What happens when an arbitral award is set aside in India?
Asked by: Daniela Auer | Last update: November 17, 2025Score: 4.3/5 (45 votes)
Once an award has been set aside by the courts in India, it is no longer enforceable. The first recourse available to a party against a domestic arbitral award would be to file an application for setting aside under section 34 of the Arbitration Act.
What does it mean to set aside an arbitral award?
Where an award has been set aside, its legal existence no longer subsists – it no longer has the effect of a final and binding court judgment between the parties and is no longer enforceable.
What is the time limit to set aside arbitration award?
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 award or, if a request had been made under article 33, from the date on which that request had been disposed of by the arbitral tribunal.
Can an arbitration award be challenged in India?
An arbitral award can be challenged if it deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or it contains decisions on matters beyond the scope of the submissions to arbitration.
What are the grounds for overturning an arbitration award?
The merits of the dispute are not considered and the award can only be vacated where: (1) the award was procured by fraud or corruption; (2) there was corruption in the arbitrator; (3) the arbitrator committed misconduct resulting in substantial prejudice; (4) the arbitrators exceeded their powers; (5) the arbitrator ...
Legal Alert: Arbitral award cannot be set aside by High Courts invoking writ jurisdiction SC
How often are arbitration awards overturned?
More than a third were overturned, in whole or in part. Another 6% were remanded back to the arbitrator for reconsideration. Arbitrators possess considerable authority over agency operations; their awards are legally binding unless the Authority overturns them.
What are the three reasons a court will set aside an arbitration award?
Specifically, Chapter 1, Section 10 of the FAA states that a court may vacate an arbitral award only if it finds that © 2019 Law Business Research Ltd Page 4 United States 569 one of the following limited grounds applies: (1) the award is a result of corruption or fraud; (2) evident partiality or corruption of an ...
Can you go to court after arbitration in India?
(1) Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-section (2) and sub-section (3). (ii) the arbitral award is in conflict with the public policy of India. (iii) it is in conflict with the most basic notions of morality or justice.
What is the time limit for arbitral award?
"(1) The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference.
Why is arbitration failing in India?
Reasons for the Failure of the Institutional Arbitration in India. The development of Institutional Arbitration has been hampered by a lack of support from the federal and state governments. More court intervention in the arbitration process. In the arbitral institutions, there is a lack of infrastructure.
How do I vacate an arbitration award?
Any party to an arbitration in which an award has been made may petition the court to confirm, correct or vacate the award. The petition shall name as respondents all parties to the arbitration and may name as respondents any other persons bound by the arbitration award.
How long can a case be in arbitration?
Arbitration is similar to going to court, but faster, cheaper and less complex than litigation. If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.
How long do you have to appeal an arbitration award?
Once an arbitrator issues an award, either an agency or a union may appeal the arbitrator's award by filing an "exception" with the Authority within 30 days after the date on which the Arbitrator served the award on the parties.
What are the grounds for setting aside arbitral award in India?
- the party was under some incapacity;
- the arbitration agreement is not valid under the law chosen by the parties or, absent an agreement, not valid under the law in force at the time;
Is an arbitral award final?
An arbitration award is final and there is no provision for an appeal arising therefrom under Nigerian law.
Is an arbitration award a final judgment?
Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction. This means that the court can enforce it like it was any other court judgment.
What happens after an arbitration award in India?
Once an award is made, the award holder has to wait for a period of 90 days to apply to the appropriate forum for its execution. In this period of 90 days, the award might be challenged under Section 34 for the award to be set aside.
What is the limitation period for arbitration in India?
Decision of the Court
According to the Court, under the Limitation Act, parties have a three-year period from the date when the right to apply accrues to file applications under Section 11(6) of the Arbitration Act.
How long do you have to confirm an arbitration award?
The Federal Arbitration Act (“FAA”) provides guidance for the confirmation of domestic arbitration awards in federal courts. [5] The party applying for the confirmation must do so in the proper federal court within one year after the arbitrator's decision.
What happens if I don't respond to arbitration in India?
(5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made, upon request of a party, by 1[the Supreme Court or, ...
Can you still sue after arbitration?
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
What is the finality of arbitral award in India?
Arbitral Award- Finality [Section 35]
An award by an arbitral tribunal is final when: The Period that is provided to make an appeal challenging the award in the court expires; And in circumstances when a party has filed an application in the court challenging the award and the same gets rejected.
How do you overturn an arbitration award?
The answer is yes, through a process called vacatur, i.e., having the award vacated or canceled. The vacatur process is set forth in two statutes: the Federal Arbitration Act and the applicable state arbitration act governing the dispute. Depending on the case, one or both statutes may be applicable.
Why is arbitration better than going to court?
Quicker Resolution: One of the biggest benefits of arbitration is how quickly disputes can be settled. Without the need for a drawn-out litigation process, parties can expect a faster resolution. Lower Cost: Arbitration is generally considered less expensive than going through the courts.
Why a court generally will set aside an arbitrator's award for one of the following reasons?
Generally, a court will vacate an arbitral award for the following reasons: the arbitrator violated the arbitration agreement; the arbitrator was not independent; the award was obtained by corruption, fraud or undue means; and the arbitrator exceeded his/her powers – that is, the arbitrator ruled on matters that the ...