Q. Competence of arbitral tribunal to rule on its jurisdiction??

(Section 16, 17)

Jurisdiction of arbitration tribunals
It would not be appropriate to say that an arbital tribunal has statutory jurisdiction. The tribunal
determines its jurisdiction to adjust the needs of the parties. The arbitral agreement mainly
determines the ambit of jurisdiction of the arbitral tribunal.
Thus it is very essential to contemplate a well-drafted agreement because it results in giving
complete strength to the tribunal to determine matters related to the jurisdiction. The Arbitration
and Conciliation Act, 1996 also specifically mentions the jurisdiction to determine explicit
matters in Section 17 of the Act.
• Appointment of a guardian for a person who is of unsound mind or minor age in
between the process of arbitration
• Safety/Security/ Confinement/ provisional injunction of the subject matter of the
arbitration.
Section 16. Competence of arbitral tribunal to rule on its jurisdiction.
But Section 16 of the Arbitration and Conciliation Act, 1996 grants power to the Arbitral
Tribunal to look on its own jurisdiction. Section 16 (1) of the Act provides that the arbitral
tribunal may regulate or direct on its own jurisdiction, which also incorporates any objection
regarding the validity or existence of the arbitration agreement.
Section 16 of the Arbitration and Conciliation Act incorporates the concept of competence-
competence. The concept can be understood on two terms first one reflects that the tribunal may
decide on its jurisdiction without support from the courts secondly, it shows reluctance from the
courts in deciding this issue, before the tribunal has decided on this issue.

With regard to the jurisdiction of the arbitral tribunal Section 16 of the act remains the point of
focus. The section provides the concept of competence competence.
Prior before the incorporation of these principal in the law of arbitration,
Sub-section (4) provides that The arbitral tribunal may, in either of the cases referred to in sub-
section (2) or sub-section (3), admit a later plea if it considers the delay justified.

Pharmaceutical Products of India Ltd. vs. Tata Finance Ltd., the Hon’ble Bombay High
Court opined that in cases where the Arbitral Tribunal rejects the plea related to its jurisdiction,
Section16(5) of the Arbitration and Conciliation Act clearly empowers the Tribunal to resume
with the arbitral proceedings and declare an arbitral award.
Section 16(5) grants procedure to challenge an arbitral award. It states that only in accordance
with Section 34, such an award can be challenged. whereas, if the Arbitral Tribunal determines
to accept the plea that it does not have jurisdiction, then such decision can be appealed
under Section 37(2) of the Arbitration and Conciliation Act.
Konkan Railway Corporation Ltd. v. Rani Construction Pvt. Ltd.

The supreme court observed that Section 16 enables the arbitral tribunal to rule on its own
jurisdiction. The authority under Section 16 is not confined to the width of its jurisdiction but
goes also to the root of its jurisdiction

