Answer By law4u team
Yes, a party can seek interim relief from the court during arbitration proceedings in India. The Arbitration and Conciliation Act, 1996 (the "Act") provides for such relief to ensure that the interests of the parties are protected during the arbitration process. Here’s a detailed explanation of how interim relief can be sought: Provisions for Interim Relief 1. Section 9 of the Arbitration and Conciliation Act, 1996 Before or During Arbitration Proceedings: A party can apply to a court for interim measures before the commencement of the arbitration or during the arbitration proceedings. Post-Award but Before Enforcement: Interim relief can also be sought after the arbitration award has been made but before it is enforced in accordance with Section 36. Types of Interim Measures: The court can grant interim measures for: Preservation, interim custody, or sale of goods that are the subject matter of the arbitration agreement. Securing the amount in dispute in the arbitration. Detention, preservation, or inspection of any property or thing which is the subject matter of the dispute in arbitration. Interim injunction or appointment of a receiver. Such other interim measures of protection as may appear to the court to be just and convenient. 2. Section 17 of the Arbitration and Conciliation Act, 1996 Interim Measures by Arbitral Tribunal: During the course of arbitration proceedings, a party can also request the arbitral tribunal to order interim measures. Powers of the Arbitral Tribunal: The tribunal has the power to grant interim measures which are similar to those that a court can provide under Section 9, including: Preservation, interim custody, or sale of goods. Securing the amount in dispute. Detention, preservation, or inspection of property. Interim injunctions or appointment of a receiver. Any other interim measures deemed necessary. Procedure for Seeking Interim Relief Before the Court (Section 9): Filing an Application: The party seeking interim relief must file an application before the competent court, which is usually the principal civil court of original jurisdiction (District Court) or the High Court if it has original jurisdiction over the subject matter of the arbitration. Evidence and Hearing: The court will require the applicant to provide evidence supporting the necessity of interim measures. The court will then hold hearings to assess the application. Court Order: If the court is satisfied that the interim relief is necessary to protect the interests of the parties or the subject matter of the dispute, it will issue an appropriate order. Before the Arbitral Tribunal (Section 17): Filing an Application: The party seeking interim relief must file an application before the arbitral tribunal detailing the necessity of such measures. Tribunal’s Consideration: The arbitral tribunal will review the application and the evidence presented by both parties. It will consider the urgency and necessity of the requested interim measures. Tribunal’s Order: If the tribunal finds the interim measures justified, it will issue an order for the necessary interim relief. Judicial Approach and Precedents Case Law Examples: Sundaram Finance Ltd. v. NEPC India Ltd. (1999): The Supreme Court held that Section 9 can be invoked even before the commencement of arbitration proceedings, and the party need not wait until the dispute is formally referred to arbitration. M/s. Firm Ashok Traders & Anr. v. Gurumukh Das Saluja & Ors. (2004): The Supreme Court emphasized that Section 9 is a substantive provision and the courts have the jurisdiction to grant interim measures to protect the interests of the parties. Practical Considerations: Courts and tribunals typically require the applicant to demonstrate a prima facie case, balance of convenience, and the potential for irreparable harm if the interim relief is not granted. Interim relief measures are intended to preserve the status quo and prevent any action that might render the arbitration proceedings or the arbitral award ineffective. Conclusion Interim relief during arbitration proceedings in India is a crucial mechanism to ensure that the interests of the parties are protected. Both the courts and arbitral tribunals have the authority to grant such relief under Sections 9 and 17 of the Arbitration and Conciliation Act, 1996. These provisions allow for various types of interim measures, including injunctions, securing the disputed amount, and preservation of the subject matter of the dispute. The procedure involves filing an application and providing evidence to demonstrate the necessity of the requested interim relief.
