Section 34 Arbitration Act 1996 governs SETTING ASIDE of ARBITRAL AWARD:

Question

Accepted Answer

B.

1. Section 34 Arbitration and Conciliation Act 1996 (substantially amended 2015 and 2019) governs SETTING ASIDE of arbitral awards.
2. Section 34(1): recourse to a court against an arbitral award may be made only by an APPLICATION FOR SETTING ASIDE such award.
3. Section 34(2): an arbitral award may be set aside only if:
4. (a) A PARTY furnishes proof that:
5. (i) the party was under some INCAPACITY;
6. (ii) the AGREEMENT was not valid;
7. (iii) the party was not given PROPER NOTICE of appointment or the proceedings, or was otherwise unable to present his case;
8. (iv) the award deals with a dispute NOT CONTEMPLATED BY the agreement;
9. (v) the COMPOSITION of the arbitral tribunal or the procedure was not in accordance with agreement of the parties.
10. (b) The COURT finds that:
11. (i) the SUBJECT-MATTER is not capable of settlement by arbitration; OR
12. (ii) the arbitral award is in CONFLICT with the PUBLIC POLICY of India.
13. EXPLANATION 1: 'public policy' includes: (i) fraud or corruption; (ii) contravention of fundamental policy of Indian law; (iii) shocking the conscience.
14. EXPLANATION 2: 'patent illegality' (domestic awards only) — narrowed by 2015 amendment.
15. Section 34(3): application within 3 MONTHS of receiving award; extendable by 30 days for sufficient cause.
16. 2019 Amendment added Section 34(2)(a)(iv) — narrowing of public policy review.
17. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 34 (substantially amended 2015 and 2019)_