In the case of Jawaharlal Burman vs. Union of India,

the Hon’ble Supreme Court held that it is theoretically possible that the contract may end and
the arbitration contract may not
 Q. Circumstances when an Arbitral proceeding shall terminate? (Section 32)
Section 32 of the Arbitrational and Conciliation Act, 1996 is totally coherent with Article 32 of
UNCITRAL Model Law. According to Section 32(1) of the Act termination of Arbitral
proceedings takes place once the final award declared by the arbitral tribunal. The other three
grounds of termination of arbitral proceedings are given under Sub-section 2 of Section 32.
To terminate the arbitration proceedings arbitral tribunal shall issue an order:
• The parties themselves agree to terminate the proceedings.
• If the arbitral tribunal finds that the continuation of the proceedings is either unnecessary or
impossible for any other reason.
• the plaintiff withdraws their claim. It can also be terminated if the respondent objects to the
arbitral award. Looking at which the arbitral tribunal come to a conclusion that it has a legitimate
interest in obtaining a final settlement.
In the last, The mandate of the arbitral tribunal will terminate with the termination of the
procedure itself. Sub-section (3) of this section lays down that the above provisions are subject to
Section 34(4) and section 33.
A claimant is free to withdraw his claim at any time, but if such withdrawal adversely affects the
rights of the respondent, he may object to such withdrawal and termination of proceedings due to
such withdrawal. Sometimes, the parties may agree to terminate the arbitral proceedings. Further,
the arbitral tribunal may issue an order terminating the proceedings if it finds that the
continuation of proceedings has become unnecessary or impossible.
Discuss provision relating to correction and interpretation of an award of arbitral
tribunal??? (Section 33)
Section 33 of the Arbitration and Conciliation Act, 1996 is the statutory provision that allows for
correction and interpretation of an award. The important reason here is that human errors can
occur. This means that there are situations when there are errors in an arbitral award. These
errors could be simply typing errors or something major such as a decision missing from the
proceedings in the final award. These kinds of errors put one party at a disadvantage.
There are cases where an interim award is necessary and can be provided. Section 33 plays an
important role to ensure that the parties do not suffer due to the mistakes of the arbitration
tribunal. This section is divided into two parts-
1. The first part from sub-section 1 to 3, provides from the correction and interpretation
of an arbitral award.
2. The second part from sub-section 4 to 7, provides for the granting of an additional
award.
The important reason here is that human errors can occur. This means that there are situations
when there are errors in an arbitral award. These errors could be simply typing errors or
something major such as a decision missing from the proceedings in the final award. These kinds
of errors put one party at a disadvantage. These errors are unacceptable as the award, once
granted, is not up for appeal.
1.Section 33(1) of the Arbitration and Conciliation Act
This sub-section states that:
(1) Within thirty days from the receipt of the arbitral award, unless another time period has been
agreed upon by the parties:
(a) a party, with notice to the other party, may request the arbitral tribunal to correct any
computation errors, any clerical or typographical errors or any other errors of a similar nature
occurring in the award;
(b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral
tribunal to give an interpretation of a specific point or part of the award.
A limitation period of 30 days is put on the application submitted. After the completion of 30
days, no party can request correction or interpretation.
It is also important to notice that one party who wants to move under Section 33 does not need
the consent of the other party. It is only important that the other party is notified if any such
proceeding is being applied for by the other party.
Clause (a): This clause includes any basic human error that might occur during the drafting of
the award. Drafting errors can be corrected easily. This is an important provision because if such
errors are ignored then they can lead to a change in the meaning of the ruling and can stir trouble
during enforcement.
Clause (b): This clause mentions interpretation of an arbitral award. The only problem that is
faced by parties is that there are very few situations when both parties have an issue with the
meaning conveyed by the arbitral award. It creates problems if one party agrees and the other
party does not.
In cases where both the parties agree, it can be used for an interpretation conveying the clear
meaning of the arbitral award for better enforcement of the same.
2.Section 33(2) of the Arbitration and Conciliation Act
This sub-section puts a time cap on the passing of the interpretation by the arbitral tribunal if the
request under section 33(1) is accepted. The arbitration tribunal has to provide the interpretation
within 30 days of receiving the receipt of the request. The interpretation becomes part of the
arbitral award. An additional award is not passed in this case.
Section 33(3) of the Arbitration and Conciliation Act
This sub-section clarifies that correction and interpretation can take place if:
• It is requested by the parties; or
• The arbitral tribunal themselves correct the mistakes related to the categories
mentioned under sub-clause 1 of Section 33.

Additional award
Section 33(4) of the Arbitration and Conciliation Act
Sub-section (4) empowers the Arbitral Tribunal to make additional arbitral award in respect of
claims already presented to the Tribunal in the arbitral proceedings but omitted by the Arbitral
Tribunal provided:
• There is no contrary agreement between parties to the reference;
• A party to the reference, with notice to the other party to the reference, requests the
arbitral tribunal to make the additional award;
 • Such request is made within 30 days from the receipt of the arbitral award;
• The arbitral tribunal considers the request so made justifies; and

Additional arbitral award is made within sixty days from the receipt of such request by the
arbitral tribunal (sub-section 5).
It is also possible for the tribunal to extend this time cap if it deems necessary on the basis of
reasonable grounds (sub-section 6).
Section 33(7) of the Arbitration and Conciliation Act
Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional
arbitral award made under this section
Mcdermott International Inc. v. Burn Standard Co. Ltd., (2006),
The supreme court held that Sub-section (4) empowers the Arbitral Tribunal to make additional
arbitral award in respect of claims already presented to the Tribunal in the arbitral proceedings
but omitted by the Arbitral Tribunal provided:

