Section 36 of the Arbitration and Conciliation Act, 1996, deals with the enforcement of the arbitral award, as if it were a decree of the court. It says that 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.
Now, the time limit for making an application to set aside the arbitral award under Section 34 is 3 months. However, in genuine cases where the delay is justified, the court has the power to entertain such application in a further period of 30 days. Thus, a total of 4 months’ time limitation has been laid down for filing an application for setting aside the arbitral award.
In view of this, the arbitral award can be enforced after 4 months if during this period an application to set aside the award has not been filed. Even where such application to set aside the award has been filed, but the court has not given any stay on the operation of the award, then also the enforcement of the award may take place after the above period of 4 months. However, if the operation of the award has been stayed, in that case the enforcement of the award may get delayed.
Accordingly, generally speaking, an execution petition to enforce the arbitral award may be filed after 3 or 4 months, subject to any stay (if any) in any application filed by the opposite party to set aside the award.
Section 36 of the Arbitration and Conciliation Act, 1996, is reproduced as under:
“36. Enforcement.— (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:
Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).”
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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