Unsuccessful Party Can Seek Interim Relief Under Section 9 Post-Award: Supreme Court Resolves Conflicting High Court Views

Held: The Supreme Court held that an unsuccessful party in arbitral proceedings is not barred from seeking interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 at the post-award stage before enforcement of the award. It clarified that the expression “a party” under Section 9 includes all parties to the arbitration agreement, irrespective of the outcome of the arbitration, and cannot be restrictively interpreted to mean only a successful party.

Summary: The case addressed a significant conflict among High Courts regarding whether a party that has lost in arbitration can seek interim relief under Section 9 after an award is rendered. While some High Courts had denied such relief on the ground that interim measures post-award are meant only to protect the “fruits of the award,” others had allowed such applications. The Supreme Court examined the statutory language, scheme, and purpose of Section 9 and held that it expressly permits any party to seek interim protection before, during, and after arbitration until enforcement of the award. The Court rejected restrictive interpretations adopted in judgments like Dirk India and held that such readings impermissibly rewrite the statute. It emphasized that Section 9 operates independently of Sections 34 and 36, which deal with challenge and enforcement of awards, and that denying relief would leave an unsuccessful party remediless in appropriate cases. The Court also noted that modern jurisprudence permits modification of arbitral awards and that interim relief may be necessary to preserve the subject matter pending challenge proceedings.

Decision: The Supreme Court held that unsuccessful parties are entitled to invoke Section 9 at the post-award stage, overruled contrary High Court judgments, upheld the broader interpretation of the provision, disposed of one appeal, and directed listing of connected appeals for further hearing, with all pending applications disposed of.