The main law in India that governs arbitration is the Arbitration and Conciliation Act 1996. Section 9, which talks about temporary measures by courts, is one of the most important parts of the law. Temporary reliefs called interim measures are given to protect the rights of parties before, during or after an arbitration award but before it is enforced.
In other words, until the arbitral tribunal is fully formed or until its award is enforced, a party can go to court for immediate protection of its interests under Section 9 of Arbitration and Conciliation Act. This rule makes sure that arbitration stays useful and fair especially when one party could get hurt while waiting for the tribunal.
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What is Section 9 of Arbitration and Conciliation Act?
In Section 9, courts are given the power to protect people temporarily. In other words, the court can issue temporary orders to protect property, evidence or money matters that are connected to the dispute. These rules will stay in place until the arbitral tribunal takes over or until the award is carried out.
The main goal of Section 9 is to support arbitration proceedings and make sure that parties don't suffer irreparable harm while the arbitral tribunal is being formed or the arbitration process is being finished.
Scope of Section 9 Arbitration and Conciliation Act
The scope of Section 9 is wide and covers relief before, during and after arbitration. It ensures that parties have quick access to judicial protection whenever needed.
Section 9 of Arbitration and Conciliation Act can be invoked
Before commencement of arbitration: A party can approach the court for urgent protection even before the arbitration begins, provided they start arbitration within 90 days of the court order.
During arbitration: While arbitration is ongoing, parties may seek interim relief if necessary to protect their rights.
After award but before enforcement: Even after the tribunal gives its award, courts can grant interim measures to ensure the award is not defeated before enforcement.
Interim Measures Under Section 9
Courts under Section 9 can order a variety of interim measures, depending on the facts of the case. Some common examples include
Appointment of a guardian for a minor or a person of unsound mind in arbitration proceedings.
Preservation, custody, or sale of goods that are the subject matter of the arbitration.
Securing the amount in dispute, such as directing a party to deposit money in court.
Detention or inspection of property, allowing samples or conducting experiments.
Interim injunctions, such as restraining a party from selling assets.
Appointment of a receiver to manage property or assets during the dispute.
These measures ensure that the subject matter of arbitration remains protected and enforceable.
Procedure for Filing an Application Under Section 9
The procedure for invoking Section 9 of Arbitration Act generally includes
Application to Court: A party files an application before the competent court having jurisdiction over the dispute.
Notice to Other Party: In most cases, courts issue notice to the opposite party unless urgent relief is required.
Court’s Satisfaction: The court examines whether the relief sought is necessary to protect the interests of the applicant.
Grant of Relief: If satisfied, the court grants interim measures that remain in force until modified or replaced by the arbitral tribunal.
Commencement of Arbitration: If the application is made before arbitration begins, the applicant must commence arbitration within 90 days, as per the 2015 Amendment.
Judicial Approach to Section 9
Indian courts have interpreted Section 9 broadly to ensure fairness. Some important judicial points include
Courts grant Section 9 relief only when there is a valid arbitration agreement.
Relief should not duplicate or conflict with powers of the arbitral tribunal under Section 17 (interim measures by tribunal).
The remedy under Section 9 is discretionary, meaning courts weigh the balance of convenience, irreparable injury and prima facie case before granting relief.
Amendments to Section 9 of Arbitration Act
The 2015 Amendment to the Arbitration and Conciliation Act introduced significant changes to Section 9
If Section 9 relief is granted before arbitration begins, the arbitration must be commenced within 90 days or within a further time decided by the court.
The amendment strengthened the role of arbitral tribunals under Section 17, reducing dependence on courts for interim measures.
These changes were aimed at minimizing judicial interference and encouraging party autonomy in arbitration.
Importance of Section 9 Arbitration and Conciliation Act
Section 9 plays a crucial role in arbitration for the following reasons
It provides urgent relief before the arbitral tribunal is formed.
It ensures protection of assets, property, and evidence.
It prevents parties from misusing the time before arbitration to frustrate the process.
It balances judicial support with arbitral independence by allowing interim measures while respecting the tribunal’s authority.
Key Case Laws on Section 9
Judicial interpretations have played an important role in shaping the scope of Section 9 of Arbitration and Conciliation Act. Courts in India have clarified when and how interim measures can be granted, ensuring fairness and consistency in arbitration proceedings. Here are some important Section 9 of Arbitration and Conciliation Act case laws
1. Sundaram Finance Ltd. v. NEPC India Ltd. (1999)
The Supreme Court said that relief under Section 9 can be given even before the arbitration process starts. This case proved that courts can step in early to protect the things that are being arbitrated.
2. Firm Ashok Traders v. Gurumukh Das Saluja (2004)
The Court said that the right to use Section 9 comes from the arbitration agreement, not the arbitration process itself. It made it clear that temporary measures can be used as long as there is a valid arbitration agreement.
3. Shree Subhlaxmi Fabrics v. Chand Mal Baradia (2005)
In this case, the Court made it clear that temporary protection is given to keep property or evidence related to arbitration safe. It showed how important it is to keep the subject safe so that the award stays valid.
4. Bhatia International v. Bulk Trading S.A. (2002)
The Supreme Court said that Section 9 of the Arbitration Act now covers international business arbitrations as well, unless the parties agree otherwise. This decision meant that interim measures could be used in more than just domestic disputes.
5. Post-2015 Amendment Cases
Courts made it clearer after the 2015 Amendment that arbitration must start within 90 days of a Section 9 order. This makes sure that the parties don't take advantage of temporary relief to avoid or delay arbitration proceedings.
Summary
Section 9 of the Arbitration and Conciliation Act 1996 is very important because it lets courts take temporary steps to protect people's rights and property. It can be used before the arbitration starts, during the proceedings or after the award but before it is put into effect. As a reliable alternative to going to court, Section 9 makes arbitration stronger by protecting the things that are in dispute. With the help of court rulings and the 2015 change, Section 9 continues to strike a balance between judicial support and arbitral independence. This keeps India's arbitration system fair and effective.
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Section 9 of Arbitration and Conciliation Act: FAQs
Q1. What is Section 9 of Arbitration and Conciliation Act?
Section 9 arbitration act allows parties to seek interim measures by courts to protect rights and property before, during or after arbitration but before award enforcement.
Q2. What are interim measures under Section 9?
Interim measures include injunctions, securing disputed amounts, preserving property, appointing receivers or selling goods to safeguard the arbitration process.
Q3. Can Section 9 be used before arbitration starts?
Yes, Section 9 can be invoked even before arbitration begins, but arbitration must commence within 90 days of the court order.
Q4. What is the difference between Section 9 and Section 17?
Section 9 gives courts the power to grant interim relief, while Section 17 allows the arbitral tribunal to grant interim measures once it is constituted.
Q5. Does Section 9 apply to international arbitration?
Yes, Indian courts can grant interim relief under Section 9 even in international commercial arbitration, provided India is the seat of arbitration or the agreement allows it.
