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CS Professional · Arbitration, Mediation and Conciliation · Arbitration Procedure, Appointment of an Arbitrator and Other Aspects

A tribunal in an arbitration between Nirmal Pharma and Gupta Distributors passes an interim order under Section 17 directing Gupta to deposit Rs 40 lakh to secure the amount in dispute. Gupta does not comply. What is the legal position regarding enforcement?

The order is treated as an order of the Court for all purposes and is enforceable under the Code of Civil Procedure, 1908, as if the Court had passed it, subject to any orders in an appeal under section 37. It is not merely advisory.

  1. AThe order is only advisory and cannot be enforced
  2. BIt can be enforced only after the final award is made
  3. CIt is deemed an order of the Court and is enforceable under the Code of Civil Procedure, 1908, subject to any orders in an appeal under section 37Correct
  4. DIt can be enforced only through criminal prosecution of Gupta

Explanation

Section 17(2) says that, subject to orders passed in an appeal under section 37, any tribunal order under Section 17 is deemed an order of the Court for all purposes and is enforceable under the Code of Civil Procedure, 1908 as if it were a Court order. Waiting for the award is not required.

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