HC: Challenge to an order of payment of costs to opp side during Pendency of Arbitral proceedings is not an interim award on costs and cannot be challenged as an interim award under Section 34 [Read Order]

High Court of Delhi held that a challenge to an order of payment of costs to the opposite side during the pendency of arbitral proceedings is not an interim award on costs and cannot be challenged as an interim award under Section 34 of Arbitration & Conciliation Act, 1996

This petition was filed under Section 34 of the Arbitration & Conciliation Act, 1996 impugns the order, the Arbitral Tribunal has imposed a cost while allowing the application filed by the petitioner.

A preliminary objection has been raised by the respondent and also by this Court on the maintainability of the petition under Section 34 of the Act of 1996 as the impugned order is not an interim award.

Mr. Aseem Chaturvedi, learned counsel for the respondent contended that the order, which has been passed is only a procedural order on an application filed by the petitioner.

The plea of Mr. Datta based on Section 31A of the Act that the impugned order, decides the issue of “cost” between the parties, and as such as an interim award, is misplaced, firstly, the payment of “cost” was not an issue between the parties secondly it has been imposed by the Arbitral Tribunal on the finding of delay. In order to qualify as an interim award so as to challenge it under Section 34, the subject matter of arbitration and the rights of the parties in respect thereof have to be finally decided, which is not the case here.

High Court held that the order does not qualify to be an interim award, the petition under Section 34 of the Act of 1996 is not maintainable.

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