Judgment or final decision of an arbitrator or arbitrators on all matters referred to arbitration is called the arbitral award or award. The document containing the decision of the arbitrators is also called award. The general rule is that, the award will be enforceable on all the disputed parties. The award made by the arbitrator or the arbitration tribunal is regarded as the final decision as of the verdict of the court of law.
In Krishna Chandra Jha Vs. Dinesh Bhakta Shrestha court held that Arbitrator can not go beyond the terms of the contract while delivering the award.1
Essentials of Valid Award
1. The award must be made in written form (Sec. 27)
The award must be made in written form. Although there is not a particular format of award but it should contain the following things under it:
- Brief statement of the matters referred.
- Decision of the arbitrator and its basis and grounds.
- Existence of jurisdiction, if it is questioned by the party.
- Matters as regards to the amount to be realized or compensated.
- Signature of the arbitrators.
- Place and date of award etc.
2. Time limitation for making award
The award must have been made within 120 days from the date of reference. Unless otherwise mentioned in the agreement, the arbitrator should pronounce his award ordinarily within that prescribed time period and the award must be issued within 30 days after completion of oral hearing of the dispute.
3. The award must be certain and final
The award must not be vague and unclear. It must be certain and final because a repetition of award is not accepted in accordance with the Sec. 29, except correction of a normal error. In case of any difference in opinion of members of arbitration may put a note of decent.
i. Binding force
The award has a fully binding force to the disputing parties.
ii. The award should not be repeated
Generally award should not be repeated, otherwise it becomes void. But if a party dissatisfied with the award made, he may, according to the Sec. 30 (1), apply appeal in the appellate court within 35 days from the date of hearing or receiving a copy of award, for allowing permission to revoke it and the court may ask the arbitrator to make the award void or to repeat the decision so made.
Execution of Award
The award has a fully binding force. The concerning parties must perform or follow the award in time. Execution of award is enforced in the following modes:
1. Execution by the parties (Sec. 31):
The award is obeyed by the disputing parties morally and legally. The parties have to execute the award within 45 days from the date of receipt of a copy of the award.
2. Execution of award by the court (Sec. 32) :
In case of failure of the parties to execute the award within 45 days, either party can file an application to the District Court within 30 days from the date of expiry of time limit prescribed for the purpose for having the award executed. And on receipt of such application filed in this way, the District Court has to execute or enforce the award ordinarily within 30 days as its own judgment.
Execution of Foreign Award (Sec. 34)
Any party which wishes to have an award made in a foreign county enforced in Nepal shall submit a petition to the Appellate Court, along with the following documents:
- The original copy of the arbitrator’s award or a certified copy.
- The original copy of the agreement or a certified copy.
- In case the arbitrator’s decision is not in the Nepali Language, an official translation there of in the Nepali language.