- The Supreme Court handed down a significant judgment[1] on the scope of power of a Court hearing a challenge to an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”). The Supreme Court reiterated that there is no power under Section 34 to modify or vary an arbitral award.
Arbitral Award
All Orders terminating proceedings are not Awards: Delhi HC sets the record straight
The issue of whether simplicitor orders terminating an arbitral proceeding is an award under the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), has been a question that has been plaguing various Courts in India for a while now. The issue is crucial in nature, as it determines the remedy of a party aggrieved by such an order. While some Courts have taken the view that such an order is an award appealable under Section 34 of the Arbitration Act, others have not. This ambiguity is a cause of concern for litigants since it delays the entire time bound arbitral process intended under the Arbitration Act and leaves the litigant in a lurch. However, the Hon’ble High Court of Delhi (“Delhi HC”) in PCL SUNCON v National Highway Authority of India[1] (“PCL SUNCON Case”) has addressed this issue and cleared the said ambiguity to a great extent.
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This Is the End: What Now? The Aftermath of an Award being Set Aside
There is scarcely any aspect of the Arbitration and Conciliation Act, 1996 (“Act”), which has not seen the spectre of ad nauseum arguments and judicial pronouncements. Concepts have been devised, lauded, followed, and then set aside. Lawyers have forcefully argued for awards to be set aside, and Courts have assiduously upheld the essence and spirit of the concept of arbitration. The law has been set, and then upturned, and in this entire process, not much judicial/ legislative light seems to have fallen on the protagonist of this piece. The Act only hints at what happens after an award is set aside, and the ‘hint’ paints a somewhat grim picture.
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Limitation period for filing a Section 34 Petition begins from the Date of Receipt of the Signed Copy of the Arbitral Award
Introduction:
Recently, a division bench of the Supreme Court in Dakshin Haryana Bijli Vitran Nigam Ltd. V. M/s Navigant Technologies Pvt. Ltd.[1] has inter alia (i) clarified when the limitation period for challenging an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) commences; (ii) discussed the legal requirement and significance of an award being signed; and (iii) highlighted the relevance of dissenting opinions in arbitration proceedings. The Court has also made observations on what happens to the underlying disputes between the parties after an award is set aside.
Continue Reading Limitation period for filing a Section 34 Petition begins from the Date of Receipt of the Signed Copy of the Arbitral Award