MAKING OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS
I.
Section 28(1) of the Arbitration and Conciliation Act, 1996 provides that where the place of arbitration is situated in India-
(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for the time being in force in India;
(b) in international commercial arbitration-
(i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute;
(ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules;
(iii) failing any designation of the law under clause (a) by the parties, the arbitral tribunal shall apply to rules of law it considers to be appropriate given all the circumstances surrounding the dispute.
Section 28(2) of the Act provides that the arbitral tribunal shall decide ex aequo et bono or as amiable composite only if the parties have expressly authorised it to do so.
Section 28(3) lays down that in all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the wages of the trade applicable to the transaction.
Section 28 of the Arbitration and Conciliation Act, 1996 deals with the determination of the rules applicable to the substance of the dispute. Section 28 applies to an arbitration other than an international commercial arbitration as well as to an international commercial arbitration, where the place of arbitration is in India. The provisions of section 28 will not apply to an arbitration where the place of arbitration is outside India. As per the provisions of section 28(1)(a), where the place of arbitration is in India and the arbitration is not an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to it in accordance with the substantive law for the time being in India, e.g. the Indian Contract Act, 1872 the Sale of goods Act, 1930 etc. Under the provisions of section 28(1)(b)(i), the parties are free to choose the rules of law as applicable to the substance of the dispute. Section 28(1)(b)(ii) gives the parties freedom to choose the law or legal system of any country that they wish to be applied to their dispute, by determining that any chosen law or legal system has to be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules. If the parties fail to designate the rules of law applicable to the substance of dispute, then under the provisions of section 28(1)(b)(iii), the arbitral tribunal has the power to apply the rules of law it considers to be appropriate considering all the circumstances surrounding the dispute. The right of the parties to choose a law applicable to the merits of the dispute, to the procedure of arbitration proceedings and to the arbitration agreement is recognised by most arbitration legislation, arbitration rules and international treaties and conventions.
This phrase means injustice and fairness; according to what is just and good; according to equity and good conscience.1 Section 28(2) of the Arbitration and Conciliation Act, 1996 provides that if the parties to an arbitration proceedings expressly authorise an arbitral tribunal, it shall decide an issue ex aequo et bono. It is to be noted that the arbitral tribunal cannot decide an issue ex aequo et bono, it can do so only if authorised by the parties by express agreement. Even in a case where the parties have expressly authorised the arbitral tribunal to decide ex aequo et bono, the tribunal should not bypass any mandatory requirements relevant to the dispute.
An arbitrator cannot act arbitrarily, irrationally, capriciously or independently of the contract. He has no power apart from what the parties have given him under the contract. If he has travelled outside the bounds of the contract, he has acted without jurisdiction. A conscious disregard of law or the provisions of the contract from which he has derived his authority, vitiates the award [Associated Engg. Co. v. Government of Andhra Pradesh, MANU/SC/0054/1992 : AIR 1992 SC 232.]
Section 28(2) provides that if the parties have expressly authorised an arbitral tribunal to that effect, the tribunal shall decide issues in an arbitration proceeding as amiable compositeur. The expression amiable compositeur is a French term which means a person who adopts a flexible approach reflecting
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1. Black's Law Dictionary, 5th Edn., (1979), p. 500.
fairness and reality in deciding an issue. Under the provisions of section 28(2), the arbitral tribunal can decide as amiable compositeur only if the parties have expressly authorised it to do so. It is to be noted that even in a case where the parties have expressly authorised an arbitral tribunal to decide as amiable compositeur, the tribunal should not bypass any mandatory requirement relevant to the dispute. An amiable compositeur has the authority to rule in equity, but only after determining the legal outcome to the dispute and concluding that the outcome is inappropriate or unacceptable in the circumstances of the case. It is said that the concept of amiable compositeur provides a 'safety valve' of avoiding an inapposite legal result. The concept of amiable compositeur places reliance upon the knowledge, ability and experience of the arbitrators to arrive at a practical solution to the dispute.
The expression lex arbitri means the law governing the existence and proceedings of the arbitral tribunal. It is a set of mandatory rules of law applicable to arbitration at the seat of the arbitration. In Paul Smith Ltd. v. H & S International Holding Inc., [1991] 2 Lloyd's Rep 127 (130), it was observed that the law governing the arbitration is a body of rules which sets a standard external to the arbitration agreement, and the wishes of the parties, for the conduct of the arbitration. The lex arbitri would cover the situations like arbitrability of the subject-matter of the dispute under the law for the time being in force in India, point of time for commencement of arbitral proceedings, form and validity of the award, recourse against arbitral award and appeals etc.
