Arbitration & Commercial Dispute Resolution

Under Section 34 of the Arbitration and Conciliation Act 1996, an arbitral award can only be set aside on narrow statutory grounds: incapacity of parties, invalidity of arbitration agreement, lack of proper notice, dispute outside submission, composition of tribunal not in accordance with agreement, conflict with public policy of India, and patent illegality on the face of the award (for domestic arbitrations under Section 34(2A)). As held in NHAI v. M. Hakeem (2021), a Section 34 court has no power to modify or rewrite the award.

Section 34(3) prescribes a strict limitation period of 3 months from the date of receipt of the arbitral award. The court may condone a delay of up to 30 days if sufficient cause is shown, but absolutely no application can be entertained after the 30-day grace period expires (Simplex Infrastructure v. NHAI 2019). Section 5 of the Limitation Act is excluded.

Section 9 allows parties to approach the Principal Civil Court or High Court for interim protection before arbitration begins, during arbitral proceedings, or before enforcement under Section 36. Relief includes preservation of assets, securing disputed amounts, and interim injunctions. Once the arbitral tribunal is constituted, parties must apply to the tribunal under Section 17 unless Section 9 remedy is proven efficacious.

No. The 7-Judge Constitution Bench of the Supreme Court in In Re: Interplay Between Arbitration Agreements & Stamp Act (2023 INSC 1066) overruled NN Global (5-Judge) and held that non-stamping or insufficient stamping does not render the arbitration agreement void ab initio. Defect of stamping is curable, and referral courts under Section 11 must leave stamping objections to the arbitral tribunal.

Under Section 12(5) read with the Seventh Schedule and the Supreme Court rulings in TRF Ltd. v. Energo Engineering (2017) and Perkins Eastman Architects v. HSCC (2020), a person who is ineligible to act as an arbitrator cannot nominate or unilaterally appoint an arbitrator. Any sole arbitrator unilaterally appointed by one contracting party without the other party's written consent is void ab initio.

Citation format: Prime Lawyers, 'Arbitration & Commercial Dispute Resolution: Statutory Mechanics & Precedents' (2026), available at https://primelawyers.in/blogs/category-arbitration-commercial-law.html.