Scope under section 9 of of the arbitration and conciliation. Section 34 of the arbitration and conciliation act, 1996 gives the court or the judiciary the power to intervene in the arbitration process for the purpose of setting aside the award rendered by the arbitration tribunal. Recent judgments in relation to section 34 of the arbitration and. Section 34 of the arbitration and conciliation act, 1996 act provides for setting aside of an arbitral award by making an application to the. The paper will then go on to address in brief cases in which the arbitration and conciliation act, 1996 is given precedence over other statutes such as the insolvency and bankruptcy code, 2016 and viceversa. Limited scope of judicial intervention under arbitration act. A bench of 2 judges including justices rohinton fali nariman and indu malhotra, gave a judgment that deals with the nature of sections 34 5 and 6 of the arbitration and conciliation act, 1996. Apr 03, 2020 any delay beyond 120 days in the filing of an appeal under section 37 from an application being either dismissed or allowed under section 34 of the arbitration and conciliation act, 1996 should. The court in the case also observed that court could not substitute its view over that of the arbitrators.
Key words arbitration, setting aside arbitral award, section 34 of arbitration and concilaition act,1996, public policy, patently illegal. Applicability of arbitration amendment act, 2015 to section. The said clauses have been added to the act of 1996 by amending act 3 of 2016 w. Section 34 3 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have. The arbitration contract is not valid under the law to which parties have been subjected to. A division bench of the honble supreme court of india the court, consisting of mr. The most recent debate that reverberated in the halls of the apex court was on the issue whether section 34 5 of the arbitration and conciliation act, 1996, inserted by amending act 3 of 2016 w. Dave of the supreme court of india sc while exercising civil appellate jurisdiction and deciding the application and scope of section 34 of the arbitration and conciliation act, 1996 the act have upheld the judgment of the honble bombay high court and have held as under. Apr 02, 20 judgment of the court in a petition under section 34. Adducing evidence under section 34 of the arbitration act. Provided that parts i, iii and iv shall extend to the state of jammu and kashmir only in so far as they relate to international commercial arbitration or, as the case may be, international. Upon reaching arbitration, the appellant moved to the delhi high court under section 34 of the arbitration and conciliation act, 1996 hereinafter act to set aside the award on the ground of patent illegality.
In this article, mishika bajpai discusses the prior notice requirement under section 34 5 of the arbitration and conciliation act, 1996. Section 34 of the arbitration and conciliation act, 1996. At the current time any known changes or effects made by. An ambiguity of legal interpretation is a topic of sincere concern and relevance in the field of legal interpretation of the grounds for. These clauses were added to the act of 1996 by amending act 3 of 2016 w.
Oct 31, 2018 the said clauses have been added to the act of 1996 by amending act 3 of 2016 w. The most recent debate that reverberated in the halls of the apex court was on the issue whether section 345 of the arbitration and conciliation act, 1996, inserted by amending act 3 of 2016 w. Recourse to a court against an arbitral award may be made only by an application for setting aside such award in accordance with subsection 2 and subsection 3. Arbitration and conciliation act section 34 application to challenge award duration. Section 34 of arbitration and conciliation act 1996 archives. Limitation under section 343 of arbitration and conciliation act 1996 will prevail over section 17 of the limitation act 1963. Section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral. Applicability of arbitration amendment act, 2015 to. Scope under section 9 of of the arbitration and conciliation act, 1996.
Section 343 in the arbitration and conciliation act, 1996. There are currently no known outstanding effects for the arbitration act 1996, section 34. Bombay high court on postaward applications us 9 of the. Section 342 in the arbitration and conciliation act, 1996.
Section 34 3 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had. Arbitration and conciliation act, 1996 section 34 application for setting aside arbitral award learned arbitrator and the courts below have recorded the concurrent findings that the appellant contractor has failed in carrying out the work as per the terms and conditions of the contract and the learned arbitrator has rightly allowed the detention and forfeiture of the. It clarified the position of law that an appeal could be allowed only against the setting aside of an arbitral award or refusal to set it. Aug, 2018 this is a landmark case about the application of section 37 of the arbitration and conciliation act of 1996 herein referred to as the statute. Arbitration and conciliation act, 1996 bare acts law. Justice s abdul nazeer in the case of p radha bai vs p ashok kumar civil appeal no 771077 of 20, has reiterated the strict interpretation of limitation prescribed under section 343 of the arbitration and conciliation act 1996 arbitration act.
The petition was accompanied by an application under subsection 3 of section 34 of the act, for condonation of delay of 28 days in filing the petition. The petitioner challenged the subject arbitration award passed by a sole arbitrator under section 34 of the arbitration and conciliation act, 1996 on the ground, inter alia, that he did not receive a notice of arbitrators. T he section 9 of the arbitration and conciliation act, 1996, is very wide in scope and it would extend even to third parties in whom the properties or goods are vested, even though such parties may not be a party to the arbitration clause in an agreement. Mar 09, 2020 the paper will then go on to address in brief cases in which the arbitration and conciliation act, 1996 is given precedence over other statutes such as the insolvency and bankruptcy code, 2016 and viceversa. The arbitration and conciliation act, 1996 26 of 1996 as amended by the arbitration and conciliation amendment act, 2015 3 of 2016 the international centre for alternative dispute resolution plot no. A bench comprising of justice shiva kirti singh and justice anil r. Prior notice requirement under section 345 of the amended.
