Introduction 

Chapter VI of the Arbitration and Conciliation Act, 1996 deals with how arbitral awards are made and how arbitration proceedings are concluded. The provisions in this chapter are aimed at ensuring that arbitration remains an efficient, fair, and enforceable method for resolving disputes. This chapter outlines the rules governing the decision-making process of the arbitral tribunal, timelines, fast-track options, settlements, cost-related matters, and the final termination of proceedings. 

Substantive Rules for Deciding the Dispute (Section 28) 

• If arbitration is held in India: 
  • For domestic arbitrations: The arbitral tribunal must apply Indian laws. 
  • For international commercial arbitrations: 
    • The tribunal will apply the law chosen by the parties. 
    • If no law is chosen, the tribunal will apply what it considers appropriate. 
• The tribunal can only decide the dispute based on equity (fairness) if both parties have clearly agreed to it. 
• The tribunal must consider the contract terms and trade customs relevant to the case. 

Decision-Making by Multiple Arbitrators (Section 29) 

• Decisions are made by a majority, unless parties decide otherwise. 
• Procedural issues can be decided by the presiding arbitrator if permitted by the parties or other arbitrators. 

Time Limits for Making the Award (Section 29A) 

• For non-international cases: Award must be given within 12 months from the date pleadings are completed. 
• For international cases: No strict limit, but efforts should be made to give the award within 12 months. 
• If award is made within 6 months of starting, extra fees may be paid. 
• Parties may extend the period by 6 months by mutual consent. 
• If no award is made in time: 
  • The arbitrator’s role ends unless the Court extends the time. 
  • The Court can also reduce the arbitrator’s fee if the delay is the arbitrator’s fault. 
• Court can replace the arbitrator(s) and proceedings will continue from where they left off. 
• Costs can be imposed for delays. 
• Court should decide extension applications within 60 days. 

Fast-Track Arbitration (Section 29B)

• Parties can agree in writing to fast-track arbitration, often with a single arbitrator. 
• Main features: 
  • Decisions based on written submissions only (no oral hearing unless necessary). 
  • Award to be made within 6 months. 
  • If delay occurs, rules of Section 29A will apply. 

Settlement of Disputes (Section 30) 

• Arbitrators can promote settlement through mediation or conciliation. 
• If settlement is reached: 
  • Proceedings end. 
  • A settlement award can be made if parties agree. 
  • This award has the same legal effect as any other arbitral award. 

Form and Contents of Arbitral Award (Section 31) 

• Award must be in writing and signed by arbitrators. 
• Majority signatures in the award are enough if reasons for missing signatures are explained. 
• Reasons for decision must be given, unless: 
  • Parties agree otherwise, or 
  • It's a settlement award. 
• Award must mention the date and place of arbitration. 
• A signed copy of the award must be given to each party. 
• Tribunal can make interim awards. 
• Tribunal may award interest: 
  • Before award: any reasonable rate. 
  • After award: 2% above current interest rate (unless stated otherwise). 
• Costs are also awarded, including: 
  • Arbitrator and witness fees, 
  • Legal expenses, 
  • Administrative charges. 

Cost Regime (Section 31A) 

• Court or tribunal can decide: 
  • Who pays the costs, 
  • How much, and 
  • When it should be paid. 
• General rule: Loser pays the winner’s costs. 
• Exceptions can be made with reasons. 
• Factors considered: 
  • Conduct of parties, 
  • Partial success, 
  • Frivolous claims/counterclaims, 
  • Refusal of reasonable settlement offers.

Termination of Proceedings (Section 32) 

• Arbitration ends when: 
  • Final award is given, or 
  • Tribunal orders termination due to: 
    • Claim being withdrawn (unless objected), 
    • Parties agree to terminate, 
    • Continuation becomes impossible or unnecessary. 

Corrections and Clarifications (Section 33) 

• Within 30 days of award, a party may: 
  • Request correction of errors (like typos or math mistakes). 
  • Request interpretation of a specific part (if parties had agreed). 
• Tribunal may correct errors on its own within 30 days. 
• If some claims were missed in the award, parties can request an additional award. 
• Tribunal has 60 days to make such an additional award. 
• All corrections and additions follow the same rules as a regular award. 

Conclusion 

Chapter VI of the Arbitration and Conciliation Act, 1996 ensures that the arbitration process is concluded with a well-structured and enforceable award, within a reasonable time frame. It empowers parties and tribunals to maintain procedural discipline, encourages amicable settlements, provides flexibility through fast-track options, and ensures transparency regarding costs and interest. By balancing efficiency, fairness, and enforceability, these provisions make arbitration a credible alternative to traditional court litigation.