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Section 34(2) of the Act lists the grounds on which an arbitral award may be set aside. Which of the following is NOT a ground under Section 34(2)?
A{'text': 'The award contains decisions on matters beyond the scope of the submission to arbitration or contemplated by the terms of the submission to arbitration on the record', 'label': 'A'}
B{'text': 'The award is unpopular with the public or has been criticised by independent media commentary in any media in any part of India under any provision of any law in force in any State of India', 'label': 'B'}
C{'text': 'The party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case before the tribunal', 'label': 'C'}
D{'text': 'A party was under some incapacity, or the arbitration agreement is not valid under the law to which the parties have subjected it or under the law for the time being in force', 'label': 'D'}
Answer & Solution
Correct answer: B. {'text': 'The award is unpopular with the public or has been criticised by independent media commentary in any media in any part of India under any provision of any law in force in any State of India', 'label': 'B'}
1. Section 34(2) of the Act lists the grounds for setting aside:
(a)(i) incapacity of a party; (a)(ii) invalid arbitration agreement; (a)(iii) lack of proper notice; (a)(iv) award beyond scope of submission; (a)(v) non-conformity of tribunal composition/procedure with the parties' agreement;
(b)(i) subject-matter not capable of arbitration; (b)(ii) award **in conflict with the public policy of India**.
2. Public policy is defined narrowly post-2015 (fraud/corruption, fundamental policy of Indian law, basic notions of morality/justice).
3. **Public unpopularity is NOT a statutory ground** — courts will not interfere on opinion-poll grounds.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 314-333._
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