What is the difference between an arbitral award and a consent award in India?

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Answer By law4u team

In India, both arbitral awards and consent awards are outcomes of the arbitration process, but they differ significantly in terms of their nature and how they are arrived at. Here's a detailed comparison: Arbitral Award Definition: An arbitral award is a decision made by an arbitral tribunal at the conclusion of the arbitration proceedings. It resolves the disputes between the parties based on the evidence and arguments presented. Decision-Making Process: The arbitral tribunal conducts hearings, evaluates evidence, and listens to arguments from both parties. The tribunal then deliberates and issues a decision based on the merits of the case. Nature: It is a formal decision made by the tribunal after a thorough examination of the facts and legal arguments. It is binding on the parties and can be enforced like a court judgment. Content: The award typically includes the tribunal's findings, the reasons for the decision, and any orders or relief granted to the parties. It addresses all issues submitted for arbitration and provides a resolution based on the tribunal's judgment. Enforcement: An arbitral award is enforceable under the Arbitration and Conciliation Act, 1996, and can be challenged on limited grounds such as lack of jurisdiction, procedural irregularities, or violation of public policy. Consent Award Definition: A consent award is a settlement agreement reached by the parties during the arbitration process, which is then recorded and endorsed by the arbitral tribunal as its award. Decision-Making Process: The parties negotiate and reach a mutually agreeable settlement. The settlement agreement is submitted to the arbitral tribunal for approval and formalization as an award. Nature: It is essentially an agreement between the parties that is given the status of an arbitral award. It reflects the terms agreed upon by the parties rather than the tribunal's judgment on the merits. Content: The consent award incorporates the terms of the settlement agreement reached by the parties. It may include provisions for payment, performance, or other obligations as agreed upon by the parties. Enforcement: A consent award is enforceable in the same manner as an arbitral award under the Arbitration and Conciliation Act, 1996. It is less likely to be challenged since it is based on mutual agreement, though it can still be contested on similar grounds as other arbitral awards. Key Differences: Basis: Arbitral Award: Based on the tribunal's decision after evaluating the case. Consent Award: Based on the parties' mutual settlement agreement. Process: Arbitral Award: Involves hearings, evidence, and arguments presented to the tribunal. Consent Award: Involves negotiation and agreement between the parties, followed by tribunal endorsement. Nature: Arbitral Award: Tribunal's formal decision on the dispute. Consent Award: Parties' settlement formalized as an award by the tribunal. Challenge: Arbitral Award: Can be challenged on specific grounds like jurisdiction or procedural issues. Consent Award: Generally less prone to challenge due to mutual agreement, but still subject to legal scrutiny. In summary, an arbitral award is a decision rendered by the tribunal based on the arbitration proceedings, whereas a consent award is a settlement agreement between the parties that the tribunal endorses as its award. Both are enforceable under Indian law, but they differ in their origin and nature.

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