INDIA Law and Practice Contributed by: Amit Mishra and Mitakshara Goyal, Svarniti Law Offices
11. Review of an Award 11.1 Grounds for Appeal
reliefs under Section 34, such as modification of the post-award interest rate or partial setting aside of the award, rather than a complete annulment. Courts may also adjourn proceedings and remit the matter back to the arbitral tribunal to eliminate grounds for setting aside, as provided under Section 34 (4). The Act does not permit a review of the merits of the case or an appeal on questions of law or fact. The court’s intervention is strictly limited to the grounds enumerated in Section 34, reinforcing the finality and binding nature of arbitral awards. 11.2 Excluding/Expanding the Scope of Appeal The provisions of the ACA that govern applications to set aside arbitral awards are both mandatory and non-derogable. This means that parties do not have the freedom to contractually exclude, limit or expand these statutory grounds for challenging an award. The legal framework ensures that the grounds for setting aside an award, as specified in the Act, remain uniform and cannot be altered by party agreement. However, the proposed 2024 Amendment Bill to the ACA introduces a significant development, contem - plating the establishment of an appellate arbitral tri - bunal. Under this proposal, parties may agree to refer disputes to an appellate arbitral tribunal for review before approaching the courts with an application to set aside the award. This introduces an additional layer of review within the arbitral process itself, allow - ing parties to seek an appellate remedy by mutual Indian courts maintain a deferential stance towards the findings and conclusions of arbitral tribunals. They do not undertake a fresh evaluation of the case, nor do they re-examine the evidence or reassess the mer - its: courts respect the tribunal’s authority and refrain from substituting their own judgment for that of the arbitrators. agreement prior to judicial intervention. 11.3 Standard of Judicial Review When it comes to foreign arbitral awards, the scope of judicial intervention is even narrower. Courts are expressly prohibited from reviewing the merits of the dispute and may only examine the award within the
Under Indian law, there is no provision for a direct appeal against an arbitral award. A party dissatisfied with an award can only seek to have it set aside by filing an application under Section 34 of the ACA. The grounds for setting aside an award are narrowly defined, as follows, and mirror the standards in Article • the arbitration agreement is invalid under the law chosen by the parties or, failing that, under Indian law; • the party applying to set aside the award was not given proper notice of the appointment of an arbi - trator or of the arbitral proceedings, or was other - wise unable to present its case; • the award addresses disputes not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions beyond the scope of the arbitration agreement; • the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the parties’ agreement or applicable law; • the subject matter of the dispute is not arbitrable under Indian law; • the award is in conflict with the public policy of India, which includes awards induced by fraud or corruption and those contrary to the fundamental policy of Indian law or in conflict with the most basic notions of morality and justice; and • patent illegality was apparent on the face of the award. Only two grounds are available for setting aside a for - eign award: 34 of the UNCITRAL Model Law: • a party was under incapacity; • the subject matter of the difference is not capable of settlement by arbitration under the law of India; or • the enforcement of the award would be contrary to the public policy of India. Recent judicial developments, such as the Gayatri Balasamy v ISG Novasoft Technologies Limited case, have clarified that parties may also seek specific
336 CHAMBERS.COM
Powered by FlippingBook