However, the challenge to the award can only be made within limitation period of three months from the date of receipt of the award. Upon reaching arbitration, the appellant moved to the delhi high court under section 34 of the arbitration and conciliation act, 1996 hereinafter act to set aside the award on the ground of patent illegality. Limitation of time under section 34 of the arbitration and. Key words arbitration, setting aside arbitral award, section 34 of arbitration and concilaition act,1996, public policy, patently illegal. In an attempt to make arbitration a preferred mode of settlement of commercial disputes and making india a hub of international commercial arbitration, the president of india on 23 october 2015 promulgated an ordinance arbitration and conciliation amendment ordinance, 2015 amending the arbitration and conciliation act, 1996. There are currently no known outstanding effects for the arbitration act 1996, section 34. Short title, extent and commencement 2 part i arbitration. Section 34 of the arbitration and conciliation act, 1996 gives the court or the judiciary the power to intervene in the arbitration process for the purpose of setting aside the award rendered by the arbitration tribunal.
Disclaimer views expressed in this document are for information and academic purpose only. Prior notice requirement section 345 of arbitration and. Dec 15, 2015 section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral award made under section 31. Be it enacted by parliament in the seventieth year of the republic of india as follows. Scope under section 9 of of the arbitration and conciliation.
Arbitration and conciliation act, 1996 bare acts law. Notice under section 21 is mandatory before referring the. The delhi high court in a recent judgment dated february 28, 2017, delivered by justice s. Pdf setting aside of arbitral awards under section34 of indian. The 2019 amendment act not only felicitously revamps the arbitration and conciliation act, 1996 1996 act, but also nicely refines the operation of the arbitration and conciliation amendment. Section 34 of the arbitration and conciliation act, 1996. Even though section 9 of the arbitration and conciliation act, 1996. A petition under section 34 of the arbitration and conciliation act, 1996 act for short was filed by the appellant on 11.
The petition was accompanied by an application under subsection 3 of section 34 of the act, for condonation of delay of 28 days in filing the petition. The aforementioned judgment stands as a landmark precedent for every lawyer and court to follow when an issue arises as to whether the amended sections 345 and 6 of the arbitration and conciliation act, 1996, are to be treated as mandatory or directory in nature. The said clauses have been added to the act of 1996 by amending act 3 of 2016 w. Laws of the federation of nigeria 1990 14 th march, 1998. Ozone overseas pvt ltd, has given a much needed interpretation and clarity to the object and purpose of issuing the notice under section 21 of the arbitration and conciliation act. An act further to amend the arbitration and conciliation act, 1996. National highways authority of india nhai, civil appeal no. Indian, section 34 under part i of the arbitration and conciliation act of 1996 hereinafter referred as 1996 act lays down the provisions under which.
For the purpose of this subsection, an arbitral tribunal shall be deemed to have entered upon the reference on the date on. Nov, 2017 scope under section 9 of of the arbitration and conciliation act, 1996. Justice r s bachawats law of arbitration and conciliation. Oct 01, 2017 section 34 of the arbitration and conciliation act 1.
In this article, mishika bajpai discusses the prior notice requirement under section 34 5 of the arbitration and conciliation act, 1996. Section 343 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had. This is one of the chapter of jurisprudence interpretation and general laws of cs. Venture global failed before the state courts on the threshold question of whether section 34 could be invoked with respect to a foreign award. The most recent debate that reverberated in the halls of the apex court was on the issue whether section 34 5 of the arbitration and conciliation act, 1996, inserted by amending act 3 of 2016 w. An act to amend the arbitration and conciliation act, 1996. Limited scope of judicial intervention under arbitration act. The aforementioned judgment stands as a landmark precedent for every lawyer and court to follow when an issue arises as to whether the amended sections 34 5 and 6 of the arbitration and conciliation act, 1996, are to be treated as mandatory or directory in nature.
This section deals with the procedure for the application and also the grounds for setting aside the arbitral award. The paper will then go on to address in brief cases in which the arbitration and conciliation act, 1996 is given precedence over other statutes such as the insolvency and bankruptcy code, 2016 and viceversa. The newly introduced section 29a in the arbitration and conciliation act 1996 will expedite arbitration in india section 29a. This paper makes an evaluation of section 34 of the 1996 act and the amendments thereto and the scope of judicial. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Judgments on section 34 of arbitration and conciliation act. In the arbitration and conciliation act, 1996 hereinafter referred to as the principal act, in section 2, i in subsection 1. Apr 25, 2014 the court thus held that subsection 4 of s. Section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral award made under section 31.
