verrle b 'he !$re#e

C"r', 'he l%''er ei&i" bei; 'he rre' ri; vie=, i& ever'hele&& i&&&e here.

67AIR 1997 C%l 200.


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I Marriott InternationalInc( = @rs(v.Ansal "r Arbi'r%'i" i M%l%&i%, &e'i" 9 ">

'he A' h% " %$$li%bili' % 'he $e'i'i" "> 'he %$%$li%' 'here>"re =%& 'here>"re, "'

#%i'%i%ble.

/hi& ei&i" =%& $hel b 'he !$re#e C"r' i hatia International v. ulk radin"

S(A( and Anr(69, =herei 'he !C hel 'h%' i %&e "> I'er%'i"%l "##eri%l %rbi'r%'i" 70

% "&'er "> ri&i'i" %"' be i#$lie b' e?$re&&e % 'h%' 'he r"vi&i"& "> %r' I

"> 'he Arbi'r%'i" % C"ili%'i" A', 1996 %re %$$li%ble %l&" '" i'er%'i"%l

"##eri%l %rbi'r%'i" =hih '% 'he ICC

Rle& $er#i'& $%r'ie& '" %$$l '" % "#$e'e' ii%l %'h"ri' >"r % i'eri# %

"&erv%'"r #e%&re& % 'here>"re i &h %&e& % %$$li%'i" % be #%e er

!e'i" 9 "> 'he &%i A'.

68MANUD*00132000.

69MANU!C01852002.

70/he &e%' "> %rbi'r%'i" i 'he $re&e' %&e =%& '" be eie i %"r%e =i'h 'he rle& "> I'er%'i"%lCh%#ber "> C"##ere % %ri& =%& >i%ll %;ree $" 'he %r'ie& %& 'he &e%'.


!a"e %9 of $#

39
http://fncitation%28%27manu/DE/0013/2000');http://fncitation%28%27manu/DE/0013/2000');http://fncitation%28%27manu/DE/0013/2000');


40/42


CHA"TE! #: CONCLSION

/"=%r& 'he e i' % be &r#i&e 'h%' 'he $"=er& "> 'he Ii% C"r'& =i'h

re;%r '" $r"vii; i'eri# relie> er !e'i" 9 "> 'he A' %re >%irl =ie % =ellH

e>ie. /he re"r&e '" C"r'& >"r "b'%ii; i'eri# i'i"& "e& "' i % =%

er#ie 'he %rbi'r%'i" $r"vi&i" "'%ie i "'r%'%l %;ree#e'&.

he decision of the Su&reme Court in :h%'i% I'er%'i"%l case has alsobeen uite relie'in" as it takes care of a lot of ei"encies that mi"ht ha'e madeim&ossible for an a""rie'ed &arty to obtain interim relief( Mentioned belo2 are someof the circumstances that mi"ht ha'e created confoundin" situations(

/he %b&ee "> % i'eri# $r"'e'i" i %&e& "> >"rei; %rbi'r%'i" ;ive& ri&e '"

&evere i&'ie >"r e?%#$le, &h $r"vi&i"& "#e i'" $l% %' 'he ii'i%l &'%;e&

"> % %rbi'r%'i" (e.;. % M%rev% i'i" '" $r"'e' %&&e'&). G"r i&'%e, i' #%

&"#e'i#e& '%e= #"'h& er ICC Rle& >"r %rbi'r%'"r& '" e'er i'" 'he

=hih "> "r&e, 'he %rbi'r%'"r& #% h%ve $"=er& '" $%&& i'eri# ire'i"&. :

&h 'i#e i' #% be '"" l%'e >"r 'he $%r' =h" &ee %rbi'r%'i" i& =i'hi Ii%. I' i& >"r 'he&e re%&"& 'h%' 'he #"el

l%= $r"vie >"r i'eri# $r"'e'i" irre&$e'ive "> 'he vee. /hi& i& %l&" 'he

$"&i'i" i *;li&h L%=.

/he "H%$$li%bili' "> %r' I "> 'he 1996 A' '" >"rei; %rbi'r%'i" ;ive& ri&e '"

"'her $i@%' &i'%'i"&. %r' II "> 'he A' "l e%l& =i'h Cer'%i G"rei;

A=%r&B i.e. Ne= F"r< % eev% C"ve'i" %=%r&. I' i& le%r =h%'

h%$$e& '" %rbi'r%'i" $r"eei;& i >"rei; "'rie& "' $%r' '" 'h"&e

"ve'i"&.

I &h % %&e, % l%i'i>> #% >ile % !i' r%i&i; % i&$'e, =hih i& "vere b %

%rbi'r%'i" l%&e (=hih &$ei>ie& 'he $l%e "> %rbi'r%'i" %& bei; i &h %

>"rei; "'r). A& #%''er& &'%, 'here i& " $r"vi&i" i 'he Arbi'r%'i" A'

=hereb 'he C"r' % ire' 'he $%r'ie& '" re>er 'he #%''er '" %rbi'r%'i". !e'i"

8 ="l be %v%il%ble, bei; re&'ri'e '" "#e&'i %rbi'r%'i", =here%&

!e'i"& 45 % 54 ="l be re&'ri'e '" "ve'i" "'rie&.


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41/42


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BIBLIO'!A"H(

:%h%=%', R.!, .a2 of Arbitration and Conciliation, 3r *.,%h=% % C".,

A;r%, 1997.

C%rb"e%, /.*, 0esol'in" ransnational ?is&utes hrou"h International

Arbitration, Uiver&i' re&& "> Eir;ii%, Ch%rl"''e&ville, 1984.

D%vi, Ree, Arbitration in International rade, l=er bli%'i"&,

Ne'herl%&, 1985.

Le=, .D.M,A&&licable .a2 in International Commercial Arbitration, ee%%

b. I., Ne= F"rer, A. % M. +'er, .a2 and !ractice in International Commercial

Arbitration, 2 *., L"", 1991.

interim relief arbitration

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