Section 34 — Arbitration and Conciliation Act, 1996
Setting Aside an Arbitral Award
Section 34 allows courts to set aside arbitral awards — but only on very limited grounds. A complete guide to the provision, its grounds, time limits, and practical implications.
Consult Sandhee's Experts →What is Section 34?
Section 34 of the Arbitration and Conciliation Act, 1996 provides the mechanism for challenging an arbitral award in court. However, the grounds for challenge are deliberately narrow — the legislature intended arbitration to be a final and binding process, not a gateway to relitigation.
Grounds for Setting Aside Under Section 34
Incapacity of a Party
One party was under some incapacity — minority, insanity, or legal incompetence — at the time of entering the arbitration agreement.
Invalid Arbitration Agreement
The arbitration agreement is not valid under the applicable law — it may lack essential elements like mutuality or certainty of dispute types.
Notice / Natural Justice Violation
A party was not given proper notice of the appointment of the arbitrator or the arbitral proceedings, or was otherwise unable to present their case.
Beyond Scope of Agreement
The award deals with a dispute not falling within the arbitration agreement, or contains decisions on matters beyond the scope of submission.
Improper Tribunal Composition
The composition of the arbitral tribunal or the procedure was not in accordance with the agreement of the parties or the Act.
Non-Arbitrable Subject Matter
The subject matter of the dispute is not capable of settlement by arbitration under Indian law.
Conflict with Public Policy
The arbitral award conflicts with the public policy of India — including fraud, corruption, or fundamental policy of Indian law.
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