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Results: 4 Answers
International Arbitration
14.
Grounds for challenging an award
14.1
What are the grounds on which an award can be challenged, appealed or otherwise set aside in your jurisdiction?
 
India
Under Section 34 of the Arbitration Act, a party may challenge an arbitral award on the following grounds:

  • A party was under some incapacity;
  • The arbitration agreement was not valid under the law;
  • A party was not given proper notice of the appointment of an arbitrator;
  • The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration;
  • The composition of the tribunal or the arbitral procedure was not in accordance with the agreement of the parties;
  • The subject matter of the dispute is not capable of settlement by arbitration under the law in force;
  • The award conflicts with Indian public policy. An arbitral award will conflict with Indian public policy only 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;
    • the award contravenes the fundamental policy of Indian law (the test for determining this shall not involve a review of the merits of the dispute); or
    • the award is against the basic notions of morality and justice; or
  • The award (other than in international commercial arbitrations) is vitiated by patent illegality on the face of the award. However, an award shall not be set aside merely on the grounds of an erroneous application of the law or a review of the evidence.

Further, under Sections 48 and 57, foreign awards under Part II, Chapters I and II are enforceable only if the following conditions are satisfied:

  • The parties to the agreement referred to in Section 44 of the Arbitration Act were under some incapacity under the law applicable to them, or the agreement is not valid under the law to which the parties have subjected it or, failing any indication thereof, under the law of the country in which the award was made;
  • The party against which the award is invoked was not given proper notice of the appointment of the arbitrator or of the proceedings, or was otherwise unable to present its case;
  • The award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration. However, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced;
  • The composition of the tribunal or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place;
  • The award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made;
  • The subject matter of the dispute is not capable of settlement by arbitration under the law of India; or
  • Enforcement of the award would be contrary to the public policy of India. An award is in conflict with the public policy of India only 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 Arbitration Act;
    • the award contravenes the fundamental policy of Indian law (the test for determining this shall not entail a review on the merits of the dispute; or
    • the award conflicts with basic notions of morality or justice.
For more information about this answer please contact: Manoj Singh from Singh & Associates
14.2
Are there are any time limits and/or other requirements to bring a challenge?
 
India
As per Section 34(3) of the Arbitration Act, an application to set aside an arbitral award must be made within three months of receipt of the award or, if a request has been made for correction or interpretation of the award, from the date on which that request is disposed of by the tribunal. This three-month period may be extended by a further 30 days if the court is satisfied that the applicant was prevented by sufficient cause from making the application within the stipulated timeframe.

For more information about this answer please contact: Manoj Singh from Singh & Associates
14.3
Are parties permitted to exclude any rights of challenge or appeal?
 
India
The Arbitration Act specifically provides for appeal against an arbitral award. Further, as per settled law, any agreement that is contrary to the statute is void. Therefore, the parties cannot exclude rights of challenge or appeal.

For more information about this answer please contact: Manoj Singh from Singh & Associates