Section Text
Amendment of section 31.
(i) in sub-section (7), for clause (b), the following clause shall be substituted, namely:
(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment.
Explanation. The expression current rate of interest shall have the same meaning as assigned to it under clause (b) of section 2 of the Interest Act, 1978. ; ( ii ) for sub-section ( 8 ), the following sub-section shall be substituted, namely: ( 8 ) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A. . Insertion of new section 31A. 17 . After section 31 of the principal Act, the following new section shall be inserted, namely: Regime for Cost. 31A . ( 1 ) In relation to any arbitration proceeding or a proceeding under any of the provisions of this Act pertaining to the arbitration, the Court or arbitral tribunal, notwithstanding anything contained in the Code of Civil Procedure, 1908, shall have the discretion to determine ( a ) whether costs are payable by one party to another; ( b ) the amount of such costs; and ( c ) when such costs are to be paid.
Explanation. For the purpose of this sub-section, costs means reasonable costs relating to ( i ) the fees and expenses of the arbitrators, Courts and witnesses; ( ii ) legal fees and expenses; ( iii ) any administration fees of the institution supervising the arbitration; and ( iv ) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award. ( 2 ) If the Court or arbitral tribunal decides to make an order as to payment of costs, ( a ) the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party; or ( b ) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing. ( 3 ) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, including ( a ) the conduct of all the parties; ( b ) whether a party has succeeded partly in the case; ( c ) whether the party had made a frivolous counter claim leading to delay in the disposal of the arbitral proceedings; and ( d ) whether any reasonable offer to settle the dispute is made by a party and refused by the other party. ( 4 ) The Court or arbitral tribunal may make any order under this section including the order that a party shall pay ( a ) a proportion of another party s costs; ( b ) a stated amount in respect of another party s costs; ( c ) costs from or until a certain date only; ( d ) costs incurred before proceedings have begun; ( e ) costs relating to particular steps taken in the proceedings; ( f ) costs relating only to a distinct part of the proceedings; and ( g ) interest on costs from or until a certain date. ( 5 ) An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event shall be only valid if such agreement is made after the dispute in question has arisen. . Amendment of section 34.