Law courts all over the world play an important role in the smooth and expeditious conduct of arbitration proceedings and in the implementation of arbitration awards. It is interesting and useful to know how courts act and react when parties approach them for different reliefs during arbitration proceedings and after the award 

ARBITRATION AND CONCILIATION
ACT, 1996

Section 9 - Interim reliefby court - Application seeking injunction to restrain arbitrator from proceeding with arbitration by challenging his appointment - Where the applicant has given his consent under the arbitration agreement for the appointment of the named arbitrator as sole arbitrator and for the venue of arbitration proceedings, an application seeking injunction to restrain the arbitrator from proceeding with the arbitration by challenging his appointment as arbitrator cannot be sustained. The jurisdiction of the High Court under section 9 is only for passing interim order to safeguard and protect the interest of the parties and not to challenge the appointment of the arbitrator.

Section 11 - Appointment of arbitrator - Court's jurisdiction to decide petition - Where the arbitration agreement has itself named the arbitrator, the court will have no jurisdiction to decide the petition under section 11 for appointment of another arbitrator.

KAMAL SOLVENT
v.

MANIPAL FINANCE CORPORATION LTD.
[2002] 1 CLA-BL Supp. (Snr.) 1 (Mad.)

Section 11 - Appointment of arbitrator - Maintainability of petition under sub-section(6) - Where the dispute between the parties stands fully and finally settled, and there is no arbitrable dispute which could be referred to arbitrator, the petition under sub-section(6) of section 11 will fail, and will be liable to be dismissed.
 

RAJDHANI DAL MILL
v.
M M T C LTD.
[2002] 1 CLA-BL Supp. (Snr.) 1 (Delhi)

Section 31 - Arbitral award - Interest on award - Inasmuch as clause (b) of subsection(7) of section 31 provideds for payments of interest at 18 per cent annum from the date of the award to the date of the payment, unless there is a contrary direction in the award, the provision is of salutary nature intended to deter parties from raising frivolous disputes. The provision operates per proprio vigore.

Section 34 - Setting aside of arbitral award - Scope of challenge to award - Unlike the 1940 Act, the challenge to the arbitral award under the 1996 Act has been reduced to the barest minimum. Unless it specifically subsumes under any ground in sub-section (2) of section 34, it will not lie. No judicial authority shall intervene in it. The correctness or otherwise of a finding of fact by the arbitrator cannot be challenged, and the arbitrator being a consensual forum chosen by the parties, they must abide by it, whatever may be his judgment, right or wrong.

Section 34 - Setting aside of arbitral award - Conflict with public policy - A wrong decision or alleged violation of substantive law in the award does not amount to violation of public policy of India in terms of sub-clause (ii) of clause (b) of sub-section (2) of section 34.

VIJAYA BANK
v.

MAKER DEVELOPMENT SERVICES (P.) LTD.

[2002] 1 CLA-BL Supp. (Snr.) 2 (Bom.)