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    Faculty of Law, HNLU: Mr. S.K.Sinha

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    Vinay Sahu
    The document discusses grounds for setting aside an arbitral award under Indian law. It notes that Section 34 of the Arbitration and Conciliation Act provides the only recourse against an arbitral award and lists the grounds for setting aside an award under this section. These include incapacity of a party, invalid arbitration agreement, lack of proper notice, matters beyond the scope of arbitration, issues with the composition of the arbitral tribunal, and conflicts with public policy. The document elaborates on the definition of "public policy" and notes a Supreme Court ruling that held awards may be set aside if they violate fundamental policy, interest of India, justice or morality, or are patently illegal.

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    Faculty of Law, HNLU: Mr. S.K.Sinha

    Uploaded by

    Vinay Sahu
    67 views6 pages
    The document discusses grounds for setting aside an arbitral award under Indian law. It notes that Section 34 of the Arbitration and Conciliation Act provides the only recourse against an arbitral award and lists the grounds for setting aside an award under this section. These include incapacity of a party, invalid arbitration agreement, lack of proper notice, matters beyond the scope of arbitration, issues with the composition of the arbitral tribunal, and conflicts with public policy. The document elaborates on the definition of "public policy" and notes a Supreme Court ruling that held awards may be set aside if they violate fundamental policy, interest of India, justice or morality, or are patently illegal.

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    Module - VII

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    The document discusses grounds for setting aside an arbitral award under Indian law. It notes that Section 34 of the Arbitration and Conciliation Act provides the only recourse against an arbitral award and lists the grounds for setting aside an award under this section. These include incapacity of a party, invalid arbitration agreement, lack of proper notice, matters beyond the scope of arbitration, issues with the composition of the arbitral tribunal, and conflicts with public policy. The document elaborates on the definition of "public policy" and notes a Supreme Court ruling that held awards may be set aside if they violate fundamental policy, interest of India, justice or morality, or are patently illegal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    67 views6 pages

    Faculty of Law, HNLU: Mr. S.K.Sinha

    Uploaded by

    Vinay Sahu
    The document discusses grounds for setting aside an arbitral award under Indian law. It notes that Section 34 of the Arbitration and Conciliation Act provides the only recourse against an arbitral award and lists the grounds for setting aside an award under this section. These include incapacity of a party, invalid arbitration agreement, lack of proper notice, matters beyond the scope of arbitration, issues with the composition of the arbitral tribunal, and conflicts with public policy. The document elaborates on the definition of "public policy" and notes a Supreme Court ruling that held awards may be set aside if they violate fundamental policy, interest of India, justice or morality, or are patently illegal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Alternative Dispute Resolution

    Module VII
    Recourse against Arbitral Award
    /Appeals /Remedies against Arbitral
    Award
    Semester VI, Section C
    Class Summary
    Mr. S.K.Sinha.
    Faculty of Law, HNLU



    Recourse against Arbitral Award -
    Grounds for Setting Aside

    Chapter VII, Part I of the Arbitration and Conciliation Act, 1996 pertains to
    recourse against arbitral award. There is no appellate provision under the Act
    against an arbitral award. Only recourse against the award is provided u/s 34 of
    the Act. If a party is aggrieved by the arbitral award, u/s 34(1) of the Act, he
    must file an application for setting aside the arbitral award. Under Section 34 the
    grounds for setting aside of the award have been provided. If the procedure laid
    under Chapter V and VI of the Act is followed properly by the arbitral tribunal
    and if an award is passed on the merits of the case such an award may not be set
    aside.
    The following are the grounds provided under Section 34(2) of the Act
    based on which the Court may set aside an arbitral award:
    (a) Incapacity: - The party making the application must furnish proof that a party
    was under some incapacity.
    (b) Invalid Agreement:- If it is proved by the applicant that the arbitration
    agreement is not valid under the law to which the parties have subjected it or,
    failing any indication thereon, under the law for the time being in force, the
    award can be set aside.

    Contd.
    (c) Notice:- If it is proved that the party making the application was not given
    proper notice of the appointment of an arbitrator or of the arbitral proceedings or
    was otherwise unable to present his case, the award can be set aside.
    (d) Exceeding the scope of submissions to arbitration:- If it is proved that the
    arbitral award deals with a dispute not contemplated by or not falling within the
    terms of the submission to arbitration, or it contains decisions on matters beyond
    the scope of the submission to arbitration, the award can be set aside. However,
    if the decisions on matters submitted to arbitration can be separated from those
    not so submitted; only that part of the arbitral award which contains decisions on
    matters not submitted to arbitration may be set aside by the court.
    (e) Composition of the Arbitral Tribunal:- If it is proved that the composition of
    the arbitral tribunal or the arbitral procedure was not in accordance with the
    agreement of the parties or failing such agreement, the composition of the
    arbitral tribunal or arbitral procedure was not in accordance with part I of the
    Act, the award can be set aside. However, if such an agreement was in conflict
    with a provision of Part I of the Act from which the parties cannot derogate, the
    arbitral award cannot be set aside as no deviation from statutory provisions can
    be permitted in case of non derogable provisions of the Statute.


    Contd.
    (f) Courts Findings: - The aforementioned grounds must be proved by the
    applicant seeking setting aside of the award. Under section 34(2)(b) of the Act,
    the arbitral award may be set aside if the court finds that the subject-matter of
    the dispute is not capable of settlement by arbitration under the law for the time
    being in force; or the arbitral award is in conflict with the public policy of India.
    The term public policy is clarified under the explanation given to Section
    34(2)(b) that an award in conflict with the public policy of India if the making
    of the award was induced or affected by fraud or corruption or was in violation
    of Section 75 or Section 81 of the Act. Section 75 pertains to confidentiality and
    Section 81 pertains to admissibility of evidence. Public Policy is in fact a very
    wider term which was interpreted by different High Coots and the Supreme
    Court.
    In Oil and Natural Gas Corporation Ltd. Vs. SAW Pipes Ltd. 2003 AIR
    SCW 3041, the Supreme Court elaborately explained and clarified the term
    public policy and power of the Court to set aside an arbitral award under
    section 34 of the Act.

    Contd.
    The Supreme Court held as follows:
    The phrase public policy of India used in S. 34 in context is required to be given
    a wider meaning. It can be stated that the concept of public policy connotes
    some matter which concerns public good and the public interest. What is for
    public good or in public interest or what would be injurious to the public good
    or public interest has varied from time to time. However, the award which is, on
    the face of it, patently in violation of statutory provisions cannot be said to be in
    public interest. Such award/judgment/decision is likely to adversely affect the
    administration of justice. Award could be set aside if it is contrary to:- (a)
    fundamental policy of Indian law; or (b) the interest of India; or (c) justice or
    morality; or (d) in addition, if it is patently illegal. Illegality must go to the root
    of the matter and if the illegality is of trivial nature it cannot be held that award
    is against the public policy. Award could also be set aside if it is so unfair and
    unreasonable that it shocks the conscience of the Court. Such award is opposed
    to public policy and is required to be adjudged void.

    Thank you for your time
    soumyakanti.lws@gmail.com
    www.hnlu.ac.in

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