State whether Arbitral Tribunal can have lien on the Arbitral Award for any unpaid costs of the arbitration under the Arbitration and Conciliation Act, 1996?
CS Executive · Economic and Commercial Laws · PYQS · June 2021
State whether Arbitral Tribunal can have lien on the Arbitral Award for any unpaid costs of the arbitration under the Arbitration and Conciliation Act, 1996?
Answer & Explanation:
Section 39(1) of the Arbitration & Conciliation Act, 1996 provides that subject to the provisions of sub-section (2) and to 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. Section 39 (2) of the Act states that if in any case an arbitral tribunal refuses to deliver its award except on payment of the costs demanded by it, the Court may, on an application in this behalf, order that the arbitral tribunal shall deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded, and shall, after such inquiry, if any, as it thinks fit, further order that out of the money so paid into Court there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable and that the balance of the money, if any, shall be refunded to the applicant. As per Section 39 (3) of the Act an application under sub-section (2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal and the arbitral tribunal shall be entitled to appear and he heard on any such application. Under Section 39 (4) of the Act the Court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them.
Topics: Arbitration and Conciliation Act, 1996
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