Appeal, Challenge And Modification Of Arbitral Awards


The topic of arbitral awards comes under the Arbitration & Conciliation Act, 1996.

An arbitration award is a determination on the merits by an arbitration tribunal in arbitration and is analogous to a judgment in a court of law. It is referred to as an ‘award’ even where all of the claimant’s claims fail, or the award is of a non-monetary nature.

These awards are granted by the arbitral tribunal (An arbitral tribunal (or arbitration tribunal) is a panel of one or more adjudicators which is convened and sits to resolve a dispute by way of arbitration. The tribunal may consist of a sole arbitrator, or there may be two or more arbitrators, which might include either a chairman or an umpire) under arbitration proceedings (Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, or legislation has decreed, will be final and binding) and these proceedings are conducted under the arbitration clause (arbitration is considered to be an important alternative disputes redressal process which is to be encouraged because of high pendency of cases in the courts and cost of litigation. Arbitration has to be looked up to with al earnestness so that the litigant public has faith in the speedy process of resolving their disputes by this process[1]) of the Arbitration & Conciliation Act,1996 which has the object to establish a uniform legal framework for the fair and efficient settlement of disputes arising in international commercial arbitration[2].

Meaning of Arbitral Award

An arbitral honor or intervention grant alludes to a choice made by a discretion court in a mediation continuing. An arbitral honor is closely resembling a judgment in a courtroom. An example of arbitration would be when two people who are divorcing cannot agree on terms and allow a third party to come in to help them negotiate. The process to confirm the arbitral award proceeds much faster than a regular lawsuit. This speed and efficiency are demonstrated by the fact that a party seeking to confirm can do so as soon as ten days after the arbitrator makes an award.

Concept of Arbitral Award

The requirements or mould of an arbitral award is – regardless, an honor should:

i) be recorded as a hard copy;

ii) contain purposes behind the choice, except if the gatherings have concurred in any case or on the off chance that it is an assent grant;

iii) express the date and the spot of discretion, and

iv) be marked by the entirety of the authorities or contain a clarification for any missing signature(s).

Basis of an arbitral award

A discretion of grant is the honor allowed by the judge in their choice. This honor can be cash one gathering hosts to pay to the next get-together. It can likewise be a non-money related honor, for example, halting a specific business practice or including a work impetus.

An Arbitrator is designated distinctly to determine a debate which implies there is a particular supplication. Yet, without a particular petition, the intervention procedures will be a pointless activity. It isn’t just troublesome however wrong with respect to the Arbitrator to expect things and grant. The award must contain reasons; the honor must express the “seat” of the intervention (where the mediation occurred); and. the honor must express the date whereupon it is made. This is significant for the estimation of intrigue.

Various kinds of arbitral awards are there:-

  1. Domestic Arbitration is a form of ADR where one or more person(s) are appointed to hear a case that takes place within one jurisdiction. With arbitration an award is made by the Arbitrator, this award is binding and enforceable in court.
  2. Institutional arbitration
  3. Foreign awards
  4. Ad hoc arbitration

Status of the arbitral award in India

Arbitral honors allude to the choice of an arbitral council, regardless of whether in a local or global intervention. Arbitral honors incorporate interval grants. Residential honors are administered by Part I though remote honors are represented by part II of the Arbitration and Conciliation Act of India. The Arbitration and Conciliation Act contains no particular arrangements on separation. Be that as it may, Indian law perceives the principle of distinguishableness and a substantial intervention proviso is divisible from the parent contract and comprises an understanding without anyone else.

There is no arrangement for request against an arbitral award and it is conclusive and official between the gatherings. In any case, a bothered gathering may take a plan of action to law court for putting aside the intervention grant on specific grounds indicated in Section 34 of the Arbitration and Conciliation Act, 1996.

Legal provisions of Arbitral awards

Section 36 proclaims that an arbitral honor has the power of the declaration, however, in certainty it’s anything but a pronouncement. An ex parte Award passed by an Arbitral Tribunal under Section 28 of the Act is additionally enforceable under Sec. 36. Indeed, even a settlement came to by the gatherings under Section 30 of the Act that can be enforceable under the section.

An award may be challenged on what may be broadly described as procedural grounds, such as failure to give proper notice of the appointment of an arbitrator. An award may be challenged on substantive grounds, on the basis that the arbitral tribunal made a mistake of law or on the grounds of a mistake of fact

Legal provisions related to Appeal, Challenge and Modification of Arbitral Awards

There are limited rights of review and appeal of arbitration awards.

There is no provision for appeal against an arbitral award and it is final and binding between the parties. However, an aggrieved party may take recourse to a law court for setting aside the arbitration award on certain grounds specified in Section 34 of the Arbitration and Conciliation Act, 1996.

According to section 34(2), an award may be set aside on the application of an aggrieved party. Under certain circumstances, the court can set aside the award made by the arbitral tribunal even without an application made by the party.

The option to challenge an award is a legal right and consequently can’t be postponed or removed by an understanding between the parties.


What is the method for challenging award?

An application to challenge the award must be recorded in court inside a quarter of a year of receipt of the honor. In specific conditions, the court may consider an application for putting aside inside a further time of 30 days in the event that it is fulfilled that there was an adequate reason for such postponement. On the off chance that the court dismisses the application for the challenge, the honor is enforceable as a pronouncement of the court. The fruitless party has just one option to claim a request saving or declining to put aside an honor and no subsequent intrigue can be made against a re-appraising request. In any case, there is a sacred option to document an intrigue under the steady gaze of the Supreme Court of India (an ‘uncommon leave appeal’). The Supreme Court will practice its watchfulness sparingly and consider such an intrigue just if there is a gross blunder of law or a significant issue of law is included.

The parties can’t go into consent to postpone their entitlement to challenge an arbitral award.

On what grounds can parties appeal an award?

The Arbitration and Conciliation Act takes into account difficulties to the honor. The reason for testing household grants under Indian law are to a great extent dependent on Article 34 of the UNCITRAL Model Law.

Parties can raise on the accompanying grounds:

  • absence of limit of the gatherings to close a mediation understanding;
  • absence of a legitimate mediation understanding;
  • absence of appropriate notification of arrangement of a judge or of the discretion procedures, or powerlessness of involved with present its case;
  • absence of unprejudiced nature or autonomy of the judge;
  • creation of the court or lead of the procedures as opposed to the compelling understanding of the parties;
  • non-arbitrability of the topic of the contest; or
  • struggle with the open approach of India


The open arrangement ground has been barely characterized by the Arbitration and Conciliation (Amendment) Act, limiting its application to instances of extortion or defilement really taking shape of the honor, where the honor is in “contradiction with the basic approach of Indian law”, or where the honor is in “struggle with the most essential thoughts of ethical quality or equity”. It further explains that the open strategy ground will not involve a survey on the benefits of the question. In local mediations, “patent wrongdoing showing up on the essence of the award” gives an extra open approach based ground for challenge.

[1] State of Jammu & Kashmir v. Dutt Pandit, AIR 1999 SC 3196

[2] Bhatia International v. Bulk Trading S.A. (2002) 4SCC 105

This Article is Authored by Shrishti Sharma, 3rd Year BBA LLB Student at Delhi Metropolitan Education, Noida affiliated to GGSIPU.

Also Read – Recognition and Enforcement of Arbitral Awards

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