Conclusion
It is safe to conclude that Section 33 is a very important part of the Arbitration and Conciliation
Act, 1996. This is because it plays a major role in protecting the interests of the parties and in
preventing the arbitral tribunal from making mistakes. It ensures transparency in the process and
ensures that no party suffers harm due to the mistakes of the arbitration tribunal.
To further ensure that the parties are not taken advantage of, a time-cap is placed upon the
proceedings so that there is no wastage of time and money. This way the objective of choosing
arbitration over traditional methods of dispute resolution is protected.
 CONCILIATION
It is an ADR technique in which a third party, generally known as a conciliator, helps the parties
involve to reach proper issues, produce options, give advice and try to conclude/resolution by the
of an agreement.
There is no clear definition for conciliation under the Indian laws. Conciliation is neither defined
under the Arbitration and Conciliation Act, 1996 nor the Code of Civil Procedure, 1908.
As conciliator is involved in this method, he/she may have expertise in one of the subject matter
and gives advice to the parties and come to a resolution for disposal of the case. A conciliator
can be a voluntary, court-approved, or as per mention in a contract. However, the person
appointed as a conciliator cannot give decisions or judgment regarding the dispute he/she dealing
with.
A conciliator can have sessions face-to-face or telephonic conversation and may hold separate
time for each party to have a session with them.
In conciliation proceedings with three conciliators, each party appoints one conciliator. The third
conciliator is appointed by the parties by mutual consent. Unlike arbitration where the third
arbitrator is called the Presiding Arbitrator, the third conciliator is not termed as Presiding
conciliator. He is just the third conciliator.
Features of conciliation
• Conciliators give their opinion regarding the dispute.
• The process of conciliation is voluntary.
• It is a non-binding process.
• A conciliator can become an arbitrator on the wish of the parties if no compromise could be
reached by the process of conciliation. This is known as Hybrid Conciliation.
• The settlement agreement will have the same importance and status as the arbitration award.
(Section 74)
Section 62 of the Act addresses the initiation of conciliation proceedings. To begin the process,
one party must send a written invitation to the other party briefly identifying the subject of the
dispute.. The conciliation proceedings can only proceed if the other party accepts the invitation.
If the other party rejects the invitation, there will be no conciliation proceedings. If no response
is received within 30 days of sending the invitation, it will be deemed non-acceptance if he so
elects, he shall inform in writing the other party accordingly
 Appointment of Conciliator under Arbitration and Conciliation Act (Section 63-64)
Number of Conciliators (Section 63)
• By default, there shall be one conciliator in a conciliation proceeding.
• However, the parties involved in the dispute can agree on the appointment of two or three
conciliators if they wish.
• When multiple conciliators are appointed, they are generally expected to act jointly in
conducting the conciliation proceedings.
According to the provisions of the Arbitration and Conciliation Act, the appointment of a
conciliator in conciliation proceedings follows the following guidelines:
Appointment by Agreement (Sec 64)
• In conciliation proceedings with one conciliator, the parties have the freedom to agree on the
name of a sole conciliator.
• In conciliation proceedings with two conciliators, each party has the right to appoint one
conciliator.
• In conciliation proceedings with three conciliators, each party has the right to appoint one
conciliator, and the parties may collectively agree on the name of the third conciliator, who will
act as the presiding conciliator.
Enlisting Assistance of an Institution or Person
Parties also have the option to seek the assistance of a suitable institution or person in connection
with the appointment of conciliators. This can be done through the following means:
• A party may request such an institution or person to recommend the names of suitable
individuals to act as a conciliator.
• The parties may agree that the appointment of one or more conciliators be made directly by such
an institution or person.
In making recommendations or appointments, the institution or person involved must consider
factors that ensure the appointment of an independent and impartial conciliator. Additionally,
when appointing a sole or third conciliator, they should consider the desirability of appointing a
conciliator of a nationality different from that of the parties.
These provisions ensure that the appointment of a conciliator is conducted in a manner that
upholds the principles of neutrality, independence, and impartiality, thereby promoting a fair and
effective conciliation process
Role of the Conciliator (Section 67)
Assisting Parties in Reaching an Amicable Settlement
The primary role of a conciliator, as stated in Section 67, is to assist the parties in reaching a
mutually acceptable resolution to their dispute.
This involves facilitating communication, encouraging dialogue, and exploring possible
solutions. The conciliator acts as a neutral and impartial third party, promoting a cooperative
environment where parties can freely express their concerns and interests.
Guided by Principles of Objectivity, Fairness, and Justice
A conciliator must uphold objectivity, fairness, and justice principles throughout the conciliation
proceedings. This means treating both parties equally without favouring one over the other.
The conciliator must consider various factors, including the rights and obligations of the parties,
trade usage, and the circumstances surrounding the dispute. By doing so, they ensure that the
proposed settlement aligns with the principles of equity and fairness.
Conducting the Conciliation Proceedings Appropriately
Section 67 grants conciliators the flexibility to conduct the conciliation proceedings in a manner
they deem appropriate. This enables them to tailor their approach to the case’s specific needs.
They may take into account the circumstances of the dispute, the expressed wishes of the parties,
and the need for a speedy resolution. Furthermore, if a party requests the conciliator to hear oral
statements, the conciliator should consider such requests.
Making Proposals for Settlement
At any stage of the conciliation process, a conciliator is empowered to make settlement proposals
to the parties. These proposals, which need not be in writing and are not required to be
accompanied by a statement of reasons, can serve as potential solutions for the parties to
consider. The aim is to guide the parties towards a settlement that effectively accommodates
their interests and resolves their dispute
Removal of Conciliation proceedings upon settlement between the parties (Section 76)
 MEDIATION
Introduction
Mediation is an alternative method of resolving disputes without resorting to the courts. It is a
structured, voluntary and interactive negotiation process where a neutral third-party uses
specialized communication and negotiation techniques to help the parties in resolving their
dispute. As a party-centred process, it focuses on the interests, needs and rights of the parties
Essential Features/Elements of Mediation
• Control OF PARTIES OVER MEDIATION PROCESS-
• Consent OF PARTIES- .
• Confidentiality- ..
• Economical AND LESS TIME CONSUMING
• Conducive to dispute resolution-
• Non-binding-
• Support by mediator-
• Refund of court fees-

