Arbitral award
Also called: Award
The decision of an arbitral tribunal on the dispute referred to it, including an interim award (Section 2(1)(c) of the Arbitration and Conciliation Act, 1996).
Explained
Section 2(1)(c) of the Arbitration and Conciliation Act, 1996 says only that arbitral award includes an interim award. Its form and contents are in Section 31. The award must be in writing and signed by the members of the tribunal, the signatures of the majority sufficing if the reason for any omitted signature is stated. It must state reasons unless the parties agreed otherwise or it is an award on agreed terms under Section 30. It must state its date and the place of arbitration and is deemed made at that place, and a signed copy must be delivered to each party. Section 31(6) allows an interim award on any matter on which a final award may be made.
On interest, Section 31(7)(a) lets the tribunal award pre-award interest at a reasonable rate unless otherwise agreed, and Section 31(7)(b) provides that, unless the award otherwise directs, the sum awarded carries post-award interest at two per cent higher than the current rate of interest prevalent on the date of award. Under Section 35 the award is final and binding on the parties and persons claiming under them.
Recourse against a domestic award lies only by an application to set it aside under Section 34, on the limited grounds stated there. The application must be made within three months of receiving the award, extendable by thirty days for sufficient cause but not thereafter; in Union of India v. Popular Construction Co. (2001) the Supreme Court held that Section 5 of the Limitation Act cannot extend this period. Once that time expires, Section 36 makes the award enforceable as if it were a decree of the court, and merely filing a Section 34 application does not stay it unless the Court grants a stay. In Gayatri Balasamy v. ISG Novasoft Technologies Ltd. (2025) a Constitution Bench recognised only a limited power to modify an award, such as severing an invalid part or correcting clerical or computational errors.
Examiners test the reasons requirement, the post-award interest rate, the Section 34 time limit and automatic enforceability under Section 36.
What the law says
(c) “arbitral award” includes an interim award;
Section 2(1)(c): award includes interim award
(1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.
(2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated.
(3) The arbitral award shall state the reasons upon which it is based, unless—
Form, contents and interest of the award
(1) Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-section (2) and sub-section (3).
(2) An arbitral award may be set aside by the Court only if—
(a) the party making the application [establishes on the basis of the record of the arbitral tribunal that]—
Setting aside the award and time limit
Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively.
Award final and binding
[(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court.
(2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub-section (3), on a separate application made for that purpose.
(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing:
Enforcement of the award as a decree
For the exam
- Section 2(1)(c): arbitral award includes an interim award.
- Section 31: written, signed, reasoned (unless excepted), dated and stating the place.
- Post-award interest: two per cent above the current rate unless the award directs otherwise.
- Section 34 challenge: three months plus thirty days, not thereafter.
- Section 36: enforceable like a decree; filing Section 34 does not by itself stay the award.
621 questions in the Law Maker question bank use this term. Practise Arbitration and Conciliation Act, 1996 questions
Judgments
- Union of India v. Popular Construction Co. (2001)Section 5 of the Limitation Act, 1963 does not apply to an application under Section 34 of the Arbitration and Conciliation Act, 1996; the words 'but not thereafter' in Section 34(3) expressly exclude it.
- Gayatri Balasamy v. ISG Novasoft Technologies Ltd. (2025)A court hearing a challenge under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 has a limited power to modify an arbitral award, exercisable only in specified circumstances.
Related terms
- Arbitration agreementAn agreement by the parties to submit to arbitration all or certain disputes, present or future, arising out of a defined legal relationship (Section 7 of the Arbitration and Conciliation Act, 1996).
- Arbitral tribunalA sole arbitrator or a panel of arbitrators (Section 2(1)(d) of the Arbitration and Conciliation Act, 1996). It decides the dispute and may rule on its own jurisdiction.
- Foreign awardAn award on commercial differences made on or after 11 October 1960 under a written New York Convention agreement, in a territory notified by the Central Government. Section 44, Arbitration Act, 1996.
- International commercial arbitrationAn arbitration of a dispute arising from a legal relationship considered commercial under Indian law, where at least one party is foreign in nationality, residence, incorporation or control. Section 2(1)(f) of the Arbitration Act.
- DecreeThe formal expression of an adjudication that conclusively determines the rights of the parties on all or any matter in controversy in a suit, as defined in Section 2(2) of the CPC.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.