Can I get urgent interim relief from a court before or during arbitration?

Question

I fear the other party will dispose of assets or breach the contract before my arbitration proceedings even begin. I want to know if I can approach a court urgently. I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Arbitration and Conciliation Act 1996, Section 9 is the starting point for this corporate law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

Section 9 empowers a party to approach a competent court for interim measures of protection, such as securing the amount in dispute, preserving property, or granting an interim injunction, before, during or after arbitral proceedings but before enforcement of the award.

Courts apply principles analogous to Order XXXIX of the Code of Civil Procedure, examining prima facie case, balance of convenience and irreparable harm before granting relief under Section 9.

Section 9(3), introduced by the 2015 amendment, restricts courts from entertaining a Section 9 application once the arbitral tribunal has been constituted, unless the court finds that remedy under Section 17 before the tribunal would not be efficacious.

Section 17 gives the arbitral tribunal itself the power to grant similar interim measures once constituted, and such tribunal orders are enforceable in the same manner as a court order under the Code of Civil Procedure.

A party granted interim relief under Section 9 before arbitration begins must commence arbitral proceedings within ninety days of the court's order, or such other time the court fixes, failing which the interim order can lapse.

What to do next: 1) File the Section 9 application before the court having jurisdiction over the seat as soon as urgency arises; 2) Support the application with clear evidence of prima facie case and imminent irreparable harm; 3) Invoke arbitration and constitute the tribunal within the time the court sets after interim relief is granted; 4) Approach the tribunal under Section 17 for further interim relief once it is constituted.

If you are unsure whether your facts fall inside Arbitration and Conciliation Act 1996, Section 9, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in corporate law.