Expert Legal Services for Setting Aside Arbitral Awards under Section 34 

When an arbitral award doesn’t serve your interests or contains fundamental flaws, setting aside arbitral award proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 provide a crucial legal remedy. At AMLEGALS, we specialize in challenging arbitral awards through comprehensive legal strategies that address both procedural violations and substantive errors.

With recent 2025 Supreme Court developments in Gayatri Balasamy v. ISG Novasoft Technologies, courts now have limited powers to modify arbitral awards rather than setting them aside entirely. This landmark ruling has transformed the landscape of arbitral award challenges, making expert legal guidance more critical than ever. Our experienced arbitration team navigates these complex waters to protect your interests while ensuring compliance with strict procedural requirements.

Whether you’re facing an award based on an invalid arbitration agreement, procedural violations, or decisions beyond the scope of arbitration, AMLEGALS provides strategic representation across Ahmedabad, Mumbai, Chennai, Delhi, Bangalore, Hyderabad, Pune, Kolkata and nationwide.

Understanding Section 34 of the Arbitration and Conciliation Act, 1996

Section 34 serves as the primary mechanism for challenging domestic arbitral awards in India. The provision establishes limited grounds for judicial intervention, reflecting the legislature’s intent to minimize court interference while providing essential safeguards against fundamentally flawed awards.

Key Legal Framework:

• Limited Recourse: Courts can only set aside awards on specific statutory grounds

• Time Limitation: Applications must be filed within 3 months of receiving the award

• Narrow Scope: Judicial review is restricted to procedural and legal violations, not merits

• Severability: Courts can set aside portions of awards if separable from valid determinations

Comprehensive Grounds for Setting Aside Arbitral Awards

Under Section 34(2), an arbitral award may be set aside if any of the following grounds are established:

A. Procedural Grounds [Section 34(2)(a)]

1. Incapacity of Parties

• A party to the arbitration agreement was under legal incapacity

• Mental incapacity, minority, or lack of authority to enter agreements

• Evidence required: Medical records, legal documentation of incapacity

2. Invalid Arbitration Agreement

• The arbitration agreement is not valid under applicable law

• Void agreements due to illegality, fraud, or coercion

• Jurisdictional challenges based on agreement scope

3. Lack of Proper Notice or Inability to Present Case

• Party not given proper notice of arbitrator appointment or proceedings

• Unable to present case due to procedural violations

• Denial of natural justice or fair hearing principles

4. Award Beyond Scope of Arbitration

• Matters outside submission to arbitration addressed in the award

• Decisions on issues not contemplated by the arbitration agreement

• Severability provision: Only affected portions may be set aside if separable

5. Improper Tribunal Composition or Procedure

• Arbitral tribunal composition not in accordance with party agreement

• Procedural violations contrary to agreed rules or statutory requirements

• Bias, conflict of interest, or misconduct by arbitrators

B. Substantive Grounds [Section 34(2)(b)]

6. Subject Matter Not Capable of Settlement by Arbitration

• Disputes involving criminal matters, matrimonial issues, or statutory violations

• Matters of public interest that cannot be privately adjudicated

7. Public Policy Violation or Patent Illegality

• Award contrary to public policy of India

• Patent illegality appearing on the face of the award

• Violation of fundamental principles of Indian law

• Decisions against justice, equity, and good conscience

Recent 2025 Supreme Court Developments

The Supreme Court’s landmark decision in Gayatri Balasamy v. ISG Novasoft Technologies has significantly impacted Section 34 proceedings:

Key Developments:

• Limited Modification Powers: Courts can now modify arbitral awards in specific circumstances rather than complete set-aside

• Severability Emphasis: Enhanced focus on preserving valid portions of awards while addressing flawed components

• Cost and Delay Reduction: Modification powers aimed at avoiding complete re-arbitration

• Judicial Restraint: Reaffirmation that modification doesn’t permit merit review of arbitral decisions

Practical Implications:

• Strategic advantage in partial challenges where only specific award portions are problematic

• Enhanced settlement negotiations knowing courts prefer modification over complete nullification

• Greater emphasis on precise legal arguments targeting specific award defects

Step-by-Step Section 34 Application Procedure

Phase 1: Pre-Application Analysis

1. Award Review: Comprehensive analysis of arbitral award for potential grounds

2. Evidence Gathering: Collection of supporting documentation and legal precedents

3. Timeline Assessment: Ensure compliance with 3-month limitation period

4. Strategic Planning: Determine whether to seek complete set-aside or partial modification

Phase 2: Application Filing

1. Petition Drafting: Detailed application specifying grounds under Section 34(2)

2. Court Selection: File in appropriate court having territorial jurisdiction

3. Documentation: Submit certified copies of award, arbitration agreement, and evidence

4. Notice Service: Mandatory prior notice to opposing party as per Section 34(5)

Phase 3: Court Proceedings

1. Initial Hearing: Court examines preliminary objections and procedural compliance

2. Arguments: Detailed submissions on legal and factual grounds for set-aside

3. Counter-Arguments: Respondent’s defense of the arbitral award

4. Final Orders: Court’s decision on set-aside application with reasoned judgment

Why AMLEGALS for Section 34 Proceedings?

