Report No. 176

2.40.4 Interim Award:

Suggestion to delete words rejected.

It has been suggested that the Act uses the words "interim award" in sec.2(1)(c), 31(6) and interim measure in sec.17 and 37(2)(d) etc. and this is confusing. It is said that the word "interim award", it is said, was treated as confusing in the D.A.C. Report in England and was dropped.

We do not think it necessary to drop the word "interim award" from sec. 2(1)(c). For example, there may be cases where, an "interim award" can be straightaway be passed, having regard to the pleadings where is an admission of liability up to a particular amount of the claim. Then in such a case, an interim award can be passed straightaway in respect of the admitted amount instead of asking parties wait till all the issues are decided. The word "interim award" in sec. 2(1) (c) is, therefore, to be retained.

Again, decisions on preliminary issues under sec.13 and sec.16 by the arbitral tribunal (as proposed) can only be an 'interim order' of the tribunal. They are appealable only subject to in view of sec.5. Hence it is not likely that there will be any confusion by retention of the words 'interim awards' in sec. 2(1)(c). In fact, different statutes use different expressions. For example, prior to 1998, Art. 21 of the ICC Rules of Arbitration drew a distinction between 'partial' and 'definitive' awards.

The 1998 ICC rules similarly refer to them as 'interim, partial and final' awards (Act 2(iii)( see Fouchard para 1359). A final award would be one which terminates the proceedings and makes the arbitrators 'functus officio'. The Dutch Court of Civil Procedure, Art. 1049 provides for a final award, a partial final award or an interim award.