Limitation of time under section 34 of the arbitration and. Judgments on section 34 of arbitration and counciliation act, 1996. Section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral award made under section 31. In this article, mishika bajpai discusses the prior notice requirement under section 345 of the arbitration and conciliation act, 1996. Prior notice requirement section 345 of arbitration.
It clarified the position of law that an appeal could be allowed only against the setting aside of an arbitral award or refusal to set it aside under section 371c. National highways authority of india nhai, civil appeal no. Tanya varshney is a fourthyear student at jindal global law school. Analysis of section 34 of the arbitration and conciliation. The changes were suggested by the 246th report of the law commission of india on amendments to the arbitration and conciliation act, 1996 of august 2014 and the supplementary to the 246th report of the law commission of india on amendments to the. The same have been briefly discussed in the present article. Prior notice requirement section 345 of arbitration and. Nov, 2017 scope under section 9 of of the arbitration and conciliation act, 1996. The aforementioned judgment stands as a landmark precedent for every lawyer and court to follow when an issue arises as to whether the amended sections 345 and 6 of the arbitration and conciliation act, 1996, are to be treated as mandatory or directory in nature. Section 34 of the arbitration and conciliation act archives. Application of law of limitation in computing time period under. An evaluation of section 34 of the arbitration and. Section 34 of the arbitration and conciliation act archives scc blog.
An evaluation of section 34 of the arbitration and conciliation act. The scope of enquiry in any proceedings under section 34 of the act has been restricted to consider whether any of the grounds mentioned in section 342 or section 5 or section 166 are made out to set aside the award, the grounds for which. An act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or. Section 343 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had. Recent judgments in relation to section 34 of the arbitration. The arbitration and conciliation amendment act, 2015 made major changes to section 34. Time limitation under section 34 singhania and partners. Changes and effects are recorded by our editorial team in lists which can be.
Arbitration act 1996 is up to date with all changes known to be in force on or before february 2020. In this case, the appellant had challenged the order of single judge, wherein the single judge had dismissed the appellants petition under section 34 of the arbitration and conciliation act, 1996 for setting aside the arbitral award. This is a landmark case about the application of section 37 of the arbitration and conciliation act of 1996 herein referred to as the statute. A bench of 2 judges including justices rohinton fali nariman and indu malhotra, gave a judgment that deals with the nature of sections 345 and 6 of the arbitration and conciliation act, 1996. Aug 07, 2019 upon reaching arbitration, the appellant moved to the delhi high court under section 34 of the arbitration and conciliation act, 1996 hereinafter act to set aside the award on the ground of patent illegality. Scope of section 34 of the arbitration and conciliation. However, the challenge to the award can only be made within limitation period of three months from the date of receipt of the award. Analysis of public policy with respect to the indian. Section 34 in the arbitration and conciliation act, 1996. Sections 345 and 6 of the arbitration and conciliation. This is one of the chapter of jurisprudence interpretation and general laws of cs. Nov 30, 2017 in this case, the appellant had challenged the order of single judge, wherein the single judge had dismissed the appellants petition under section 34 of the arbitration and conciliation act, 1996 for setting aside the arbitral award.
Recently, a number of judgments have been passed while interpreting section 34. Pdf setting aside of arbitral awards under section34 of. Oct 17, 2018 a division bench of the honble supreme court of india the court, consisting of mr. It has been well established that proceedings under section 34 of the arbitration and conciliation act, 1996 the act are summary in nature. An application to challenge arbitral award is made under section 34 of the indian arbitration and conciliation act, 1996 the arbitration act.
The aforementioned judgment stands as a landmark precedent for every lawyer and court to follow when an issue arises as to whether the amended sections 34 5 and 6 of the arbitration and conciliation act, 1996, are to be treated as mandatory or directory in nature. Section 34 of the arbitration and conciliation act, 1996 act provides for setting aside of an arbitral award by making an application to the court, on the grounds stated therein. Judgments on section 34 of arbitration and conciliation. Section 34 of arbitration and conciliation act 1996. In accordance with section 34 of the arbitration and conciliation act, 1996 that states that the court can set aside the arbitral award if. To hold that a petition under section 9 would be maintainable after the passing of an arbitral award at the behest of dipl whose claim has been rejected would result in a perversion of the object and purpose underlying section 9 of the arbitration and conciliation act, 1996. Arbitration and conciliation act, 1996, updated 2019. Section 34 of the arbitration and conciliation act. Arbitral process under arbitration and conciliation act, 1996. This section deals with the procedure for the application and also the grounds for setting aside the arbitral award.
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