II.
Section 29(1) of the Arbitration and Conciliation Act, 1996 provides that unless otherwise agreed by the parties, in arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by majority of all its members.
Section 29(2) of the Act provides that notwithstanding what is stated in section 29(1), the questions of procedure may be decided by the presiding arbitrator if authorised by the parties or all the members of the arbitral tribunal.
Section 29 of the Arbitration and Conciliation Act, 1996 determines the arbitral tribunal's decision making process. During the course of an arbitral proceedings, the arbitral tribunal makes various decisions, orders and awards. In an arbitration with more than one arbitrator, all the arbitrators comprised in the arbitral tribunal shall take part in the arbitral proceedings and its deliberations and is only then that the decision made by majority of all its members shall prevail. It is necessary that all the arbitrators must have participated in the arbitral proceedings and must have acted together. In Abu Hamid v. Golam Sarvar, AIR 1918 Cal 865, it was held that as the arbitrators must all act, so must they all act together. They must each be present at every meeting; and the witnesses and the parties must be examined in the presence of them all.....Thus where one or some of the arbitrators were not present during any part of hearing of the arbitration or its deliberations, it was held that the award given was vitiated. But in Varanasi Ramanna v. Killamsetti Appanna, AIR 1920 Mad 288, it was held that an award is not vitiated on the ground that at one of the meetings of the arbitration, one of them was absent, where it is shown that nothing material was done at that meeting, which in any way affected the award.
Section 29(2) is an exception to section 29(1) and provides that if the parties to the arbitration proceedings or all the members of the arbitral tribunal authorise the presiding arbitrator, he may decide the questions of procedure.
Section 30(1) of the Arbitration and Conciliation Act, 1996 provides that it is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement.
Section 30(2) of the Act provides that if, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal record the settlement in the form of an arbitral award or agree terms.
An arbitral award on agreed terms shall be made in accordance with section 31 of the Act and shall state that it is an arbitral award.1 An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute.2
Under the provisions of section 30(1), the arbitral tribunal may encourage the parties to an arbitral proceedings to settle their dispute and with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other ADR procedures at any time during the arbitral proceedings to encourage settlement. Section 30(1) gives the arbitral tribunal statutory authority to promote resolution of dispute between the parties by settlement. But in encouraging the parties to resolve their dispute by settlement, the arbitral tribunal cannot bypass the arbitral procedure agreed upon by the parties. The parties are entitled to settle their disputes at any time and in any manner they choose.
The conciliation procedure provided under the provisions of section 30(1) is different from conciliation referred to in Part-III of the Act. Whereas a conciliation initiated under Part-III is a separate proceeding in accordance with the detailed scheme envisaged under that part, a conciliation under the provisions of section 30(1) of the Act will be more informal and flexible.
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1. Section 30(3).
2. Section 30(4).
Section 30(2) provides that if during the arbitral proceedings the parties arrive at a settlement of their dispute, the arbitral tribunal shall terminate the proceeding and on the request of the parties and if the arbitral tribunal has no objection, record the statement in the form of an arbitral award on agreed terms. It is to be noted that an arbitral tribunal can record a settlement award only if requested by the parties. A settlement award shall have the same status and effect as any other arbitral award on the substance of the dispute. The award will be final and binding on the parties and persons claiming under them respectively. It shall be enforceable under the Code of Civil Procedure, 1908 in the same manner as if it were a decree of court.1
In Nathan Steels Ltd. v. Associated Constructions, 1995 Supp (3) SCC 324, it was held that once the parties arrived at a settlement, it is not open to one of the parties to the settlement to spurn it on the ground that it was a mistake and to proceed to invoke the arbitration clause. If this is permitted, the sanctity of contract, the settlement also being a contract, would be wholly lost.
IV.
Section 31(1) of the Arbitration and Conciliation Act, 1996 provides that an arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.
Section 31(2) of the Act provides that 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.
Section 31(3) provides that the arbitral award shall state the reasons upon which it is based, unless-
(a) the parties have agreed that no reasons are to be given, or
(b) the award is an arbitral award on agreed terms under section 30. Section 31(4) provides that the arbitral award shall state its date and the place of arbitration and the award shall be deemed to have been made at that place. Section 31(5) provides that after the arbitral award is made, a signed copy shall be delivered to each party. Section 31(6) lays down that the arbitral tribunal may at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral. Section 31(7)(a) provides that unless otherwise agreed by the parties, where and insofar as an arbitral award is for the payment of money, the arbitral tribunal my include in the sum for which the award is made interest at such rate as it deem reasonable, on the whole or any part of the money, for] the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.
