Section 17 of ACA : Section 17: Interim Measures Ordered By Arbitral Tribunal

Explanation using Example

Imagine a scenario where two companies, A and B, are involved in a dispute over the delivery of specialized machinery, which is the subject of an arbitration agreement. Company A claims that the machinery provided by Company B is defective and not as per the contract specifications. The machinery is crucial for Company A's operations and represents a significant financial investment.

During the arbitration proceedings, Company A is concerned that Company B might sell the disputed machinery to a third party, which would make it difficult for Company A to recover the machinery or its value if they win the arbitration. To protect its interests, Company A applies to the arbitral tribunal for an interim measure to preserve the machinery until the dispute is resolved.

The arbitral tribunal, after considering the application, orders an interim measure directing that the machinery should not be removed, sold, or otherwise disposed of by Company B during the arbitration proceedings. This order helps ensure that the machinery remains in its current state and location, safeguarding Company A's potential remedy should they prevail in the arbitration.