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The Arbitration and Conciliation Act, 1996: page 24
The Arbitration and Conciliation Act, 1996, India Code delivered snapshot 6fb32e5ffe258174, physical page 24. Unreviewed extraction.
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(a) the party making the application 1[establishes on the basis of the record of the arbitral tribunal
that]—
(i) a party was under some incapacity, or
(ii) the arbitration agreement is not valid under the law to which the parties have subjected it
or, failing any indication thereon, 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 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
submission to arbitration:
Provided that, if the decisions on matters submitted to arbitration can be separated from those
not so submitted, only that part of the arbitral award which contains decisions on matters not
submitted to arbitration may be set aside; or
(v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties, unless such agreement was in conflict with a provision of this
Part from which the parties cannot derogate, or, failing such agreement, was not in accordance
with this Part; or e
(b) the Court finds that— od
aC
(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law
for the time being in force, or
di
(ii) the arbitral award is in conflict with the public policy of India.
2 In
[Explanation 1.—For the avoidance of any doubt, it is clarified that an award is 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.
Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the
fundamental policy of Indian law shall not entail a review on the merits of the dispute.]
3
[(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 vitiated by patent illegality
appearing on the face of the award:
Provided that an award shall not be set aside merely on the ground of an erroneous application of the
law or by reappreciation of evidence.]
(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:
Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from
making the application within the said period of three months it may entertain the application within a
further period of thirty days, but not thereafter.
(4) On receipt of an application under sub-section (1), the Court may, where it is appropriate and it is
so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the
1. Subs. by Act 33 of 2019, s. 7, for “furnishes proof that” (w.e.f. 30-8-2019).
2. Subs. by Act 3 of 2016, s. 18, for the Explanation (w.e.f. 23-10-2015).
3. Ins. by s. 18, ibid. (w.e.f. 23-10-2015).
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