Arbitration and Conciliation Act, 1996
Section 17 of the Arbitration Act: Interim Measures Ordered by Arbitral Tribunal
Section 17 of the Arbitration and Conciliation Act, 1996 empowers an arbitral tribunal to grant interim measures of protection during arbitral proceedings. These measures include preservation or sale of goods, securing the amount in dispute, protection and inspection of property, interim injunctions, appointment of a receiver and other measures that are just and convenient.
Meaning and purpose of Section 17
Section 17 gives the arbitral tribunal statutory authority to protect the subject-matter of the arbitration and preserve the effectiveness of the proceedings while the dispute is pending.
The tribunal's powers under Section 17(1) include measures comparable to those a Court may grant for the purposes of and in relation to proceedings before it. Section 17(2) strengthens those powers by providing for enforceability of the tribunal's order in the same manner as a Court order under the Code of Civil Procedure, 1908, subject to any order passed in appeal under Section 37.
- Section 17(1)(i): appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings.
- Section 17(1)(ii)(a): preservation, interim custody or sale of goods forming the subject-matter of the arbitration agreement.
- Section 17(1)(ii)(b): securing the amount in dispute.
- Section 17(1)(ii)(c): detention, preservation or inspection of property or things relevant to the dispute, including entry, samples, observations or experiments where necessary or expedient.
- Section 17(1)(ii)(d): interim injunction or appointment of a receiver.
- Section 17(1)(ii)(e): other interim measures that appear just and convenient.
- Section 17(2): enforceability of the tribunal's order as an order of the Court under the Code of Civil Procedure, 1908, subject to Section 37 appeal orders.
Interim measures available under Section 17
| Measure | What Section 17 permits |
|---|---|
| Guardian | Appointment of a guardian for a minor or person of unsound mind for the purposes of the arbitral proceedings. |
| Goods | Preservation, interim custody or sale of goods that are the subject-matter of the arbitration agreement. |
| Security | Securing the amount in dispute in the arbitration. |
| Property or evidence | Detention, preservation or inspection of property or things relevant to the dispute, including entry on land or buildings, samples, observations or experiments where necessary or expedient. |
| Injunction or receiver | Grant of an interim injunction or appointment of a receiver. |
| Other protection | Any other interim measure of protection that appears just and convenient. |
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 (5 of 1908), in the same manner as if it were an order of the Court.
How is an order under Section 17 enforced?
Section 17(2) provides that, subject to any orders passed in an appeal under Section 37, an order made by the arbitral tribunal under Section 17 is deemed to be an order of the Court for all purposes.
It is enforceable under the Code of Civil Procedure, 1908 in the same manner as if it were an order of the Court. This gives Section 17 orders direct statutory enforceability.
Appeal against a Section 17 order
Section 17(2) expressly refers to orders passed in an appeal under Section 37. Appeals against specified orders granting or refusing to grant an interim measure under Section 17 are governed by Section 37 of the Arbitration and Conciliation Act, 1996.
Important amendments to Section 17
2015 amendment
Section 17 was substituted by Section 10 of the Arbitration and Conciliation (Amendment) Act, 2015, with effect from 23 October 2015. The substituted provision materially strengthened the tribunal's interim-measure powers and introduced the statutory enforcement mechanism now contained in Section 17(2).
2019 amendment
The Arbitration and Conciliation (Amendment) Act, 2019 omitted the words that had allowed an application under Section 17 after the making of the arbitral award but before enforcement under Section 36. The omission took effect from 30 August 2019. Accordingly, the current text refers to applications made during the arbitral proceedings.