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CS Professional · Arbitration, Mediation and Conciliation · Preparation and Execution of Arbitral Award

A tribunal refuses to deliver the award to Mehta Textiles unless it pays Rs 8,00,000 demanded as costs. Mehta Textiles applies to the Court under Section 39(2). The Court finds Rs 5,00,000 reasonable. What is the course the Court may follow?

The Court may order the award delivered once the applicant pays the demanded Rs 8,00,000 into Court. After inquiry, it pays the tribunal the reasonable sum of Rs 5,00,000 and refunds the balance of Rs 3,00,000 to the applicant, as provided in Section 39(2).

  1. AOrder delivery of the award on payment of Rs 8,00,000 into Court, pay the tribunal Rs 5,00,000 as reasonable, and refund the balance of Rs 3,00,000 to Mehta TextilesCorrect
  2. BOrder the tribunal to deliver the award without any payment into Court
  3. CDirect Mehta Textiles to pay Rs 8,00,000 directly to the tribunal and close the matter
  4. DOrder delivery on payment of Rs 5,00,000 into Court, with the tribunal keeping any excess demanded

Explanation

Under Section 39(2), the Court may order delivery of the award to the applicant on payment into Court of the costs demanded. After such inquiry as it thinks fit, it orders a reasonable sum paid to the tribunal and the balance refunded to the applicant. Rs 8,00,000 less Rs 5,00,000 gives Rs 3,00,000 refund.

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