Latest News
Whether an Award can be set aside on the ground that the vital documents relevant to the controversy had not been taken into consideration by the arbitral tribunal?
Whether an Award can be set aside on the ground that the vital documents relevant to the controversy had not been taken into consideration by the arbitral tribunal?
It is undisputed that court interference with arbitrational awards ought to be in the least. At an equivalent time, arbitrational tribunals aren't resistant to interference. Under Section thirty-four sub-section (2) and (2A) of the Arbitration and Conciliation Act, 1996 (“the Arbitration Act”)[1], courts have restricted power beneath the provided grounds to set aside awards. The choice of setting aside awards depends upon the facts and circumstances of every case.
In M/S first global Stock Broking Pvt. Ltd. v. Tarun Gupta[2], an appeal was most well-liked beneath Section thirty-seven of the Arbitration Act to assail the order of the only judge in an exceedingly Section thirty-four application. the only judge found that the judicature in its order had taken an extremely oversimplified view of the contract. It had failed to take into account that the laws of National stock exchange India[3] had not been followed and had created the award while not making any respect to the correspondences exchanged between parties to search out that the account of the respondent was a simple commercialism account.
The account is a discretionary trading account, the premise for the award failing and also the award was put aside. The Court within the current appeal found that the only judge had justifiably evaluated the case and finding no reason to interfere with the order, rejected the appeal.
First Global Stock Broking private limited v. Tarun Gupta[4] The Court upheld the Order setting aside an arbitrational award whereby the Court had found that varied important documents relevant to the difference of opinion had not been taken into thought by the arbitrational tribunal. Section thirty-four of the Arbitration and Conciliation Act provides the provisions of certain specific grounds on the premise that an arbitrational award rendered in India may be put aside.
They are-
- Incapacity of a party whereas creating an application to enter the agreement.
- Arbitration agreement not being valid beneath the law.
- Parties weren't given correct notice of the appointed Arbitrators or the arbitrational judicature.
- Nature of dispute ineffectual of settlement by arbitration.
- The composition of the arbitrational award wasn't in accordance with the agreement of the parties.
- The arbitrational award is within the violation of the general public policy of a state.
- The arbitrational award deals with a dispute not falling among the terms of submissions to an arbitration.
[1] https://legislative.gov.in/sites/default/files/A1996-26.pdf
[2] (FAO(OS) (COMM) 50/2019, Jan. 14, 2020)
[3] (F&O Segment)
[4] [Judgment dated fourteen.01.2020 in fao (OS) (COMM.) 50/2019]
(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.)
- It is undisputed that court interference with arbitrational awards ought to be in the least
- Under Section thirty-four sub-section (2) and (2A) of the Arbitration and Conciliation Act, 1996 (“the Arbitration Act”)[1], courts have restricted power beneath the grounds to set aside award
- The choice of setting aside awards depends upon the facts and circumstances of every case.
