The Arbitral Award: Form, Contents, Reasons, Interest and Costs

In one line

An award must be written, signed, dated and reasoned, must say where it was made, and a signed copy must go to each party; and the tribunal decides interest and costs.

In exam wording: section 31 of the Arbitration and Conciliation Act 1996 prescribes the form and contents of an arbitral award, and section 31A establishes a regime for costs applying to both the Court and the arbitral tribunal.

Section 31(1) and (2): writing and signature

Section 31(1): an arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.

Section 31(2): in proceedings with more than one arbitrator, the signatures of the majority of all the members shall be sufficient so long as the reason for any omitted signature is stated.

Sub-section (2) is the practical answer to the arbitrator who refuses to sign, or who has died or become unavailable. The award still stands on the majority's signatures, provided the reason for the missing signature is stated in it. Leaving the reason out is a defect in the award itself.

Section 31(3): reasons, and the two exceptions

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 under section 30.

The default is reasoned, which is one of the biggest differences from the 1940 Act, under which unreasoned awards were common and almost impossible to review intelligently.

Why reasons matter here more than they look. An unreasoned award cannot really be tested under section 34 at all: a court cannot see whether the tribunal went outside the reference, ignored the contract, or decided on a ground nobody argued. Reasons are what make the limited review in section 34 meaningful.

The exceptions are narrow. Agreement that no reasons be given, which is rare and unwise; and an award on agreed terms, where the parties' agreement is the reason.

Section 31(4) and (5): date, place, and delivery

Section 31(4): the award shall state its date and the place of arbitration as determined in accordance with section 20, and the award shall be deemed to have been made at that place.

The deeming matters. Wherever the tribunal physically signed, the award is made at the seat, which chapter 320 distinguishes from the venue. That in turn fixes which courts supervise it.

Section 31(5): after the award is made, a signed copy shall be delivered to each party.

Small provision, large consequences. The date of receipt of the signed copy starts the thirty day clock in section 33 for correction, and the three month clock in section 34(3) for setting aside. Delivery to an advocate or an employee may not be delivery to the party; this is a recurring source of limitation disputes.