Legal Approach

Recourse against the Arbitral Award: Most murkier aspect of the arbitration is the recourse to the arbitral award made by an arbitrator. The Arbitration & Conciliation, 1996 act has narrowed down the scope of interference with the award passed by the arbitrator. Section 34 of The Arbitration & Conciliation, 1996 provides for recourse to the arbitrator award. Section34. Application for setting aside arbitral award— (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). (2) An arbitral award may be set aside by the court only if— (a) the party making the application furnishes proof 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 ...

Statutory Definition: Section 7 of the Arbitration and Conciliation Act, 1996 defines Arbitration Agreement as an agreement between the parties to a contract. The Arbitration and Conciliation Act, 1996 defined the arbitration agreement as below: Section 7. Arbitration Agreement. (1) In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is in writing if it is contained in— (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or (c) an exchange of statements...