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        2021 (8) TMI 385 - SC - Indian Laws

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        Emergency arbitrator relief under institutional rules is enforceable under the Arbitration Act, with no separate civil appeal available. An emergency arbitrator's interim relief under institutional arbitration rules was held to fall within Section 17(1) of the Arbitration and Conciliation ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Emergency arbitrator relief under institutional rules is enforceable under the Arbitration Act, with no separate civil appeal available.

                            An emergency arbitrator's interim relief under institutional arbitration rules was held to fall within Section 17(1) of the Arbitration and Conciliation Act, 1996 because party autonomy, broad definitions of arbitration and arbitral tribunal, and the phrase "during the arbitral proceedings" extend to emergency arbitration before constitution of the main tribunal. The resulting order is enforceable under Section 17(2) as if it were a court order. The Court further held that Section 37 is a complete appeal code for the Act, and the legal fiction in Section 17(2) does not create a separate appeal under the CPC. No appeal lies under Section 37 or Order XLIII Rule 1(r) against enforcement of such emergency award.




                            Issues: (i) Whether an emergency arbitrator's interim award under institutional arbitration rules is an order under Section 17(1) of the Arbitration and Conciliation Act, 1996 and enforceable under Section 17(2); (ii) Whether an appeal lies under Section 37 of the Arbitration and Conciliation Act, 1996 or under Order XLIII Rule 1(r) of the Code of Civil Procedure, 1908 against an order enforcing such emergency arbitrator's award.

                            Issue (i): Whether an emergency arbitrator's interim award under institutional arbitration rules is an order under Section 17(1) of the Arbitration and Conciliation Act, 1996 and enforceable under Section 17(2).

                            Analysis: The statutory scheme recognises party autonomy and permits arbitration to be conducted under institutional rules. The definitions of arbitration and arbitral tribunal, read with the provisions enabling parties to authorise institutions or persons to determine issues and to agree on procedural rules, were construed broadly. The expression "during the arbitral proceedings" in Section 17(1), read with the commencement provision and the SIAC Rules, was held wide enough to include emergency arbitration undertaken after a notice of arbitration but before constitution of the main tribunal. The absence of any express or implied prohibition against emergency arbitrators, together with the binding nature of such interim relief under the agreed rules, supported inclusion within Section 17(1). Section 17(2) then supplies enforceability of the order as if it were an order of court.

                            Conclusion: Yes. An emergency arbitrator's interim award is covered by Section 17(1) and is enforceable under Section 17(2).

                            Issue (ii): Whether an appeal lies under Section 37 of the Arbitration and Conciliation Act, 1996 or under Order XLIII Rule 1(r) of the Code of Civil Procedure, 1908 against an order enforcing such emergency arbitrator's award.

                            Analysis: Section 37 was treated as a complete and exhaustive appeal code for orders made under the Arbitration and Conciliation Act, 1996. The Court held that the legal fiction in Section 17(2) is limited to enforcement and cannot be extended to create a separate right of appeal under the Code of Civil Procedure, 1908. An enforcement order passed under Section 17(2), including one using Order XXXIX Rule 2-A machinery, remains referable to the Arbitration and Conciliation Act, 1996. Since Section 37(2)(b) permits appeals only from interim measures granted or refused under Section 17, and not from enforcement orders, Order XLIII Rule 1(r) cannot be invoked to create an additional appeal.

                            Conclusion: No. No appeal lies under Section 37 or Order XLIII Rule 1(r) against an order enforcing an emergency arbitrator's award under Section 17(2).

                            Final Conclusion: The emergency arbitrator's interim award was held to be legally enforceable under the Arbitration and Conciliation Act, 1996, and the challenge to the enforcement order through a civil appeal was found not maintainable.

                            Ratio Decidendi: Where parties have agreed to institutional arbitration rules providing for emergency arbitrator relief, such relief is within Section 17(1) of the Arbitration and Conciliation Act, 1996, and the statutory fiction in Section 17(2) is confined to enforcement and does not create a separate appellate remedy outside Section 37.


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