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1. Section 36.
Section 31(7)(b) then lays down that a sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of 18% per annum from the date of the award to the date of payment.
Section 31(8) provides that unless otherwise agreed by the parties,-
(a) the costs of an arbitration shall be fixed by the arbitral tribunal;
(b) the arbitral tribunal shall specify
(i) the party entitled to costs,
(ii) the party who shall pay the costs,
(iii) the amount of costs or method of determining that amount, and
(iv) the manner in which the costs shall be paid.
The explanation appended to section 31 provides that for the purposes of clause (a) of sub-section 8 of section 31 "costs" means reasonable costs relating to-
(i) the fees and expenses of the arbitrators and witnesses,
(ii) legal fees and expenses,
(iii) any administration fees of the institution supervising the arbitration, and
(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award.
(i) An arbitral award must be in writing.1 An oral award is invalid.
(ii) An arbitral award must be signed by the members of the arbitral tribunal.1 In an arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient if the reason for any omitted signature is stated.2
(iii) The arbitral award must be dated. Section 31(4) provides that the arbitral award shall state its date. The date of the award is the date on which it has been made by signing it. The date of the award is relevant in calculating the amount of interest due on the award and also for deciding whether the award has been made within the time limit agreed by the parties
(iv) An arbitral award must state the place of arbitration as determined in accordance with section 20 of the Act and the award shall be deemed to have been made at that place.3
(v) An arbitral award shall state the reasons upon which it is based, unless-(a) the parties have agreed that no reasons are to be given; or (b) the award is an arbitral award on agreed terms under section 30.4
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1. Section 31(1).
2. Section 31(2).
3. Section 31(4).
4. Section 31(3).
In the absence of an agreement to the contrary between the parties or if the award is not on agreed terms under section 30, it is an obligation of the arbitrators to give reasons of an arbitral award. The court can order reasons to be given for the award for the purpose of determining whether the arbitrators have exceeded their jurisdiction.
(vi) An arbitral award should specifically name the parties to the arbitration proceedings for the purpose of identification in the award [Gabela v. Aris (Owners), [1927] 29 Lloyds Rep 289].
(vii) An arbitral award usually states the nature of the dispute and the circumstances in which the dispute arose and come to the stage of arbitration. Such statements are known as recitals.
(viii) The award must be notified to the parties immediately after its making. Section 31(5) provides that after the arbitral award is made, a signed copy shall be delivered to each party. The provisions of section 31(5) are not subject to party autonomy and the parties cannot agree otherwise.
(ix) An arbitral award must be registered. Section 17(1)(e) of the Registration Act, 1908 provides that any award which purports or operates to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees or upwards, to or in immovable property requires compulsory registration. Thus, if an award which is required to be compulsorily registered but has not been registered within the prescribed time, it is not admissible in evidence because it would be nullity.1
(x) After the arbitral award is made, signed copy shall be delivered to each party [section 31(5)].
(xi) An arbitral award which directs partition falls within the definition of "instruments of partition' under section 2(15) of the Indian Stamp Act, 1899 and is liable to stamp duty without any exception under Art. 45 of the Act. An arbitral award which is made on a reference made by courts in pending suit or other proceedings are not liable to any stamp duty. But an arbitral award which is given on private reference is liable to stamp duty under Art. 12 of the Stamp Act, 1899 Darshan Singh v. Forward India Finance Pvt. Ltd., AIR 1984 Del 140]
Section 31(6) provides that the arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award. Thus, under the provision of section 31(6) it is open to an arbitral tribunal to make an interim award on any matter on which it may make a final arbitral award. In an interim award, the arbitral tribunal may decide some of the issues or some of the claims, so
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1. Section 25, Indian Registration Act, 1908.
that the remaining matters will be dealt with later. An interim arbitral award must be made in the same way as an award, after hearing the parties, and on consideration of the evidence adduced [Anand Prakash v. Asstt. Registrar, MANU/UP/0007/1968 : AIR 1968 All 22]. An interim award may be intended to have effect only so long as the final award is not delivered. In that case, it will have the force of interim award and will cease to have effect after the final award is made. But if the interim award is intended to finally determine the rights of the parties, it will have the force of complete award and will have effect even after the final award is delivered. An interim award is final to the extent it goes. It binds the parties [Satwant Singh Sodhi v. State of Punjab, MANU/SC/0212/1999 : (1999) 3 SCC 487]. Interim awards are enforceable under section 36 of the Act, as decrees of the court. In Uttam Singh Duggal & Co. Pvt. Ltd. v. Hindustan Steel Ltd., MANU/MP/0057/1982 : AIR 1982 MP 206, it was held that a decision by the arbitration on the preliminary issue of their jurisdiction is not an interim award. An interim award must decide the claim or part of it or any issue of liability. Usually, in practice, interim awards are made in rare cases. The arbitrators prefer to dispose of the entire matter in the final award. It is to be noted that an interim arbitral award would be as much liable to be set aside as the final arbitral award, because under section 2(c) of the Act, the arbitral award is defined to include an interim award.