Who is a Mediator?
A mediator is a neutral third party who assists both the parties to arrive at a settlement. The
mediator first initiates the meeting, then discusses about the problem in hand and helps the
parties to find possible solutions. It is important for a mediator to be unbiased and neutral. The
mediator does not provide with a solution. Both the parties themselves agree upon certain terms.
A mediator merely helps the parties to express their positions and listens to their disputes and
searches for a solution that address the needs of all and works towards a fair, workable
settlement. The parties themselves are the decision makers.

BARRIERS TO COMMUNICATION :
PHYSICAL BARRIERS :
i) lack of congenial atmosphere.
ii) lack of proper seating arrangements.
iii) presence of third parties.
iv) lack of sufficient time.
EMOTIONAL BARRIERS :
i) temperaments of the parties and their emotional quotient.
ii) feelings of inferiority, superiority, guilt or arrogance.
iii) fear, suspicion, ego, mistrust or bias.
iv) hidden agenda.
v) conflict of personalities
COMMUNICATION SKILLS IN MEDIATION
Verbal Communication is transmission of information or message through spoken words.
Non-verbal communication refers to the transmission of information or message from sender to
receiver without the use of spoken words. It includes written communication, body language,
tone, demeanor, attitude and other modes of non-verbal expression. It is often more spontaneous
than verbal communication and takes place under less conscious control. Therefore, it can
provide more accurate information.
Communication skills in mediation include:-
(A) Active Listening.
(B) Listening with Empathy.
(C) Body Language.
(D) Asking the Right Questions.
(A) ACTIVE LISTENING :
Parties participate in mediation with varying degree of optimism, apprehension, distress, anger,
confusion, fear etc. If the parties understand that they will be listened to and understood, it will
help in trust building and they can share the responsibility to resolve the dispute.
In active listening the listener pays attention to the speaker's words, body language, and the
context of the communication.
An active listener listens for both what is said and what is not said.
An active listener tries to understand the speaker's intended message, notwithstanding any
mistake, mis-statement or other limitations of the speaker's communication.
An active listener controls his inner voices and judgments which may interfere with his
understanding the speaker's message.
Active listening requires listening without unnecessarily interrupting the speaker. Parties must be
given uninterrupted time to convey their message. There is a difference between hearing and
listening. While hearing, one becomes aware of what has been said. While listening, one also
understands the meaning of what has been said. Listening is an active process.
Following are the commonly used techniques of active listening by the mediator:
Summarizing, Reflecting, re-framing, Acknowledging, apology, silence etc.
BARRIERS TO ACTIVE LISTENING : (i) Distractions, (ii) Inadequate time, (iii) Pre-
judging, Blaming, Criticizing etc.

