Challenging an Arbitral Award in India: Section 34 Guide

An arbitral award is final and binding, but it is not beyond review. Section 34 of the Arbitration and Conciliation Act, 1996 lets a party apply to court to set an award aside on limited grounds. The deadlines are strict, the grounds are narrow, and the Supreme Court has recently clarified how far courts can go in modifying an award. This article explains what you need to know, whether you are challenging an award or defending one.

Section 34 is not an appeal

A court hearing a Section 34 application does not re-hear the case or re-weigh the evidence. Explanation 2 to Section 34(2)(b) expressly says that the test of public policy shall not entail a review on the merits of the dispute. The question is not whether the court would have decided differently, but whether the award falls within one of the grounds the Act recognises.

Grounds for setting aside an award

Grounds the applicant must establish (Section 34(2)(a))

• a party was under some incapacity;
• the arbitration agreement is not valid under the law that governs it;
• the applicant was not given proper notice of the appointment of the arbitrator or of the proceedings, or was otherwise unable to present its case;
• the award deals with a dispute outside the scope of the reference (only the offending portion may be set aside if it can be separated);
• the composition of the tribunal or the procedure was not in accordance with the parties’ agreement or Part I of the Act.

Grounds the court can find on its own (Section 34(2)(b))

• the subject matter is not capable of settlement by arbitration (for example, certain criminal, matrimonial or insolvency matters);
• the award is in conflict with the public policy of India. After the 2015 amendment, this is limited to cases where the award was induced or affected by fraud or corruption, contravenes the fundamental policy of Indian law, or conflicts with the most basic notions of morality or justice.

Patent illegality (Section 34(2A))

For domestic awards (not international commercial arbitrations), an award may also be set aside if it is vitiated by patent illegality appearing on the face of the award. Mere erroneous application of law or re-appreciation of evidence is not enough. In Ssangyong Engineering v. NHAI (2019), the Supreme Court explained that an award may be patently illegal if it gives no reasons, ignores vital evidence, relies on evidence behind a party’s back, or takes a view that no fair-minded person could take.

The deadline: three months, plus 30 days, and no more

An application under Section 34 must be filed within three months from the date the applicant received the signed award. The court may allow a further 30 days if sufficient cause is shown, “but not thereafter”. Section 5 of the Limitation Act does not apply, so a delay of even one day beyond this outer limit is fatal.

If a party has asked the tribunal to correct or interpret the award under Section 33, time runs from the date that request is disposed of. In NHAI v. T. Younis (2026), the Supreme Court confirmed this but warned that frivolous Section 33 applications filed only to extend time can attract costs.

Before filing, the applicant must issue prior notice to the other party, and the application must be supported by an affidavit confirming this (Section 34(5)). Courts are expected to decide the application within one year of service of that notice (Section 34(6)).

Corrections are not a back door

Section 33 allows the tribunal, within 30 days of the award, to correct computation, clerical or typographical errors, to give an interpretation if the parties agreed, or to make an additional award on claims it omitted. In Gujarat Water Supply and Sewerage Board v. Saryu Plastics (May 2026), the Supreme Court held that this power cannot be used to make substantive changes, such as altering the method of calculating interest.

Can the court modify an award?

For years, courts disagreed on whether they could only set an award aside or also modify it. A five-judge bench settled this in Gayatri Balasamy v. ISG Novasoft Technologies (30 April 2025), holding by a 4:1 majority that courts have a limited power to modify. A court may:

• set aside an invalid portion of the award where it is severable from the rest;
• correct clerical, computational or typographical errors apparent on the face of the record;
• modify post-award interest in some circumstances; and
• in the case of the Supreme Court, exercise its power under Article 142 with great caution to bring the litigation to an end.

The court cannot rewrite the award on its merits. If the correction is debatable, the proper course is to set aside or to remand the matter to the tribunal under Section 34(4), which allows the tribunal to resume the proceedings and eliminate the defect.

Does a challenge stop enforcement?

No. Since 2015, filing a Section 34 application does not automatically stay the award (Section 36(2)). The award-debtor must apply separately for a stay, and the court may impose conditions. For money awards, courts normally require the amount, or a substantial part of it, to be deposited or secured. Under the 2021 amendment, the court must grant an unconditional stay if it is prima facie satisfied that the arbitration agreement or the award was induced or effected by fraud or corruption.

Appeals and other remedies

• An order setting aside or refusing to set aside an award can be appealed under Section 37. The appellate court’s scope is no wider than that of the Section 34 court.
• A writ petition under Articles 226 or 227 is not a substitute. In 2026 the Supreme Court again held that High Courts should not use writ jurisdiction to set aside an arbitrator’s orders when the Section 34 remedy is available.
• Foreign awards cannot be set aside in India. Their enforcement can only be resisted on the grounds listed in Section 48.

Enforcing the award

If no Section 34 application is filed within time, or the challenge fails and no stay is in force, the award can be executed as a decree under the Code of Civil Procedure. Execution can be filed directly in the court where the debtor’s assets are located; no transfer of the decree is needed.

Practical checklist

If you lost the arbitration:

• Note the date you received the signed award and calculate the three-month deadline immediately.
• Decide quickly whether a Section 33 correction is genuinely needed.
• Send the Section 34(5) notice, and prepare a separate stay application with your proposal for security.

If you won the arbitration:

• Watch the limitation period; if no challenge is filed, move for execution.
• If a challenge is filed, oppose any unconditional stay and seek a deposit or security.
• Consider Section 9 relief to secure assets until the award is enforced.

Frequently asked questions

Can I challenge an award because the arbitrator got the facts wrong?

Generally no. Re-appreciation of evidence is not a ground under Section 34. The award must be shown to be perverse, patently illegal or in conflict with public policy as narrowly defined.

What if I miss the 3-month-plus-30-day deadline?

The court has no power to condone delay beyond that period, and the application will be dismissed as time-barred.

Which court hears a Section 34 application?

The court at the seat of arbitration: the principal civil or commercial court, or the High Court for an international commercial arbitration or where the High Court has original jurisdiction.

For the full process from notice to award, read Arbitration in India: A Step-by-Step Guide. To secure assets while a challenge is pending, see Interim Relief in Arbitration: Section 9 vs Section 17.

Received an award? Act quickly

Avinash Law Offices advises award-holders and award-debtors on Section 34 challenges, stay and deposit applications, Section 37 appeals and execution as part of its arbitration practice. Contact us or book a consultation as soon as the award is received.

Setting aside an arbitral award: official sources

The text of Sections 33, 34, 36 and 37 is on India Code, and the Supreme Court judgments cited above are available on the Supreme Court of India website. If you have received an arbitral award, read our step-by-step guide to arbitration or contact us.

Frequently asked questions on challenging an arbitral award

How long do I have to challenge an arbitral award?

Three months from receiving the arbitral award, plus a further 30 days for sufficient cause, and no more.

Does challenging an arbitral award stop its enforcement?

No. The arbitral award can be enforced unless the court grants a stay on a separate application under Section 36.

Can the court change the amount in an arbitral award?

Only in limited ways, such as correcting computational errors or severing an invalid part, following the Supreme Court’s 2025 ruling in Gayatri Balasamy.

This article is for general information only. It does not constitute legal advice or a solicitation of work. Facts and law change; please take specific advice on your matter.