Timeline:

00:00 – Introduction
01:35 – Dispute between parties - need for Interim Measure
02:28 – Invoking Arbitration Clause by serving Notice to other party.
03:04 – Establishing intent of invoking Arbitration
03:45 – Application u/s 9 for interim relief based on suspicion of breach of agreement
04:30 – Requirements to obtain interim relief
04:40 – The party must have a prima facie case
05:08 – Balance of Convenience in favour of grant of Interim relief
05:26 – Irreparable loss
06:49 – Courts’ Jurisdiction
09:51 – tenure of Interim Relief
10:58 – Section 9
14:17 – Interim Relief for other reasons
14:47 – Conclusion

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Presented by: Prashant Kanha, Advocate on Record, Supreme Court of India, New Delhi.
He is based out of Delhi and practices law mainly in the Supreme Court of India and High Court of Delhi, conducts arbitration as an arbitrator as well as a lawyer besides practicing before many other courts and Tribunals across India in various fields with the help of his team of lawyers.

IN CASE OF ANY OBJECTION, DISCREPANCY, MISINFORMATION, OR CLARIFICATION IN/ ABOUT THE INFORMATION IN THE VIDEO CONTACT AT +91 9599732224 or +91 9910843777 over WhatsApp or call on +91 8920718595.
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Abstract:

Section 9 (Arbitration and Conciliation Act, 1996)

"Interim measures, etc. by Court.—A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court—
(i) for the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of the following matters, namely:—
(a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;
(b) securing the amount in dispute in the arbitration;
(c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it."

Interim protections are necessary for protecting and preserving assets and other subject matters of dispute from being siphoned off during the pendency of arbitral proceedings.

The general principles while granting interim relief are:
(i) prima facie case
(ii) balance of convenience in favor of grant of interim relief
(iii) irreparable injury or loss to the applicant for interim relief.

[The grant of interim relief should not result In irreparable harm to the other party.]

A Ayyaswamy v A Paramasivam (2016) 10 SCC 386

In this case, the Supreme Court held that the power of courts to grant interim relief under Section 9 is not limited to cases where the substantive claim is arbitrable. The court further held that the arbitrator has the power to modify, revoke or terminate the interim relief granted by the court, but only after giving the other party an opportunity to be heard.

Essar House (P) Ltd. V Arcellor Mittal Nippon Steel India Ltd. (2022) SCC OnLine SC 1219.

48. All that the Court is required to see is, whether the applicant for interim measure has a good prima facie case, whether the balance of convenience is in favour of interim relief as prayed for being granted and whether the applicant has approached the court with reasonable expedition.

49. If a strong prima facie case is made out and the balance of convenience is in favour of interim relief being granted, the Court exercising power under Section 9 of the Arbitration Act should not withhold relief on the mere technicality of absence of averments, incorporating the grounds for attachment before judgment under Order 38 Rule 5 of the CPC.

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All due care has been taken by the presenter to stay accurate however, the interpretation of the law is based on specific facts and circumstances as such given information may not be fit for all as such always seek independent legal advice.
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