Section 31(7)(a) of the Arbitration and Conciliation Act, 1996 provides that unless otherwise agreed by the parties, where and insofar as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.
Section 31(7)(b) of the Act then lays down that a sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of 18% per annum from the date of the award to the date of payment.
Under the provisions of section 31(7)(a), subject to the agreement between the parties, the arbitral tribunal may grant interest-(1) at a rate it considers reasonable, (ii) on the whole or part of the money found due, (iii) for the whole or any part of the period. This provision gives the arbitral tribunal direction to award interest it deems reasonable. The parties may, by agreement, specify the rate of interest for the unpaid sum. If the parties fail to or does not arrive at such agreement, the tribunal may adopt a rate at or above the bank borrowing rates for the period in question. Under the provisions of section 31(7)(b), the arbitral tribunal may award interest on the sum of money awarded for the period from the date of the award to the date of payment and unless the arbitral award direct otherwise, the rate of interest shall be 18% per annum.
In Jagdish Rai and Bros. v. Union of India, MANU/SC/0181/1999 : (1999) 3 SCC 257, the Supreme Court observed that there are four stages for grant of interest by an arbitral tribunal, namely-
(i) from the stage of accrual of cause of action till filing of the arbitration proceedings,
(ii) during pendency of the proceedings before the arbitrators,
(iii) future interest arising between the date of award and the date of the decree, and
(iv) interest arising from date of decree till realisation of the award.
The four stages referred to in Jagdish Rai and Bros. v. Union of India, MANU/SC/0181/1999 : (1999) 3 SCC 257, is now reduced to two situations under the provisions of section 31(7)(a) and (b), namely-(i) the period on which the cause of action arose and the date on which the award is made, i.e, period of pre-award interest, and (ii) from the date of the award to the date of payment i.e., the period of post-award interest.
In P.T. George v. State of Kerala, (2001) 2 SCC 758, it was held that the arbitral tribunal has the power to award interest in all the four stages. It is to be noted that pre-reference as well as pendente lite interest could not be awarded by an arbitrator unless the same had not been claimed in the claim or counter-claim or petition. [Tulsi Constructions v. Oil and Natural Gas Corporation Ltd., (2002) 10 SCC 108. Regarding the award of interest pendente lite, the Supreme Court in Secy. Irrigation Department, Government of Orissa v. G.C. Roy, MANU/SC/0142/1992 : (1992) 1 SCC 508, observed that where the agreement between the parties does not prohibit grant of interest and where a party claims interest and that dispute (along with the claim for principal amount or independently) is referred to the arbitrator, he shall have the power to award interest pendente lite. But this does not mean that in every case the arbitrator should necessarily award interest pendente lite. It is matter within his discretion to be exercised in the light of all the facts and circumstances of the case keeping the ends of justice in view.
The discretion of the arbitral tribunal to award the rate of interest has to be exercised judicially on the principles of fairness, equity and good conscience. The tribunal must exercise its power to award interest in the absence of a good reason not to do so [Wildhandel N.V. v. Tucker and Cross, (1976) 1 Lloyd's Rep 341].
Costs in relation to an arbitration proceeding (within the meaning of the Explanation appended to section 31(8), means reasonable costs relating to-
(i) the fees and expenses of the arbitrators and witnesses,
(ii) legal fees and expenses,
(iii) any administration fees of the institution supervising the arbitration, and
(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award.
Section 31(8)(a) of the Arbitration and Conciliation Act, 1996 provides that unless otherwise agreed by the parties the costs of an arbitration shall be fixed by the arbitral tribunal
Section 31(8)(b) of the Act then lays down that unless otherwise agreed by the parties, the arbitral tribunal shall specify-
(i) the party entitled to costs,
(ii) the party who shall pay the costs,
(iii) the amount of costs or method of determining that amount, and
(iv) the manner in which the costs shall be paid.
