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

An award in favour of Desai Pharma was silent on the costs of the arbitration, and a question about those costs now arises between the parties. Which statement is correct under Section 39(4)?

Under Section 39(4), where a question arises about costs of the arbitration and the arbitral award contains no sufficient provision concerning them, the Court may make such orders respecting the costs as it thinks fit.

  1. AThe Court may make such orders as it thinks fit respecting the costs where the award contains no sufficient provision concerning themCorrect
  2. BThe Court must dismiss any dispute on costs because the award is final
  3. CThe arbitrator alone may reopen costs by a fresh award without any limit
  4. DThe costs must be borne equally by the parties by operation of law

Explanation

Section 39(4) empowers the Court to make such orders as it thinks fit respecting costs where any question arises and the award contains no sufficient provision on them. Equal sharing is not a rule under this sub-section, and the Court is not barred merely because the award is silent.

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