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

Nair Pharma and Delta Logistics are in arbitration over a Rs 90 lakh claim. After two hearings, the sole arbitrator makes an award that decides only the liability issue and leaves quantum for later. The parties' agreement is silent on interim awards. Delta argues the tribunal had no power to issue a partial award. Which is correct under Section 31?

Delta is incorrect. Section 31(6) allows the tribunal at any time during the proceedings to make an interim award on any matter on which it could make a final award. A decision on liability qualifies, and no consent or court confirmation is needed.

  1. ADelta is correct, as only one final award is permitted
  2. BDelta is correct, as interim awards need the parties' consent
  3. CDelta is incorrect, as the tribunal may at any time during the proceedings make an interim award on any matter on which it may make a final awardCorrect
  4. DDelta is incorrect, but the interim award is valid only if the court confirms it

Explanation

Section 31(6) lets the tribunal, at any time during the arbitral proceedings, make an interim arbitral award on any matter on which it may make a final award. Liability is such a matter. No party consent or court confirmation is required by that provision.

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