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Recourse against Arbitral Award
Recourse against Arbitral Award
The arbitration may be a method of dispute resolution between the parties through an arbitral tribunal appointed by parties to the dispute or by the Court at the request of a party. there's no provision for appeal against an arbitrational award and it's final and binding between the parties. However, an aggrieved party could take recourse to a law court for setting aside the arbitration award on bound grounds per Section thirty-four of the Arbitration and Conciliation Act, 1996.
Setting Aside arbitrational Award
The parties cannot appeal against an arbitral award on its merits and also the court cannot interfere on its merits. The Supreme Court has determined “an arbitrator may be a judge appointed by the parties and in and of itself passed by him isn't to be lightly interfered with.” However, this doesn't mean that there's no check on the arbitrator’s conduct. so as to assure correct conduct of the continuing, the law permits certain remedies against an award.
Under the repealed 1940 Act remedies were obtainable against an award- modification, remission and set aside. These remedies are put under the 1996 Act into 2 teams. To the extent that the remedy was for rectification of errors, it's been handed over to the parties and also the tribunal. The remedy for setting aside has been moulded with returning back the award to the court for removal of defects.
Section thirty-four provides that an arbitral award is also put aside by a court on bound grounds such as that. These grounds are:
- Incapacity of a party
- Arbitration agreement not being valid
- Party not given correct notice of proceedings
- Nature of dispute not falling at intervals the terms of submission to arbitration
- The arbitral procedure not being in accordance with the agreement
Section thirty-four of the Act relies on Article thirty-four of the UNCITRAL Model Law and also the scope of the provisions for setting aside the award is much but it had been below the Sections thirty or thirty-three of the 1940 Act. In Municipal corp. of greater Mumbai v. Prestress products (India)[i], the court command that the new Act was brought into being with the categorical Parliamentary objective of curtailing judicial intervention. Section thirty-four considerably reduces the extent of the attainable challenge to an award.
An award that is set aside isn't any longer remains enforceable by law. The parties are improved to their former position on their claims within the dispute. Setting aside an award means it's rejected as invalid. The award is avoided and also the matter becomes open for the call once more. The parties become unengaged to return to arbitration or to own the matter set through court.
(This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.)
- The arbitration may be a method of dispute resolution between the parties through an arbitral tribunal appointed by parties to the dispute or by the Court at the request of a party.
- The parties cannot appeal against an arbitral award on its merits and also the court cannot interfere on its merits.
- The Supreme Court has determined “an arbitrator may be a judge appointed by the parties and in and of itself passed by him isn't to be lightly interfered with.
