Section 39 Arbitration Act 1996 grants the arbitral tribunal LIEN on the:
AARBITRAL AWARD for any unpaid costs of the arbitration; tribunal may REFUSE TO DELIVER it to any party until the unpaid costs are paid in full
Bno lien (cf. Arbitration and Conciliation Act 1996, Section 39) (cf. Arbitration and Conciliation Act 1996, Section 39)
Cno power (cf. Arbitration and Conciliation Act 1996, Section 39) (cf. Arbitration and Conciliation Act 1996, Section 39)
Dunlimited (cf. Arbitration and Conciliation Act 1996, Section 39) (cf. Arbitration and Conciliation Act 1996, Section 39)
Answer & Solution
Correct answer: A. ARBITRAL AWARD for any unpaid costs of the arbitration; tribunal may REFUSE TO DELIVER it to any party until the unpaid costs are paid in full
1. Section 39 Arbitration and Conciliation Act 1996:
2. (1) Subject to the provisions of sub-section (2) and any provision to the contrary in the arbitration agreement, the arbitral tribunal SHALL HAVE A LIEN on the ARBITRAL AWARD for any unpaid costs of the arbitration.
3. (2) If an arbitral award is held to have been illegally retained or any other improper or unlawful condition has been imposed, the application may be made to the court (proviso to give relief).
4. The provision ensures arbitrators receive their fees by giving them a SECURITY interest in the award.
5. CONDITIONS: lien is for UNPAID COSTS — arbitral fees, expenses.
6. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 39_
Related questions
In SBP & Co. v. PATEL ENGINEERING LTD (2005) 8 SCC 618, the Supreme Court held that the JUSection 28 Arbitration Act 1996 specifies APPLICABLE LAW:INTERIM AWARD under Arbitration Act 1996:Section 38 Arbitration Act 1996 (DEPOSITS) requires parties to:DOMESTIC ARBITRATION versus INTERNATIONAL COMMERCIAL ARBITRATION:Section 21 Arbitration Act 1996 defines COMMENCEMENT OF ARBITRATION as:Section 43 Arbitration Act 1996 (LIMITATION) provides that the period of LIMITATION ACT 19Section 37 Arbitration Act 1996 lists APPEALABLE ORDERS: