KSLU Solved Question Papers
Alternative Dispute Resolution
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 8
2016 Dec Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 8 Alternative Dispute Resolution 2016 Dec Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2016 Dec examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2016 Dec examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2016 Dec examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 2 hours · Total marks 60 · 11 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1What is arbitration award ? Narrate the essentials of an arbitration award.[9]
Answer
For full marks, cover: what an arbitral award is (the Act gives no full definition; section 2(1)(c) says it includes an interim award) and its kinds (final, interim, additional, on agreed terms); the essentials under section 31 of the Arbitration and Conciliation Act 1996: writing, signature (majority with reasons for a missing signature), reasons (Dyna Technologies), date and place, delivery of a signed copy; the essentials from the rest of the Act and the case law: made in time (section 29A), within the reference (section 34(2)(a)(iv)), decided by the contract and the law (section 28), certain and final, interest and costs (sections 31(7), 31A), not against public policy (Ssangyong); the effect of a valid award (sections 35, 36; Gayatri Balasamy); conclusion.
What an arbitral award is
An arbitral award is the decision of an arbitral tribunal on the dispute referred to it. It binds the parties as a court's judgment would. The Act does not fully define the term. It only says that "arbitral award" includes an interim award (section 2(1)(c) of the Arbitration and Conciliation Act 1996).
An award may be:
- final, deciding all the claims;
- interim, deciding any matter on which a final award could be made (section 31(6));
- additional, on claims presented but left out of the award (section 33(4));
- on agreed terms, recording a settlement the parties reach during the arbitration (section 30).
Essentials laid down by section 31
1. In writing. "An arbitral award shall be made in writing" (section 31(1)). An oral decision is not an award.
2. Signed. The members of the tribunal must sign the award (section 31(1)). Where there is more than one arbitrator, the signatures of the majority are enough, "so long as the reason for any omitted signature is stated" (section 31(2)).
3. Reasoned. The award "shall state the reasons upon which it is based" (section 31(3)). There are two exceptions: the parties agreed that no reasons are needed, or it is an award on agreed terms. In Dyna Technologies Pvt Ltd v. Crompton Greaves Ltd, decided on 18 December 2019, the Supreme Court said the mandate is "reasoning which is intelligible and adequate". A reasoned award must be "proper, intelligible and adequate". Unintelligible reasons are as bad as no reasons. The award in that case mixed up facts and arguments and was held "unintelligible and cannot be sustained".
4. Dated, with the place stated. The award must state its date and the place of arbitration fixed under section 20. It is deemed to be made at that place (section 31(4)). The date matters for interest and limitation; the place decides which court supervises the award.
5. Delivered. "After the arbitral award is made, a signed copy shall be delivered to each party" (section 31(5)). Time for correction (section 33) and for a challenge (section 34(3)) runs from receipt.
Essentials from the rest of the Act
6. Made in time. In a domestic arbitration the award must be made within twelve months from the completion of pleadings (section 29A(1)). The parties may extend this by six months (section 29A(3)). After that, the arbitrator's mandate ends unless the court extends the time (section 29A(4)).
7. Within the reference. The award must decide only the disputes submitted. An award that "deals with a dispute not contemplated by or not falling within the terms of the submission" may be set aside, at least for the excess part (section 34(2)(a)(iv)).
8. Decided by the contract and the law. The tribunal must apply the substantive law in force in India in a domestic arbitration (section 28(1)(a)). It must "take into account the terms of the contract and trade usages" (section 28(3)).
9. Certain and final. The award must state clearly who pays what to whom, or who must do what. It must decide every claim referred, so nothing is left for another hearing. A vague award cannot be enforced as a decree.
10. Interest and costs. Where money is awarded, the tribunal may add pre-award interest at a reasonable rate (section 31(7)(a)). Unless the award directs otherwise, the sum carries post-award interest at two per cent above the current rate (section 31(7)(b)). Costs are fixed under section 31A (section 31(8)).
11. Not against public policy. The award must not be induced by fraud or corruption. Nor may it conflict with the fundamental policy of Indian law or the most basic notions of morality or justice (section 34(2)(b)(ii), Explanation 1). In Ssangyong Engineering and Construction Co Ltd v. National Highways Authority of India, AIR 2019 SC 5041, the majority award applied guidelines issued on one side alone and never disclosed in the arbitration. The Supreme Court held that this created a new contract, against fundamental principles of justice, and set the award aside.
The effect of a valid award
A valid award "shall be final and binding on the parties and persons claiming under them" (section 35). Once the time for a challenge has passed, it is enforced "in the same manner as if it were a decree of the court" (section 36(1)). It can be attacked only by an application under section 34.
Even then the court cannot rewrite it. In Gayatri Balasamy v. ISG Novasoft Technologies Ltd, 2025 INSC 605, a Constitution Bench held by majority that a court has only "a limited power" to modify an award. It may sever an invalid part, correct clerical or computational errors, and adjust post-award interest in some cases. So the tribunal must get the essentials right the first time.
Conclusion. An arbitral award is the tribunal's binding decision on the dispute referred, final or interim. To be valid it must be written, signed and reasoned, and must state its date and place. A majority's signatures suffice if the reason for a missing one is stated, and each party must receive a signed copy. It must also be made in time, stay within the reference, follow the contract and the law, be certain and final, and respect public policy. Such an award is binding under section 35 and enforceable as a decree under section 36.
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