The time limit
An application to set aside an award under Section 34 must be made within three months from the date on which the party making it received the award (or, where a request for correction under Section 33 was made, the date the request was disposed of). If the court is satisfied that the applicant was prevented by sufficient cause, it may entertain the application within a further period of 30 days, but not after that. This is a strict limit that courts do not relax by applying the general provisions of the Limitation Act.
Where to file
The application is filed before the court that has jurisdiction as defined in the Act, generally the principal civil court or the High Court exercising original jurisdiction. For a commercial dispute, it goes to the commercial court or commercial division of the High Court, according to its value.
The grounds
The grounds in Section 34(2) are limited. They include incapacity of a party, invalidity of the arbitration agreement, lack of proper notice or inability to present the case, an award dealing with matters beyond the scope of the submission, a tribunal or procedure not in accordance with the agreement, and an award in conflict with the public policy of India. For domestic awards, patent illegality appearing on the face of the award is also a ground. The court does not re-examine the merits as an appellate court would.
Enforcement while the challenge is pending
Under Section 36, as amended in 2015, filing a Section 34 petition does not by itself operate as a stay of the award. The losing party must apply separately for a stay, and the court may grant it subject to conditions, commonly a deposit of the award amount or part of it. A money award in the hands of a party who wants to execute is therefore enforceable in the ordinary way unless stayed.
Appeal
Section 37 provides for appeals against specified orders, including orders refusing to set aside an award under Section 34. Further appeal lies to the Supreme Court by special leave.
What to do on receiving an award
- Note the date of receipt of the signed award and how it was delivered.
- Obtain advice on grounds, the stay position and the deposit risk within days, not weeks.
- Consider whether a correction or interpretation request under Section 33 is appropriate.
- Where you hold the award, consider prompt enforcement and security for the amount.
General information on the law as it stands, not advice. See arbitration and mediation.