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Section 34 of the Arbitration and Conciliation Act, 1996: Challenge to an Arbitral Award

An award may be set aside only on the grounds in section 34(2) and, for arbitrations other than international commercial arbitrations, section 34(2A). The application may not be...

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Arbitration
Published
March 23, 2026
Last updated
Oct 3, 2026
Reading time
9 min
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Last updated: October 2026Applies to: FY 2026-27 (AY 2027-28)Verified against: Government sources

Section 34 is the only route in Part I for taking an arbitral award to a Court: an application to set it aside, on listed grounds, within a short period. It is the whole of Chapter VII, headed "Recourse against arbitral award". This explainer goes through the section sub-section by sub-section as per the India Code consolidated text consulted; later amendments should be checked. If an award has gone against you, or you need to defend one, our legal dispute resolution team can assess the grounds and the dates.

Sub-section (1): one remedy only

Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-sections (2) and (3). "Court" has the meaning in section 2(1)(e), explained in section 2.

Sub-section (2)(a): grounds the applicant must establish

Under clause (a) the party making the application must establish the ground on the basis of the record of the arbitral tribunal. The footnote shows those words as substituted by Act 33 of 2019, s. 7, for "furnishes proof that", with effect from 30-8-2019.

Sub-clauseGround as printed
(i)A party was under some incapacity
(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
(iii)The applicant was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise unable to present his case
(iv)The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission
(v)The composition of the tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless that agreement conflicted with a provision of Part I from which the parties cannot derogate, or, failing such agreement, was not in accordance with Part I

The proviso to sub-clause (iv) limits the damage: if the decisions on matters submitted to arbitration can be separated from those not submitted, only the part of the award that contains decisions on matters not submitted may be set aside.

The arbitration agreement in sub-clause (ii) is the one defined in section 7. Sub-clause (v) should be read with section 4, under which a party who knows of a non-compliance and proceeds without objecting in time is deemed to have waived the right to object.

Sub-section (2)(b): grounds the Court finds

Clause (b) is worded differently. The award may be set aside if the Court finds that:

  • the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force (sub-clause (i)); or
  • the arbitral award is in conflict with the public policy of India (sub-clause (ii)).

Explanation 1 says 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 says 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.

The footnote shows both Explanations as substituted by Act 3 of 2016, s. 18, for the earlier Explanation, with effect from 23-10-2015. Sections 75 and 81 are in Part III: see section 75 on confidentiality and sections 80 and 81 on evidence from conciliation.

Sub-section (2A): patent illegality

An arbitral award arising out of arbitrations other than international commercial arbitrations may also be set aside if the Court finds that the award is vitiated by patent illegality appearing on the face of the award. The proviso says an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence. The footnote shows sub-section (2A) as inserted by Act 3 of 2016, s. 18, with effect from 23-10-2015.

Sub-section (3): the time limit

EventPeriod as printed
Applicant received the arbitral awardApplication may not be made after three months have elapsed from that date
A request under section 33 was madeThree months from the date on which that request was disposed of by the tribunal
Applicant prevented by sufficient causeThe Court may entertain the application within a further period of thirty days, but not thereafter

Section 31(5) requires a signed copy of the award to be delivered to each party. Corrections and additional awards under section 33 are covered in sections 32, 33 and 35.

Sub-section (4): a chance to cure

On receipt of an application, the Court may, where it is appropriate and a party so requests, adjourn the proceedings for a period it determines, to give the tribunal an opportunity to resume the arbitral proceedings or take such other action as in the tribunal's opinion will eliminate the grounds for setting aside. Section 32(3) keeps the tribunal's mandate alive for this purpose.

Sub-sections (5) and (6): prior notice and one year

An application under section 34 shall be filed only after issuing a prior notice to the other party, and shall be accompanied by an affidavit by the applicant endorsing compliance with that requirement (sub-section (5)). The application shall be disposed of expeditiously, and in any event within one year from the date on which that notice is served upon the other party (sub-section (6)). Both are shown as inserted by Act 3 of 2016, s. 18, with effect from 23-10-2015.

