Ram Subramanian
Interim reliefs under the arbitration act cannot be given to an unsuccessful party in the arbitration proceedings.ย
๐The Bengaluru District Court, in the case of Overseas Pharma Private Limited vs Rajya Vokkaligara Sangha (Case Reference: COM.A.A. 241/2024), on 16/10/2024, highlighted this principle.
๐The court referred to a judgment by the Bombay High Court, stating that rejected claims in arbitration proceedings cannot be protected through interim reliefs under section 9 of the arbitration act.
๐Additionally, when an arbitral award is set aside under section 34, rejected claims are not decreed. The purpose of interim measures post-award is to secure property, goods, or amounts for the benefit of the enforcing party.
๐In this case, the applicant’s request for interim relief under section 9 was dismissed as the unsuccessful party cannot seek such measures. The court upheld that parties with rejected claims during arbitration proceedings cannot enforce arbitral awards under Sec.36.
๐The application was consequently rejected, emphasizing the court’s stance on interim reliefs for unsuccessful parties in arbitration.
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