Specialized Expertise

• Proven Track Record: Arbitration is a specialised areas of practice of the firm.

• Constitutional Court Practice: Vast experience of practice in Constitutional Courts related to arbitration

• Comprehensive Analysis: Thorough award review identifying all potential grounds for challenge

Strategic Approach

• Customized Strategy: Tailored approach based on specific award defects and client objectives

• Evidence Management: Systematic documentation and presentation of supporting materials

• Timeline Compliance: Rigorous adherence to procedural deadlines and court requirements

Pan-India Presence

• Major Cities Coverage: Dedicated arbitration teams in Ahmedabad, Mumbai, Chennai, Delhi, Bangalore, Pune, Kolkata and Hyderabad

• Court Representation: Experienced advocates familiar with local court procedures and judicial preferences

• Client Support: 24/7 consultation availability for urgent arbitration matters

Essential Tips for Successful Section 34 Applications

Best Practices for Award Challenges:

• Act Immediately: Begin legal analysis within days of receiving the award

• Preserve Evidence: Maintain all arbitration records, correspondence, and procedural documents

• Focus on Legal Grounds: Avoid merit-based challenges; emphasize procedural and legal violations

• Consider Partial Set-Aside: Evaluate whether complete nullification is necessary or partial modification sufficient

• Strategic Timing: File applications well before the 3-month deadline to allow for potential amendments

Common Mistakes to Avoid:

• Delayed filing beyond the statutory limitation period

• Merit-based challenges instead of legal/procedural grounds

• Inadequate documentation of procedural violations

• Failure to serve proper notice to opposing parties

• Generic applications without case-specific legal arguments

FAQs 

Q: What is Section 34 of the Arbitration and Conciliation Act?
A: Section 34 provides the legal framework for challenging and setting aside arbitral awards in India on specific grounds including procedural violations, invalid agreements, and public policy contraventions.

Q: What are the main grounds for setting aside an arbitral award under Section 34?
A: Key grounds include incapacity of parties, invalid arbitration agreements, lack of proper notice, awards beyond arbitration scope, improper tribunal composition, and violations of public policy or patent illegality.

Q: What is the time limit for filing a Section 34 application?
A: Applications must be filed within 3 months from the date of receiving the arbitral award, with possible condonation of delay for sufficient cause shown.

Q: Can courts modify arbitral awards under Section 34?
A: Yes, as per the 2025 Supreme Court ruling in Gayatri Balasamy, courts have limited powers to modify arbitral awards rather than setting them aside entirely, particularly for severable portions.

Q: What documents are required for a Section 34 application?
A: Essential documents include the original arbitral award, arbitration agreement, evidence supporting grounds for set-aside, and proof of service of notice to the opposing party.

Q: Can only part of an arbitral award be set aside?
A: Yes, if the challenged portion is severable from the rest, courts can set aside only the defective part while preserving valid determinations under the severability provision.

Q: What happens if a Section 34 application is successful?
A: If successful, the court sets aside the award (wholly or partially), which may result in fresh arbitration proceedings for the disputed matters or enforcement of the remaining valid portions.

Q: How long do Section 34 proceedings typically take?
A: Section 34 proceedings generally on an average take 12-18 months, but vary depending on case complexity, court schedules, and whether appeals are filed against the initial decision.

Q: Can foreign arbitral awards be challenged under Section 34?
A: No, Section 34 applies only to domestic arbitral awards. Foreign awards are governed by different provisions under the Arbitration and Conciliation Act.

Q: Why should I choose AMLEGALS for Section 34 proceedings?
A: AMLEGALS offers specialized arbitration expertise, comprehensive case analysis, and strategic representation across major Indian cities with deep understanding of 2025 legal developments.

Contact AMLEGALS 

You may contact us  for a confidential consultation for execution of arbitral award in India.

• Email: info@amlegals.com
• Boardline : +91-8448548549
• Offices: Ahmedabad |  Bengaluru | Chennai | Hyderabad | Mumbai | New Delhi | Kolkata | Prayagraj | Pune | Surat