Arbitration, a favoured method of alternative dispute resolution, culminates in an arbitral award, which is the arbitrator(s)' or tribunal's final decision on the dispute. The Arbitration and Conciliation Act, 1996 (referred to as "ACA" or "the Act"), recognizes that arbitral awards come in various forms, each with a specific purpose within the arbitration process. Understanding these types is essential for understanding arbitration and the resulting rights and obligations.

1. The Spectrum of Arbitral Awards - Beyond a Singular Finality:
   Section 31 of the ACA states that an arbitral award must be written and signed by the arbitral tribunal members. The Act, particularly Sections 30, 31, and 33, acknowledges different types of awards, each designed for different stages or aspects of the arbitral proceedings. These are broadly categorized as:
   • Interim Award:
     An interim award is a temporary decision made by the arbitral tribunal while the arbitration is ongoing. It addresses specific issues requiring immediate attention but does not fully resolve the entire dispute. These awards often address procedural aspects like evidence admissibility, expert appointments, or temporary protection measures under Section 17. They streamline the process and ensure efficient progress. An interim award is binding on the specific issue it covers but doesn't conclude the arbitration.
     Example: In a construction dispute, an interim award might order one party to provide access to a construction site for inspection before the full hearing. Or grant a stay on the operation of a bank guarantee.
      
   • Partial Award:
     Often confused with interim awards, partial awards have a distinct characteristic. They're issued in arbitrations with multiple claims. A partial award definitively resolves some, but not all, of the issues submitted. While the arbitration continues for the remaining issues, the decided issues become final concerning those specific claims. Partial awards, especially those ordering payment, can be enforced like a final award under Section 36 of the ACA, giving parties a tangible outcome on specific dispute aspects.
     Example: In a contract dispute involving claims for breach of contract and intellectual property infringement, a partial award might resolve the breach of contract claim while the intellectual property claim proceeds separately.
      
   • Settlement or Consent Award:
     Arbitration encourages settlements. If parties agree to resolve their dispute during arbitration, they can ask the arbitral tribunal to record the settlement as an arbitral award on agreed terms, also known as a consent or settlement award (under Section 30 of the ACA). This formalizes the settlement agreement, giving it the same status and enforceability as a fully adjudicated award. The arbitral tribunal doesn't need to explain its decision, as the award is based on the parties' agreement, not the tribunal's independent assessment.
     Example: If parties in a business dispute reach a settlement agreement during arbitration, they can request the tribunal to issue a consent award reflecting the terms of their settlement, such as payment schedules, transfer of assets, and mutual releases.
      
   • Performance Award:
     A performance award, either interim or final, mandates specific action from one party. This could be delivering goods, transferring property, completing unfinished work, or fulfilling any contractual obligation. Enforcing a performance award can be challenging, especially if it depends on future actions or subjective compliance measurement. Tribunals often express performance obligations clearly and quantifiably or assign a monetary value for non-performance to facilitate enforcement.
     Example: In a contract for sale of land, a performance award might order a party to specifically execute the sale deed and hand over possession of the land to the other party, in accordance with the terms of the previously agreed contract.
      
   • Final Award:
     The final award concludes the arbitration, representing the arbitral tribunal's complete resolution of all submitted disputes. A valid final award must comprehensively address all issues, leaving no residual matters for future arbitration. It must be legally sound, clear, and easily interpretable for effective enforcement. The final award ends the arbitral process, subject to challenges under Section 34 of the ACA.
     Example: A final award in a construction dispute might determine the total amount owed to the contractor for completed work, including compensation for delays and variations, thereby resolving all outstanding claims between the parties.
      
   • Additional Award:
     After the final award, clarification or resolution of residual issues may be needed. Section 33 of the ACA allows either party to seek an additional award within a specific period to:
     • Clarify aspects of the final award, ensuring understanding of implications and obligations.
     • Correct computational, clerical, or typographical errors.
     • Address claims presented but omitted from the final award.
     The tribunal can also correct errors on its own initiative within a timeframe. An additional award becomes part of the original final award with the same legal force and effect.
     Example: If a final award inadvertently omits to award interest on the principal amount, the parties may apply for an additional award to include the forgotten interest component.
      
2. Interplay and Significance:
   These diverse arbitral award categories highlight the arbitral process's flexibility and adaptability. Interim awards facilitate smooth proceedings, partial awards provide early resolution, settlement awards promote amicable solutions, performance awards enforce contractual obligations, final awards conclude the dispute, and additional awards ensure clarity and completeness. Understanding the award's nature is crucial for determining enforceability, challenge timelines, and subsequent steps.

Conclusion:
Arbitral awards are a spectrum of decisions tailored to arbitration's specific needs and stages. The ACA recognizes this diversity, providing a framework for interim, partial, settlement, performance, final, and additional awards. Each type is essential for efficient and effective dispute resolution through arbitration. Understanding these categories is crucial for parties, legal practitioners, and those interested in arbitration's intricacies. The nuanced distinctions highlight the arbitral process's dynamic nature and ability to address multifaceted disputes comprehensively and pragmatically.

Written By: Md.Imran Wahab, IPS, IGP, Provisioning, West Bengal
Email: [email protected], Ph no: 9836576565