Section 9 of the Arbitration act, 1996- Interim measures by the court
Section 9 entails the principle that any person can seek interim relief/measure from the Court. It provides for the interference of the Court before or during the arbitration proceedings and during the post-award stage. It provides a remedy to the parties to approach the Court and seek its interference to protect and secure their interests. However, once an arbitral tribunal is appointed, the Court can only intervene to provide interim protection if it appears to the Court that the remedy provided under Section 17 is not efficacious.
Where the Court grants interim relief to a party u/s 9 before the commencement of arbitral proceedings, the proceedings must begin within 90 days from the date of order or within such time as the Court may determine. The intention of having this clause is to ensure that the interim order u/s 9 does not continue indefinitely in the absence of arbitral proceedings.
The object of Section 9 is to preserve the subject matter of the dispute so that the opposite party may not frustrate the subject matter itself. (Vishal Gupta vs Udai K. Lauria, 2009 SCC OnLine Del 2713) It is to facilitate and subserve an ongoing arbitral proceeding.
Section 9(1) of Arbitration and Conciliation Act, 1996
Section 9(1) provides a complete list of situations and conditions when a person may approach the Court for interim measures as well as the protections offered. According to Section 9(1)(i) of the Arbitration and Conciliation Act, 1996, an individual may file an application to appoint a guardian for a minor or a person of unsound mind for arbitral proceedings. Section 9(1)(ii) provides a broad category of power to grant interim measures of protection to the Court or the adjudicating authority for the following:
- According to Section 9(1)(ii)(a), the Court may provide interim relief to preserve, interim custody or sale of goods, being the subject matter of the arbitration agreement under Section 7.
- Under 9(1)(ii)(b), the Court may grant an interim relief to secure the amount in dispute.
In any property-related disputes, subject to arbitration proceedings, under 9(1)(ii)(c), the Court may grant interim relief through the authorization of any person entering the land or the building in possession to either of the party or to take samples, for making any observations or any experiments whichever is necessary to obtain full information or total evidence.
- The Court may also grant the relief of interim injunction under Section 9(1)(ii)(d) provided that the conditions of establishment of prima facie case, balance of convenience in favour and irreparable damages are maintained. Under this clause, the Court may also appoint a receiver, a court officer appointed by the Court to supervise disputed properties or things in question.
- Apart from these, Section 9(1)(ii)(e) provides the Court discretionary power to provide any interim protections other than the ones listed above If the court deems it fit, just and convenient. In this regard, the Court has the same power to give orders like any proceedings before it.
Section 9(2) of Arbitration and Conciliation Act, 1996
Section 9(2) was incorporated after the 2015 amendment. Under section 9(2) of the Arbitration and Conciliation Act, 1996, there is a statutory requirement to invoke arbitration and move the Court for the appointment of an arbitrator or if it is to be done through mutual consent, the parties have to take the necessary steps through mutual consent within a period of 90 days.
Section 9(3) of Arbitration and Conciliation Act, 1996
Section 9(3) of the Arbitration and Conciliation Act, 1996 was also incorporated after the 2015 amendment.
Under Section 9(3) there is a clear dictum against the Court entertaining an application under Section 9 once the Tribunal has been constituted unless there are some exceptional circumstances which may justify a recourse to the Court even when an Arbitral Tribunal is in session. The main objective of interim relief applications under Section 9 is urgent disposal and ensuring that the arbitration proceedings do not become infructuous.
To enhance your legal career as a corporate lawyer or to setup your own private practice you must acquire practical legal skills, Inculcatelaw offers comprehensive courses to enhance your legal knowledge. Follow us on Linkedin and Instagram
Submit your blog on submissions.inculcatelaw@gmail.com .