What is Section 17 of Arbitration and Conciliation Act

Section 17. Interim measures ordered by arbitral tribunal under Arbitration and Conciliation Act, 1996

CHAPTER III
Composition of arbitral tribunal

Section 17. Interim measures ordered by arbitral tribunal

(1) A party may, during the arbitral proceedings [***], apply to the arbitral tribunal-

    (i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings; or

    (ii) for an interim measure of protection in respect of any of the following matters, namely:-

        (a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;

        (b) securing the amount in dispute in the arbitration;

       (c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;

         (d) interim injunction or the appointment of a receiver;

      (e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient, and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it.

(2) Subject to any orders passed in an appeal under section 37, any order issued by the arbitral tribunal under this section shall be deemed to be an order of the Court for all purposes and shall be enforceable under the Code of Civil Procedure, 1908, in the same manner as if it were an order of the Court.]

Scope of Section 17 of Arbitration and Conciliation Act, 1996

A mechanism is available for the parties to an arbitration to seek interim reliefs from the arbitral tribunal during the pendency of the arbitral proceedings by way of Section 17 of the Arbitration and Conciliation Act, 1996.

Disputing Parties in an arbitration can seek the interim reliefs after invocation of the arbitration proceedings till the passing of the award. Prior to 2015 amendments arbitral tribunal was not having enough teeths as its powers to pass orders were quite restricted in comparison to the wide powers vested to courts under Section 9 of the Act.

Post 23 October 2015 it was specifically included that the Arbitrator can pass interim orders for appointment of a guardian, securing the amount of dispute in the arbitration, preservation, interim custody or sale of any goods or property which are the subject matter of the arbitration agreement.

The Amendment Act of 2015 further provides that every order passed by the arbitral tribunal under Section 17 of the Act would be deemed to be an order of the Civil Court and is binding and enforceable under the provisions of the Code of Civil Procedure, 1908. The anamoly that such interim orders can be passed even afyer passing of final Award was corrected in 2019 Amendments.