What does Section 34 of the Arbitration and Conciliation Act, 1996 do?
Section 34 is the route by which an arbitral award made in India is challenged. An application to set aside an award must be made within three months of receiving it; the court may extend this by a further thirty days for sufficient cause, but no longer. The grounds are narrow and do not permit a rehearing on the merits. They include incapacity of a party; an invalid arbitration agreement; want of proper notice; an award beyond the scope of the reference; an irregularly constituted tribunal or procedure; non-arbitrability of the subject matter; conflict with the public policy of India; and, in domestic (not international commercial) arbitrations, patent illegality appearing on the face of the award.
Arbitration has been a core part of the firm’s practice since it was founded in 2014. We act in both ad hoc and institutional arbitrations. The practice is led by Mr. Vikas Kumar, FCIArb, who appears as counsel and also sits as an arbitrator.
Much of our arbitration work arises from contracts and commercial transactions. We aim to align our legal strategy with each client’s commercial interests and timelines.
Our clients include financial institutions, public sector bodies and multinational companies.
Our arbitration lawyers in Delhi advise and represent parties in domestic and international commercial arbitrations, from the drafting of the arbitration clause to the enforcement or challenge of the award. We aim to keep proceedings focused and cost-effective, and to bring the dispute to a timely conclusion.
Our arbitration work covers construction, energy, engineering, logistics, public-private partnership and general commercial contracts. We act in institutional and ad hoc arbitrations, including disputes arising from EPC and turnkey contracts, concession agreements, joint venture and shareholder arrangements, and supply and distribution agreements.
What the practice covers
- Domestic and international arbitration. Commercial disputes under the Arbitration and Conciliation Act, 1996, whether ad hoc or under institutional rules.
- Enforcement and challenge. Enforcing domestic and foreign awards in India, and challenging or defending awards under Section 34 and in appeals under Section 37.
- Drafting commercial contracts containing arbitration and dispute resolution clauses, notices invoking arbitration, and urgent interim relief from courts under Section 9 or from emergency arbitrators.
Common questions
How long is the period to challenge an arbitral award?
Three months from the date on which the party making the application received the award. A court may extend that by a further thirty days if satisfied there was sufficient cause, but it has no power to go beyond that.
Can a court review the merits of an award under Section 34?
No. Section 34 is not an appeal. A court considering a challenge is confined to the grounds listed in the Section, and an erroneous finding of fact or an unpersuasive view of the evidence is not by itself a ground to set an award aside.
How is an award enforced?
Under Section 36, once the time for a Section 34 application has expired, or such an application has been refused, the award is enforced in the same manner as a decree of the court. Filing a challenge does not automatically stay enforcement; a separate order is needed, and the court may impose conditions such as a deposit of the amount awarded.
What is the difference between institutional and ad hoc arbitration?
Institutional arbitration is administered by a body under its own published rules, which govern appointment, timelines and fees. Ad hoc arbitration is run by the parties and the tribunal without an administering institution. The firm appears in both.
Can a foreign arbitral award be enforced in India?
Yes. An award made in a territory that the Central Government has notified as a reciprocating territory under the New York Convention (or, now rarely, the Geneva Convention) is enforceable in India as a decree of the court, once the court is satisfied that none of the limited grounds for refusal in Part II of the Arbitration and Conciliation Act, 1996 applies. The application is made to the High Court with jurisdiction over the assets or the award debtor.
Can a court grant interim relief before or during arbitration?
Yes. A party may apply to the court under Section 9 for interim protection before or during the arbitration, for example to preserve assets. Once the tribunal is constituted, the court will not ordinarily entertain such an application unless relief from the tribunal under Section 17 would not be efficacious, so interim relief is then sought from the tribunal.