How to Challenge an Arbitral Award Under Section 34 — Complete Guide
An arbitral award is final and binding — but it can be challenged on very limited grounds under Section 34 of the Arbitration and Conciliation Act, 1996. Here's everything you need to know.
What is Section 34?
Section 34 of the Arbitration and Conciliation Act, 1996 provides the only mechanism to set aside (challenge/annul) a domestic arbitral award. It is not an appeal — courts under Section 34 do NOT re-examine the merits of the dispute. They only check whether the award suffers from the specific procedural or legal defects listed in the section.
Key Principle: Section 34 is NOT an appeal. Courts will not review whether the arbitrator decided the facts correctly. They only check for the limited grounds enumerated in Section 34.
Grounds for Setting Aside an Arbitral Award
Incapacity of a Party
One of the parties to the arbitration agreement was under some incapacity — minor, person of unsound mind, etc.
Invalid Arbitration Agreement
The arbitration agreement is invalid under the applicable law — e.g., no valid written agreement, or agreement on a non-arbitrable matter.
Lack of Proper Notice
A party was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings, or was otherwise unable to present their case.
Award Beyond Scope
The award deals with a dispute not contemplated by or not falling within the terms of the arbitration agreement, or contains decisions beyond the scope of the submission to arbitration.
Improper Composition of Tribunal
The composition of the tribunal or the arbitral procedure was not in accordance with the agreement of the parties (unless it violated a mandatory provision of the Act).
Non-Arbitrable Subject Matter
The subject matter of the dispute is not capable of settlement by arbitration under the law for the time being in force (e.g., criminal matters, matrimonial status).
Conflict with Public Policy
The award is in conflict with the public policy of India. Post-2015 amendment, this means: (a) award induced by fraud/corruption, (b) contravenes fundamental policy of Indian law, (c) conflicts with most basic notions of morality/justice.
Patent Illegality (Domestic Only)
For domestic arbitrations, the award is patently illegal — i.e., the arbitrator has gone beyond their powers, applied incorrect law, or given no reasons. This ground does NOT apply to international commercial arbitration.
Limitation Period — 3 Months
⏰ Strict Deadline: An application under Section 34 must be filed within 3 months from the date you received the arbitral award. The court may condone a delay of up to 30 additional days if you show "sufficient cause" — but NOT beyond that. Missing this deadline means the award becomes final and enforceable.
Procedure for Filing Section 34 Application
File in the Appropriate Court
File the Section 34 application in the 'court' as defined under Section 2(1)(e) — for domestic arbitration, this is the principal Civil Court of original jurisdiction (District Court) or a High Court with original jurisdiction.
Pay Court Fees
Pay the applicable court fees (varies by state). The application must be on stamp paper of appropriate value.
File Supporting Affidavit
Attach an affidavit setting out the grounds for challenge, evidence supporting each ground, and a certified copy of the arbitral award.
Serve Notice on Other Party
The court will issue notice to the award-holder (respondent). Both parties present arguments. The court decides whether to set aside the award or dismiss the application.
Section 34 vs Section 37 — Challenge vs Appeal
Section 34 — setting aside the award itself. Filed in the appropriate court. | Section 37 — appeal against the court's ORDER under Section 34 (or Section 9/17). Limited scope. Goes to the High Court or Supreme Court.