(1) Where the place of arbitration is situate in India,
(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for the time being in force in India;
(b) in international commercial arbitration
(i) the arbitral tribunal shall decided the dispute in accordance with the rules of law designated by the parties as applicable to the substance of the dispute;
(ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules;
(iii) failing any designation of the law under clause (a) by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute.
(2) The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if the parties have expressly authorised it to do so.
(3) In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.
Section 29 - Decision making by panel of arbitrators
(1) Unless otherwise agreed by the parties, in arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members.
(2) Notwithstanding sub -section (1), if authorised by the parties or all the members of the arbitral tribunal, questions of procedure may be decided by the presiding arbitrator.
Section 30 - Settlement
(1) It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement.
(2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.
(3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award.
(4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute.
Section 31 - Form and contents of arbitral award
(1)An arbitral award shall be made in writing and shall be signed by the membersof the arbitral tribunal.
(2)For the purposes of sub-section (1), in arbitral proceedings with more than onearbitrator, the signatures of the majority of all the members of the arbitraltribunal shall be sufficient so long as the reason for any omitted signature isstated.
(3)The arbitral award shall state the reasons upon which it is based, unless------
(a) the parties have agreed that no reasons are to be given,or
(b) the award is an arbitral award on agreed terms undersection 30.
(4) The arbitral award shall state its date and the placeof arbitration as determined in accordance with section 20 and the award shallbe deemed to have been made at that place.
(5) After the arbitral award is made, a signed copy shallbe delivered to each party.
(6) The arbitral tribunal may, at any time during thearbitral proceedings, make an interim arbitral award on any matter with respectto which it may make a final arbitral award.
(7) (a) Unless otherwise agreed by the parties, where andin so far as an arbitral award is for the payment of money, the arbitraltribunal may include in the sum for which the award is made interest, at suchrate as it deems reasonable, on the whole or any part of the money, for thewhole or any part of the period between the date on which the cause of actionarose and the date on which the award is made.
(b) A sum directed to be paid by an arbitral award shall,unless the award otherwise directs, carry interest at the rate of eighteen percentum per annum from the date of the award to the date of payment.
(8) Unless otherwise agreed by the parties,-
(a) the costs of an arbitration shall be fixed by thearbitral tribunal;
(b) the arbitral tribunal shall specify--
(i) the party entitled to costs,
(ii) the party who shall pay the costs,
(iii) the amount of costs or method of determining thatamount, and
(iv) the manner in which the costs shall be paid.
Explanation.---For the purpose of clause (a), "costs"means reasonable costs relating to-
(i) the fees and expenses of the arbitrators andwitnesses,
(ii) legal fees and expenses,
(iii) any administration fees of the institutionsupervising the arbitration, and
(iv) any other expenses incurred in connection with thearbitral proceedings and the arbitral award.
Section 32 - Termination of proceedings
(1) The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal under sub-section (2).
(2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings where
(a) the claimant withdraws his claim, unless the respondent objects to the order and the arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the dispute,
(b) the parties agree on the termination of the proceedings, or
(c) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.
(3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings.
Section 33 - Correction and interpretation of award; additional award
(1) Within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties
(a) a party, with notice to the other party, may request the arbitral tribunal to correct any computation errors, any electrical or typographical errors or any other errors of a similar nature occurring in the award;
(b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award.
(2) If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall make the correction or give the interpretation within thirty days from the receipt of the request and the interpretation shall form part of the arbitral award.
(3) The arbitral tribunal may correct and error of the type referred to in clause (a) of sub-section (1), on its own initiative, within thirty days from the date of the arbitral award.
(4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as so claims presented in the arbitral proceedings but omitted from the arbitral award.
(5) If the arbitral tribunal considers the request made under sub-section (4) to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request.
(6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5).
(7) Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under this section.