Report No. 76
8.2. Section 27.-
Section 27(1) provides that unless a different intention appears in the arbitration agreement, the arbitrators or umpire may, if they think fit, make an interim award, and sub-section (2) of the same section provides that references in the other provisions to an award include an interim award.
No changes of substance are required in this section. But it may be useful to elaborate several aspects of interim awards. Interim awards, as understood in English case-law on the corresponding provision1 of the Arbitration Act, 1950, have a wide scope. The award may be a direction analogous to an interlocutory injunction which it to be operative during the pendency of the arbitration proceedings,2 or the award may direct payment which is to be adjusted in part satisfaction of a large claim-the larger claim being left to be quantified by the final award.3
Then, there is a third example of interim award, a determination of some matter in a suit, leaving other matters in issue to be determined by a later ward. An example is furnished by an English case,4 in which there was a claim for damages for breach of two contractors, and the interim award determined the claim in regard to the first contract only. The arbitrator in that case was empowered to make one or more awards at his discretion.
1. Compare section 14, Arbitration Act, 1960 (English).
2. Wringtson v. Bywater, (1838) 150 English Reports 1114.
3. Woodrow v. Trawler (Whitesh and Crinsby) Ltd., (1930) KB 176.
4. Wrightson v. Bywater, (1838) 150 English Reports 1114; Halsbury's 4th Edn., Vol. 2, p. 609 footnote 6.