Executive Summary
“Section 9 of the Arbitration and Conciliation Act, 1996 serves as a vital safeguard for parties seeking emergency interim relief before or during arbitral proceedings. This analysis explores modern judicial standards, emergency arbitrator recognition, and procedural strategies for preserving assets.”
1. The Statutory Purpose & Threshold Requirements
Under Section 9 of the Arbitration and Conciliation Act, 1996, a party may approach a competent court for interim measures before, during, or after arbitral proceedings but prior to the enforcement of the award. The primary objective is to prevent irreparable injury and preserve the subject matter of the dispute.
Courts apply traditional equitable tests—prima facie case, balance of convenience, and irreparable loss—supplemented by the stringent principles governing Order 38 Rule 5 of the Code of Civil Procedure (CPC) when dealing with asset attachments.
2. Post-2015 Amendments & Mandate to Initiate Arbitration
With the insertion of Section 9(2) via the 2015 Amendment Act, a party obtaining interim protection must commence arbitral proceedings within 90 days from the date of the order. The Supreme Court has repeatedly emphasized that Section 9 cannot be misused to stall commercial transactions without a genuine intent to arbitrate.
Once the Arbitral Tribunal is duly constituted, Section 9(3) restricts judicial interference unless the court finds that remedies under Section 17 before the tribunal would be ineffective.
3. Strategic Advice for Commercial Litigants
Litigants must ensure that applications for interim protection are backed by cogent documentary evidence proving a real risk of dissipation of assets. Broad allegations without specific asset tracing or contractual breach evidentiary proof are routinely rejected by Commercial Courts.