Question

Kiran and Meera are involved in an arbitration, where Kiran was awarded Rs. 10 lakhs as compensation. Meera refuses to pay the amount, arguing that the award was not enforceable because of certain procedural irregularities in the arbitration process. Kiran decides to approach the court to enforce the arbitral award. Which of the following provisions of the Arbitration and Conciliation Act, 1996 governs the enforcement of an arbitral award?

• A. Section 9 of the Act governs the enforcement of arbitral awards.
• B. Section 11 of the Act deals with the enforcement of arbitral awards, not the appeal.
• C. Section 34 of the Act deals with the enforcement of an arbitral award.
• D. Section 36 of the Act allows for the automatic enforcement of an arbitral award unless set aside by the court.

Hint:

An arbitral award under Section 36 is as enforceable as a civil court decree unless stayed under Section 34.

Answer 1

The Correct Option is D

Step 1: Understanding enforcement of arbitral awards.
Once an arbitral award is passed, it can be enforced in the same manner as a decree of a civil court under Section 36 of the Arbitration and Conciliation Act, 1996.
Step 2: Exception to enforcement.
The only exception is if an application to set aside the award is made under Section 34, and a court grants a stay on the award’s enforcement.
Step 3: Conclusion.
Hence, Section 36 governs the automatic enforcement of arbitral awards unless stayed or set aside.