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SEC 34 OF THE ARBITRATION AND CONCILIATION ACT

                               


INTRODUCTION

In current scenario, with the advent of commercialization on its utmost peak, no viable offer / deal can be said to complete without reducing the same into writing. In other words, for every work undertaken, parties come to consensus which can be finalized only after entering into an agreement, Now once agreement is entered between the parties, it is inevitable that there shall be a need to choose a machanism in order to settle the dispute if any that might arise between the parties during the execution of the said agreement. Hence, most often, in recent times, almost every agreement which is commercial in nature, contains an arbitration clause. As per this, it is agreed between the parties that in case any dispute arise between them, then the same can be governed by the principles of Arbitration & Conciliation Act. Once, the arbitrator is appointed by whatever procedure as opted by the parties, he directs each party to represent their case before him , and after hearing them, passes an order which is commonly termed as AWARD, which is equivalent to the decree passed by the civil court.

NOW LET SEE IN CASE A PARTY AGGRIEVED BY THE AWARD WANTS TO CHALLENGE THE SAME

In case, a party to the agreement against whom an award is passed is aggrieved by it, in such a scenario the party so aggrieved can challenge the award so by filing a petition under Sec 34 of the  Act. Some of the common reasons upon which the award may be challenged are :-

the aggrieved party was under some incapacity;

the arbitration was not valid as per law;

the aggrieved party has not been properly served;

the dispute upon which award was passed was not being contemplated at the time of the entering the agreement and so on.

Moreover, it is also made clear by the statute that the said application shall be made within the time period of 90 days of receipt of the arbitral award. further, in case party fails to file the same within the prescribed period, the court may entertain the said application within period of further 30 days only if the party can show to the court sufficient cause of his non-filing within time.

CONCLUSION

This provision of the Act can be availed of to challenge an award by the Arbitrator. 


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