The arbitrator has full discretion to pass orders about costs incurred by the parties in connection with the arbitration proceedings [Eastern and North Frontier Railway Co-operative Bank Ltd. v. B. Guha & Co., MANU/WB/0027/1986 : AIR 1986 Cal 146]. An arbitral tribunal has no jurisdiction to award costs in respect of the proceedings which do not arise out of the terms of the agreement or which are not matter of submission to arbitration [Skanska Cementation India Ltd. v. Bajranglal Agarwal, 2004 (2) Arb LR 67 (Bom.)]. The discretion exercised by the arbitrator in regard to award of costs cannot be interfered with unless it is shown that the discretion was arbitrarily exercised [Kapila Textile Mills Ltd., Bangalore v. Madhava & Co., AIR 1963 Mys 39]. It is to be noted that in exercising its discretion to award costs, the arbitral tribunal must act judicially. An arbitral award may be reviewable by the court under section 34 for failure to exercise discretion and for abuse of discretionary power resulting in injustice to a party on account of bias.
Section 32(1) of the Arbitration and Conciliation Act, 1996 provides that the arbitral proceedings shall be terminated by the final arbitral award or by an order of arbitral tribunal under section 32(2)
Section 32(2) of Act lays down that the arbitral tribunal shall issue an order for the termination of the arbitral proceedings where-
(a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining final settlement of the dispute.
(b) the parties agree on the termination of the proceedings, or
(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.
Section 32(3) provides that subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings.
Section 32 of the Act deals with the termination of the arbitral proceedings. But the provisions of section 32 are not exhaustive of the situations in which arbitral proceedings may terminate. Besides the termination of an arbitral proceedings under section 32(1) by making of final award by an arbitral tribunal or by an order of the arbitral tribunal terminating the arbitral proceedings on any of the grounds mentioned in section 32(2) of the Act, an arbitral proceeding may terminate-(a) under section 25(a) on default of the claimant to communicate his statement of claim, (b) under section 30(2) when the parties arrive at a settlement of their dispute, and (c) under section 38(2), when the parties fail to pay the amount of deposit fixed by the arbitral tribunal
Under the provisions of section 32(2), an arbitration proceeding come to an end with the making of the final arbitral award and no formal order is necessary for terminating the arbitration proceedings. The award itself constitutes the order of termination of the proceedings. With the making of the final award the authority of the arbitral tribunal ceases to operate and the reference terminates.
Under the provisions of section 32(2), an arbitral tribunal shall issue an order for the termination of the arbitral proceedings if-(i) the claimant withdraws his claim; (ii) the parties agree on the termination of the proceedings; or (iii) continuation of proceedings becomes unnecessary or impossible.
A claimant is free to withdraw his claim at any time, but if such withdrawal adversely affects the rights of the respondent, he may object to such withdrawal and termination of proceedings due to such withdrawal. Sometimes, the parties may agree to terminate the arbitral proceedings. Further, the arbitral tribunal may issue an order terminating the proceedings if it finds that the continuation of proceedings has become unnecessary or impossible.
VI.
Section 33(1) of the Arbitration and Conciliation Act, 1996 provides that within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties-
(a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any clerical or typographical errors or any other errors of a similar nature occurring in the award;
(b) if so agreed by the parties, a party, with notice to the other party may request the arbitral tribunal to give an interpretation of a specific point or part of the award.
Section 33(2) provides that if the arbitral tribunal considers the request made under section 33(1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award.
Section 33(3) lays down that the arbitral tribunal may correct any computation, clerical, typographical or any other errors of a similar nature, on its own initiative, within thirty days from the date of the arbitral award.
Section 33(4) provides that unless otherwise agreed by the parties, a party with notice to the other party, may request the arbitral tribunal within thirty days from the receipt of the arbitral award, to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award. If the arbitral tribunal considers the request to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request within [section 33(5)].
Section 33(6) provides that the arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under section 33(2) or section 33(5)
Section 33(7) provides that the provisions of section 31 regarding the form and contents of arbitral awards shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under the provisions of section 33.
The word 'error' refers to an act involving an unintentional deviation from accuracy. A clerical error is an unintentional deviation from accuracy in a statement or a wrong action resulting from inadvertence, family judgment or ignorance. A clerical error must be an error of the nature committed while copying, writing or doing official work. It is a mistake or error relating to a peripheral matter and not to the substance or content [Instrumentation Ltd.
v. E. Kuttappan, 1992 (1) Arb LR 284]. The provision of section 33 does not authorize the arbitral tribunal to have second thoughts on matter on which it has made a conscious act of judgment. It is to be noted that the arbitral tribunal cannot also suo motu give any interpretation of the arbitral award. Such interpretation of an arbitral award can only be made when an application is made by one of the parties to that effect. An interpretation of an arbitral award forms part of the arbitral award.
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