In his arbitration decision, the arbitrator referred to the remedies contained in Section 198B(a) (a) of the LRA and ordered PRASA to pay all unpaid bonuses and previous contributions from the pension fund after April 1, 2015. PRASA has also been ordered to ensure that employees become members of their pension funds. Recently, a single Judge Bench from the Delhi High Court, in the case of Anuradha SA Investments LLC – Anr. v Parsvnath Developers Limited – Ors.4 also examined the concept of a transaction agreement as part of an arbitration award. The Court had the opportunity to consider the enforcement of a settlement agreement as an arbitral award. The respondents had challenged the continuation of the petition on the grounds that the transaction agreement was not an agreement under Section 73 of the Act or the conciliation procedure under Part III of the Act. In addition, they have not received a certified copy of the transaction agreement and this agreement is not sufficiently stamped. 3. An arbitral award may only be carried out in paragraph 1, if the Director has certified that the award is an arbitral award under the subsection (1). (1) An application for certification of an arbitral award must be filed- (2) When an arbitration award orders a party to pay a sum of money, the amount of interest is collected from the day of the award at the same rate as the prescribed rate from time to time in relation to the decision of Section 2 of the Prescribed Rate of Interest Act, 1975 (Law 55 of 1975) unless the arbitration award provides for something else. He adds: “It is well established that a legal fiction cannot be extended beyond the purpose for which it is created. Section 74 of the Act creates a legal fiction to impose the status and effect of a Section 73 transaction agreement for attribution.
The objective is clearly to allow the application of such agreements as an arbitral award without further adjudication procedure. Legal fiction cannot be extended to other statutes. It should be noted that not all agreements or agreements between the parties, in any form, acquire the status of a transaction agreement within the meaning of Section 73 of the Act. The court upheld the request for review, verified and quashed the sentence.