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The Arbitration and Conciliation Act, 1996: page 22

The Arbitration and Conciliation Act, 1996, India Code delivered snapshot 6fb32e5ffe258174, physical page 22. Unreviewed extraction.

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     1
     [(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry
interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award,
from the date of award to the date of payment.
   Explanation.—The expression “current rate of interest” shall have the same meaning as assigned to it
under clause (b) of section 2 of the Interest Act, 1978 (14 of 1978).]
     2
      [(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.]
     Explanation.—For the purpose of clause (a), “costs” means reasonable costs relating to—
               (i) the fees and expenses of the arbitrators and witnesses,
               (ii) legal fees and expenses,
               (iii) any administration fees of the institution supervising the arbitration, and
             (iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral
          award.
     3
     [31A. Regime for costs.—(1) In relation to any arbitration proceeding or a proceeding under any of
the provisions of this Act pertaining to the arbitration, the Court or arbitral tribunal, notwithstanding
anything contained in the Code of Civil Procedure, 1908 (5 of 1908), shall have the discretion to
determine—
          (a) whether costs are payable by one party to another;               e
          (b) the amount of such costs; and                                od
          (c) when such costs are to be paid.                             aC
     Explanation.—For the purpose of this sub-section, “costs” means reasonable costs relating to—
                                                                di
          (i) the fees and expenses of the arbitrators, Courts and witnesses;
          (ii) legal fees and expenses;
                                                           In
          (iii) any administration fees of the institution supervising the arbitration; and
         (iv) any other expenses incurred in connection with the arbitral or Court proceedings and the
     arbitral award.
     (2) If the Court or arbitral tribunal decides to make an order as to payment of costs,—
          (a) the general rule is that the unsuccessful party shall be ordered to pay the costs of the
     successful party; or
          (b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing.
    (3) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances,
including—
          (a) the conduct of all the parties;
          (b) whether a party has succeeded partly in the case;
         (c) whether the party had made a frivolous counter claim leading to delay in the disposal of the
     arbitral proceedings; and
         (d) whether any reasonable offer to settle the dispute is made by a party and refused by the other
     party.
    (4) The Court or arbitral tribunal may make any order under this section including the order that a
party shall pay—
          (a) a proportion of another party’s costs;
          (b) a stated amount in respect of another party’s costs;

1. Subs. by Act 3 of 2016, s. 16, for cl. (b) (w.e.f. 23-10-2015).
2. Subs. by s. 16, ibid., for sub-section (8) (w.e.f. 23-10-2015).
3. Ins. by s.17, ibid. (w.e.f. 23-10-2015).
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