The Scope And Application Of Equitable Reliefs In Arbitration Proceedings
- IJLLR Journal
- Oct 4
- 2 min read
Ojal Jain, SVKM's NMIMS, School of Law, Indore
EQUITABLE RELIEFS: CONCEPTUAL FRAMEWORK AND LEGAL NATURE
In the contemporary economic landscape, characterized by rapid development and increasing complexity, disputes often encompass issues that extend well beyond monetary claims. The efficacy of dispute resolution mechanisms depends upon their capacity to deliver comprehensive and equitable justice. While arbitration was once primarily viewed as a forum for commercial specialists to resolve factual disagreements, it has notably evolved in response to changing needs. This transformation is particularly evident in the expanding recognition of arbitral tribunals’ authority to grant equitable remedies, not merely financial awards.1 Still, judicial authority in this area is not boundless. It operates at the complex intersection of private contracts and public law, balancing individuals’ freedom to contract with the judiciary’s duty to intervene.
This article examines the scope and limits of such powers within the Indian legal system. The analysis delves into the framework of the Arbitration and Conciliation Act, 1996, with a particular focus on the judiciary’s dynamic role in defining its boundaries. By placing India’s developments alongside international experiences, it becomes clear that while the capacity to deliver equitable outcomes is essential for arbitration to fulfil its purpose of justice, reliably exercising this authority is far from straightforward.
To appreciate this development, the unique nature of these remedies must be recognized. While monetary compensation typically follows automatically when a breach is proven, equitable relief is rooted in a different tradition originating from the English Court of Chancery.2 These remedies are inherently discretionary, non-monetary, and operate in personam; they are directed at specific individuals, compelling them either to do something or to stop doing it. For instance, with an order of specific performance, the court requires a party to fulfil their contractual obligations when the subject matter is unique and financial compensation would not be sufficient.