T he section 9 of the arbitration and conciliation act, 1996, is very wide in scope and it would extend even to third parties in whom the properties or goods are vested, even though such parties may not be a party to the arbitration clause in an agreement. Section 34 provides that parties can move an application to court for setting aside an award. Conciliation act 1996 d oes away with the domestic act of 1940, foreign arbitration act of 1961, geneva convention, new york conv ention and brings arbitration in one act constituting 4. An evaluation of section 34 of the arbitration and conciliation act. Nov 30, 2017 in this case, the appellant had challenged the order of single judge, wherein the single judge had dismissed the appellants petition under section 34 of the arbitration and conciliation act, 1996 for setting aside the arbitral award. Arbitration is a mechanism whereby which the parties enter into an agreement, either in advance or after the dispute crops. Judgments on section 34 of arbitration and conciliation. Changes to legislation revised legislation carried on this site may not be fully up to date. An act to provide a unified legal frame work for the fair and efficient settlement of commercial disputes by arbitration and conciliation. Judgments on section 34 of the arbitration and conciliation. Recent judgments in relation to section 34 of the arbitration and. Aug 30, 2019 the 2019 amendment act not only felicitously revamps the arbitration and conciliation act, 1996 1996 act, but also nicely refines the operation of the arbitration and conciliation amendment.
Pdf setting aside of arbitral awards under section34 of. The most recent debate that reverberated in the halls of the apex court was on the issue whether section 345 of the arbitration and conciliation act, 1996, inserted by amending act 3 of 2016 w. Section 343 in the arbitration and conciliation act, 1996. Section 29 a of the arbitration and conciliation act 1996. Oct 31, 2018 the said clauses have been added to the act of 1996 by amending act 3 of 2016 w. Prior notice requirement section 345 of arbitration.
All about arbitration and conciliation act, 1996 by. Arbitration act 1996 is up to date with all changes. An arbitral award may be set aside on an application by a party defined under section 2 h of the arbitration and conciliation. Judgments on section 34 of arbitration and counciliation act, 1996. The court in the case also observed that court could not substitute its view over that of the arbitrators. Section 34 of the arbitration and conciliation act, 1996 the act prior to the amendment i. The arbitration and conciliation act, 1996 and the amendments under the arbitration and conciliation amendment act, 2015 have given definite character to section 34 of the act and resolved certain issues pertaining to it. Be it enacted by parliament in the fortyseventh year of the republic of india as follows. Chapter vii of arbitration and conciliation act, 1996 encompasses section 34, which covers recourse against arbitral award. The arbitration act 1996 c 23 is an act of parliament which regulates arbitration proceedings within the jurisdiction of england and wales and northern ireland. In this article, mishika bajpai discusses the prior notice requirement under section 345 of the arbitration and conciliation act, 1996.
Introduction the trend of arbitration has increased tremendously over the past decade, at both national and international level. An evaluation of section 34 of the arbitration and. Mar 09, 2020 the paper will then go on to address in brief cases in which the arbitration and conciliation act, 1996 is given precedence over other statutes such as the insolvency and bankruptcy code, 2016 and viceversa. Arbitration and conciliation amendment act 2019 a primer. Under section 34 of the act, an arbitral award can be set aside only on. Venture global moved the indian courts to obtain an order to set aside the award under section 34 of the indian arbitration and conciliation act 1996.
In scotland the rules governing arbitrations are found in schedule 7 of the law reform miscellaneous provisions scotland act 1990 and are based upon the uncitral model law. Analysis of section 34 of the arbitration and conciliation. Llb h, damodaram sanjivayya national law university, visakhapatnam. Jan 31, 2018 object of section 21 of the arbitration and conciliation act 1996. Section 34 of the arbitration and conciliation act 1. Section 34 3 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have. Recourse to a court against an arbitral award may be made only by an application for setting aside such award in accordance with subsection 2 and subsection 3. Section 34 in the arbitration and conciliation act, 1996. Section 34 of the arbitration and conciliation act, 1996 act provides for setting aside of an arbitral award by making an application to the. An act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or. An act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters. Not to be confused with arbitration act 1996 new zealand or arbitration and conciliation act 1996. In this case, the appellant had challenged the order of single judge, wherein the single judge had dismissed the appellants petition under section 34 of the arbitration and conciliation act, 1996 for setting aside the arbitral award.
The learned judge did not find a reason to interfere with the award as the view of the majority was drawn on a plausible. In this article, tarun gaur, advocate, delhi high court discusses section 8 of the arbitration and conciliation act, 1996. Sections 345 and 6 of the arbitration and conciliation. Object of section 21 of the arbitration and conciliation act 1996. Scope of section 8 of the arbitration and conciliation act. Arbitration act 1996 is up to date with all changes known to be in force on or before 15 april 2019. The arbitration act 1996 is an act of parliament which regulates arbitration proceedings within the jurisdiction of england and wales and northern ireland the 1996 act only applies to parts of the united kingdom. The 1996 act only applies to parts of the united kingdom. Court under section 34, the filing of such an application shall not by itself render that. Scope under section 9 of of the arbitration and conciliation act, 1996. All about arbitration and conciliation act, 1996 by abhipsha mohanty download pdf the author, abhipsha mohanty, is a 3rd year student of ba. However, the challenge to the award can only be made within limitation period of. This version of this act contains provisions that are prospective.
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