Recourse against Arbitral Award—An Introduction

Recourse against arbitral award is a legal action conferred by arbitration law. It provides some recourse to overturn the arbitral award in case it contains some faults or competes with the public policy. This solution makes the arbitration fairly accountable. The time in which court challenges need to be instituted is prescribed, and proper procedure needs to be adhered to by parties in raising such challenges.

Reasons to Recourse

Taking recourse against an arbitral award is restricted to certain grounds. These involve infringement of natural justice, wrongful exercise of law, fraud, and discrimination by the arbitrators. Courts do not tend to intrude on the decision. On the contrary, they are concerned with the essentiality of using a fair, lawful, and impartial procedure. This safeguards the two sides against misuse.

Procedure of Challenge

In order to initiate a recourse against an arbitral award, the party must form an application under Section 34 of the Arbitration and Conciliation Act, 1996. This must be accomplished within three months after the award is received. The grounds of challenge must be indicated well in the application. Courts check whether the award was carried out with the law and observed the rights of the parties.

The role of courts

Courts play a narrow role in recourse against arbitral awards. They do not operate as an appeal tribunal; they are the ones to ensure that the arbitration procedure was transparent and that it was legal. The court may set aside the award where the award goes against the public policy, against morality, and where it is procedurally flawed. Otherwise, this award will be binding and final.

Resource Limitations

Even though protection against the arbitral award is entrenched in recourse, this does not imply absolute protection. The parties are not able to challenge on the basis of the decision-making because they do not like it. Facts and evidence will not be retreated by courts. Only consider procedural and legal fairness as seen. This regulation helps in making sure that arbitration does not become lengthy litigation.

FAQs

Q1: How much time is needed to file recourse?

Ans: The recourse will have to be filed within three months of the arbitral award receipt by the party. In exceptional circumstances, the court can allow an extension of a short time in some circumstances.

Q2: Are the parties able to lodge an appeal directly against the award?

Ans: No, no direct appeal is allowed against an arbitral award. There is no other solution than applying under section 34 of the Arbitration and Conciliation Act.

Q3: Does recourse allow re-examination of evidence?

Ans: Recourse is not an option to review all facts or evidence. Courts analyze the arbitral procedure solely according to the criteria of justice, fairness, and legality, but never according to merits.

Q4: Is it possible to waive the right of recourse in advance?

Ans: No, prior to award, parties are not deprived of their right of recourse. The right to challenge is to allow fairness, and the courts believe it is highly important under the arbitration law.