The text prints no form for the notice, no minimum gap between notice and filing, and no consequence if the one year is exceeded.

Jammu and Kashmir and Ladakh

Under a heading "State Amendment", the text prints an entry for the Union territories of Jammu and Kashmir and Ladakh, citing the two Adaptation Orders of 2020. It inserts after sub-section (2) a sub-section (2A) on patent illegality that is not limited to arbitrations other than international commercial arbitrations, and in sub-section (3) substitutes "six months" for "three months" and "sixty days" for "thirty days". This applies only there; it is not the general rule.

How section 34 connects with the rest of Part I

  • Sections 13(5) and 16(6). Where a challenge to an arbitrator, or a plea on jurisdiction, is rejected, the tribunal continues and makes the award, and the party may then apply to set it aside in accordance with section 34.
  • Section 36. Filing the application does not by itself stay the award; see section 36.
  • Section 37(1)(c). An appeal lies from an order setting aside or refusing to set aside an award; see section 37.
  • Section 43(4). Where the Court sets an award aside, the period between commencement of the arbitration and the Court's order is excluded in computing limitation for fresh proceedings on the dispute.

An example

Gomti Packaging receives the signed award in its arbitration with Vaigai Exports on a given date and makes no request under section 33. Its application under section 34 may not be made after three months from that date. Before filing, Gomti must issue a prior notice to Vaigai and prepare the affidavit required by sub-section (5). If Gomti wants enforcement held back in the meantime, it needs a separate application for stay under section 36(2).

Common mistakes

  • Treating section 34 as an appeal on facts; Explanation 2 and the proviso to sub-section (2A) rule out a review on the merits and reappreciation of evidence.
  • Filing without the prior notice and affidavit under sub-section (5).
  • Counting on more than thirty days beyond the three months; the proviso ends with "but not thereafter".
  • Assuming that filing stays the award (section 36(2)).

Need help with a challenge?

The grounds are narrow and the period is short. Our legal dispute resolution service reviews the award and the tribunal's record against section 34(2) and (2A), prepares the prior notice, and advises on a stay application.

Key takeaways

  • Section 34 is the only recourse to a Court against an award under Part I.
  • Clause (a) grounds are established by the applicant on the tribunal's record; clause (b) grounds are found by the Court.
  • Public policy is confined by Explanations 1 and 2.
  • Patent illegality under sub-section (2A) applies to arbitrations other than international commercial arbitrations.
  • Three months, plus thirty days on sufficient cause, but not thereafter; prior notice and affidavit are required.

Read next

Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 34

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the time limit to challenge an arbitral award?

Three months from the date the applicant received the award, or from disposal of a section 33 request. The Court may allow a further thirty days on sufficient cause, but not thereafter (section 34(3)).

Can the Court re-examine the evidence?

The proviso to section 34(2A) says an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence.

Read the clause that says what happens when things go wrong; it is the one you will use.

— TaxClue Legal Desk

Section 34: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 7 questions readers ask most on this topic.

Three months from the date the applicant received the award, or from disposal of a section 33 request. The Court may allow a further thirty days on sufficient cause, but not thereafter (section 34(3)).

The proviso to section 34(2A) says an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence.

Explanation 1 limits it to three cases: fraud, corruption or violation of section 75 or 81 in the making of the award; contravention with the fundamental policy of Indian law; and conflict with the most basic notions of morality or justice.

Section 34(5) says the application shall be filed only after issuing a prior notice to the other party, with an affidavit endorsing compliance.

Under the proviso to section 34(2)(a)(iv), where decisions on matters submitted can be separated from those not submitted, only the part dealing with matters not submitted may be set aside.

Section 34(2A) is worded for awards arising out of arbitrations other than international commercial arbitrations.

Yes. Section 37(1)(c) lists an order setting aside or refusing to set aside an arbitral award under section 34.