In exceptional circumstances when any award passed or likely to be passed might become meaningless by wastage or alienation of the property in arbitration or otherwise, the court passes orders of interim protection to prevent irretrievable injury and grave injustice. The interim remedy is also intended to preserve status quo or the rights of the parties appearing on a prima facie case.
A party to the arbitration agreement can, before or during arbitration or at any time even after the award but before its enforcement or execution, apply to the court for interim measures of protection.
Such interim measures of protection includes: -
Preservation, interim custody or sale of any goods that is the subject of arbitration agreement.
Securing the monetary stake or amount in dispute in arbitration
Preservation, detention or inspection of any property or matter, which is the subject of dispute in arbitration
Interim injunction or appointment of a receiver
Such other just and convenient interim measures of protection.
An applicant seeking intervention of the court under this section is obliged to take immediate steps for commencement of arbitration expeditiously. Such avowed intention shall also appear in the application for interim measures. In case of delay or inaction the court can vacate any interim order of protection passed at his instance.
