Interim measures in Aribitration
Interim Measures in Arbitration — Detailed Explanation
What are Interim Measures?
Interim measures are temporary orders issued before or during arbitration proceedings.
Their purpose is to protect the rights of parties, preserve evidence, or maintain the status quo until the final award.
They help avoid irreparable harm or injustice during the arbitration process.
Why are Interim Measures Important?
Arbitration can take time, so parties might need urgent protection.
Courts may be reluctant to interfere once arbitration starts.
Interim measures ensure fairness and effectiveness of arbitration.
Types of Interim Measures
Preservation of assets: To prevent disposal or transfer of disputed property.
Preservation of evidence: To ensure crucial evidence isn’t destroyed or altered.
Maintaining status quo: Preventing actions that would change the current situation.
Security for costs: Ensuring a party can pay arbitration costs.
Injunctions: Preventing a party from doing certain acts temporarily.
Authority to Grant Interim Measures
Arbitrators may have power to grant interim relief if agreed by parties or under arbitration rules.
Courts can also grant interim measures even after arbitration has started, subject to arbitration laws.
Legal Provisions in India:
Section 9 of the Arbitration and Conciliation Act, 1996:
Provides that courts may grant interim measures before or during arbitration.
Section 17 of the Arbitration and Conciliation Act, 1996:
Gives arbitrators power to order interim measures during arbitration proceedings.
Case Laws:
1. SMC Pneumatics (India) Pvt Ltd v. Jogesh Kwatra (2018)
Supreme Court held that courts can grant interim relief under Section 9 even after the arbitration tribunal is constituted if the tribunal is unable or unwilling to grant such relief.
2. Chloro Controls India Pvt Ltd v. Severn Trent Water Purification Inc. (2013)
The Supreme Court explained the scope of Section 9 and Section 17 and held that courts can intervene to grant interim measures to support arbitration.
Clarified that interim measures from courts should not interfere unnecessarily with arbitration.
3. Oil & Natural Gas Corporation Ltd. v. Saw Pipes Ltd. (2003)
Established the principle of “interference as little as possible” by courts in arbitration matters.
But acknowledged courts’ powers to grant interim relief under Section 9.
Summary Table
| Aspect | Details |
|---|---|
| Interim Measures | Temporary relief before/final arbitration |
| Purpose | Protect rights, evidence, status quo |
| Legal Basis in India | Sections 9 & 17 of Arbitration and Conciliation Act, 1996 |
| Courts’ Role | Can grant interim relief even after tribunal forms |
| Arbitrators’ Role | Can order interim relief during arbitration |
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