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

Sundaram Textiles and Kaveri Dyes settle their dispute during arbitral proceedings under an arbitration agreement that is silent on settlement. Both parties ask the tribunal to record the settlement as an award on agreed terms, and the tribunal has no objection. What should the tribunal do?

The tribunal should terminate the proceedings and, since both parties request it and it has no objection, record the settlement as an arbitral award on agreed terms. The award must be made in accordance with section 31 and must state that it is an arbitral award.

  1. ATerminate the proceedings and record the settlement as an arbitral award on agreed terms, stating that it is an arbitral awardCorrect
  2. BContinue the proceedings until a final award on merits is made, since a settlement cannot be recorded as an award
  3. CRefer the parties to the Court to have the settlement recorded as a decree
  4. DRecord the settlement as a private contract with no status of an award

Explanation

Under section 30(2), where the parties settle during the proceedings, the tribunal terminates the proceedings and, if requested by the parties and not objected to by it, records the settlement as an award on agreed terms. Section 30(3) requires the award to state that it is an arbitral award. The option of continuing to a merits award is wrong because the dispute is settled.

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