Key points
- Limitation is three months from receipt of the award, extendable by a maximum of 30 days; the court cannot condone further delay.
- Grounds are limited: incapacity, invalid agreement, lack of notice, award beyond the reference, improper tribunal composition, non-arbitrability, conflict with public policy, and for domestic awards, patent illegality.
- The court does not sit in appeal over the award; re-appreciation of evidence is not permitted.
The grounds
Section 34(2)(a) lists grounds the applicant must prove: a party was under an incapacity; the arbitration agreement is invalid; the applicant was not given proper notice or was unable to present its case; the award deals with disputes outside the reference; or the tribunal's composition or procedure departed from the agreement. Section 34(2)(b) lets the court set aside an award on its own view that the subject matter is not arbitrable or that the award conflicts with the public policy of India, which after the 2015 amendment means fraud or corruption, contravention of the fundamental policy of Indian law, or conflict with basic notions of morality and justice.
Patent illegality
For domestic awards, Section 34(2A) adds patent illegality appearing on the face of the award. In Ssangyong Engineering v. NHAI (2019) the Supreme Court explained that this covers a decision contrary to the substantive law, a construction of the contract that no fair-minded person would take, and perverse findings; it does not cover erroneous application of law or re-appreciation of evidence.
Limitation
The petition must be filed within three months of the date the party received the signed award, or of the disposal of a correction request under Section 33. The court can extend by a further 30 days on sufficient cause, and not beyond. Filing a defective petition within time and curing defects later is permitted only if the initial filing was not a mere sham.
Stay of the award
Filing a Section 34 petition does not automatically stay enforcement. A separate application for stay is needed, and the court usually requires deposit of the awarded amount or security as a condition.
Frequently asked questions
Can the court modify an arbitral award?
In 2025 a Constitution Bench of the Supreme Court held that courts have a limited power to modify an award in specific situations, such as severing invalid portions or correcting clerical errors, but not to rewrite the award.
How long does a Section 34 petition take in Delhi?
The Act contemplates disposal within one year of service of notice. In the Delhi High Court, contested petitions commonly take one to two years.
Is a pre-deposit required to challenge an award?
Not for filing the petition, but to obtain a stay of the award the court normally requires deposit of the amount or adequate security.
Related practice area: Commercial Litigation & Arbitration
This article is for general information and does not constitute legal advice. Laws, rules and limitation periods change and depend on the facts; please take advice on your own situation before acting. Reading this article does not create a lawyer-client relationship with Akhtars Legalitarian.