(B) LISTENING WITH EMPATHY

In the mediation process, empathy means the ability of the mediator to understand and appreciate
the feelings and needs of the parties, and to convey to them such understanding and appreciation
without expressing agreement or disagreement with them.
Empathy shown by the mediator helps the speaker to become less emotional and more practical
and reasonable. Mediator should understand that Empathy is different from Sympathy.
(C) BODY LANGUAGE:
The appropriate body language of the listener indicates to the speaker that the listener is
attentive.
It conveys to the speaker that the listener is interested in listening and that the listener gives
importance to the speaker.
In the case of mediators the following can demonstrate an appropriate body language:-
(i) Symmetry of posture - It reflects mediator's confidence and interest.
(ii) Comfortable look - It increases the confidence of the parties.
(iii) Smiling face - It puts the parties at ease.
(iv) Leaning gently towards the speaker - It is a sign of attentive listening.
(v) Proper eye contact with the speaker - It ensures continuing attention.
(D) ASKING THE RIGHT QUESTIONS
In mediation questions are asked by the mediator to gather information or to clarify facts,
positions and interests or to alter perception of parties. Questions must be relevant and
appropriate.
However, questioning is a tool which should be used with discretion and sensitivity. Timing and
context of the questioning are important. Different types of questions will be appropriate at
different times and in different context. Appropriate questioning will also demonstrate that the
mediator is listening and is encouraging the parties to talk. However, the style of questioning
should not be the style of cross examination. Questions should not indicate bias, partiality,
judgment or criticism. The right questions help the parties and the mediators to understand what
the issues are.
Type of questions (a) Open Questions (b) Closed Questions (c) Hypothetical Questions:

STAGES OF MEDIATION
The functional stages of the mediation process are:
1) Introduction and Opening Statement
2) Joint Session
3) Separate Session(s)
4) Closing
STAGE 1: INTRODUCTION AND OPENING STATEMENT
Objectives
• Establish neutrality
• Create an awareness and understanding of the process
• Gain confidence and trust of the parties
• Establish control over the process
Seating Arrangement in the Mediation Room
At the commencement of the mediation process, the mediator shall ensure that the parties and/or
their counsel are present.
There is no specific or prescribed seating arrangement. However, it is important that the seating
arrangement takes care of the following:
To begin with, the mediator introduces himself by giving information such as his name, areas of
specialization if any, and number of years of professional experience.
Then the mediator declares that he has no connection with either of the parties and he has no
interest in the dispute.
The mediator will then request the counsel to introduce themselves.
The mediator will then confirm that the necessary parties are present with authority to negotiate
and make settlement decisions.
The Mediator's Opening Statement
The opening statement is an important phase of the mediation process. The mediator explains in
a language and manner understood by the parties and their counsel, the following:
• Concept and process of mediation, Stages of mediation, Role of the mediator, Role of
advocates, Role of parties, Advantages of mediation, Ground rules of mediation
Finally, the mediator shall confirm that the parties have understood the mediation process
and the ground rules and shall give them an opportunity to get their doubts if any, clarified.
STAGE 2: JOINT SESSION
Objectives
• Gather information
• Provide opportunity to the parties to hear the perspectives of the other parties
• Understand facts and the issues
• Understand obstacles and possibilities
Procedure
• The mediator should invite parties to narrate their case, explain perspectives, vent emotions and
express feelings without interruption or challenge. First, the petitioner and his counsel should be
permitted to explain or state his/her case/claim in his/her own words and present the case. Then,
respondent should be permitted to explain or state his/her case/claim in his/her own words and
present the case.
• The mediator should encourage and promote communication, and effectively manage
interruptions and outbursts by parties.
• The mediator may ask questions to elicit additional information when he finds that facts of the
case and perspectives have not been clearly identified and understood by all present.
• The mediator would then summarize the facts, as understood by him, to each of the parties to
demonstrate that the mediator has understood the case of both parties by having actively listened
to them.
• Parties may respond to points/positions conveyed by other parties.
• The mediator shall identify the areas of agreement and disagreement between the parties and
the issues to be resolved.
• The mediator should be in control of the proceedings and must ensure that parties do not 'take
over' the session by aggressive behaviour, interruptions or any other similar conduct.
• During or on completion of the joint session, the mediator may separately meet each party with
his counsel, usually starting with the plaintiff/petitioner.

STAGE 3: SEPARATE SESSION

Objectives
• Understand the dispute at a deeper level
• Provide a forum for parties to disclose confidential information which they do not wish to
share with other parties
• Shift parties to a solution-finding mood
• Encourage parties to generate options and find terms that are mutually acceptable.
Procedure
(i) RE - AFFIRMING CONFIDENTIALITY
During the separate session each of the parties and his counsel would talk to the mediator in
confidence. The mediator should begin by re-affirming the confidential nature of the process.
(ii) GATHERING FURTHER INFORMATION
The separate session provides an opportunity for the mediator to gather more specific
information and to follow-up the issues which were raised by the parties during the joint session.
(iii) REALITY - TESTING
After gathering information and allowing the parties to vent their emotions, can then, in order to
move the process forward, engage in REALITY-TESTING.
Techniques of Reality-Testing
Reality-Testing is often done in the separate session by:
1. Asking effective questions,
2. Discussing the strengths and weaknesses of the respective cases of the parties, without breach
of confidentiality, and/or
3. Considering the consequences of any failure to reach an agreement (BATNA/WATNA /
MLATNA analysis).
(iv) BRAIN STORMING
Brain Storming is a technique used to generate options for agreement.
There are 2 stages to the brain storming process:
1. Creating options
2. Evaluating options
Lastly, the mediator goes for Sub-Session and Exchange of Offers.

STAGE 4: CLOSING
(A) Where there is a settlement
Then comes the task of putting the agreement into writing. The parties and their lawyers can
draft the agreement; usually the mediator would be asked to assist. It is advisable to keep the
language simple, straightforward and crisp." The broad outlines of an agreement can be
developed and then the details worked in. The parties should sign the agreement. Cases vary and
each will have its own terms of settlement.
(B) Where there is no settlement
If a settlement between the parties could not be reached, the case would be returned to the
referral Court merely reporting "not settled". The report will not assign any reason for non
settlement or fix responsibility on any one for the non-settlement.

Q. Setting aside of arbitral award (Section 34)

What is Arbitral award
Once the arbitration proceedings have been completed, the arbitral tribunal grants an
arbitral/arbitration award, as the final award. An arbitral award can be monetary or non-
monetary.
According to Section 2(1)(c) of the 1996 Act an arbitral award includes an interim award..
Interim orders are orders that are valid only during the arbitration process. an interim award
under the 1996 Act forms a part of the final award, that is binding on the parties involved
34. Application for setting aside arbitral award.—
(1) Recourse to a Court against an arbitral award may be made only by an application for setting
aside such award
(2) An arbitral award may be set aside by the Court only if—
(a) the party making the application establishes that ,
(i) a party was under some incapacity, or
(ii) the arbitration agreement is not valid under the law, for the time being in force;or
(iii) the party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
(iv) the arbitral award deals with a dispute which does not fall within the terms of submission to
the arbitration, or it contains decisions on matters beyond the scope of the submission to
arbitration: or
(v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with
the agreement of the parties, or
Rajendra Krishan Kumar v. Union of India the court held that the award was invalid as it
contains decisions on matters beyond the scope of the submission to arbitration
(b) the Court finds that—
(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for
the time being in force, or
(ii) the arbitral award is in conflict with the public policy of India.
According to Explanation 1- An award is said to be in conflict with the public policy of India,
only if,—
i) the making of the award was induced or affected by fraud or corruption or was in violation of
section 75 or section 81; or
ii) it is in contravention with the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice..
Renusagar Power Co. Ltd. v. General Electric Co
the supreme court held that an arbitral award is invalid, if it is in contravention with the
fundamental policy of Indian law
(2A) An arbitral award arising out of arbitrations other than international commercial
arbitrations, may also be set aside by the Court, if the Court finds. that the award is affected by
patent illegality appearing on the face of the award:
Oil& Natural Gas Corporation Ltd. v. Saw Pipes Ltd held that an award would be patently
illegal if it is contrary to substantive provisions of law, of the arbitration act, or terms of the
contract
(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 been disposed of by the
arbitral tribunal:
(4) On receipt of an application under sub-section (1), the Court may, , adjourn the proceedings
for a period of time in order to give the arbitral tribunal an opportunity to take action to
eliminate the grounds for setting aside the arbitral award.
(5) An application under this section shall be filed by a party only after issuing a prior notice to
the other party
(6) An application under this section shall be disposed of, within a period of one year from the
date on which the notice is served upon the other party