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Arbitration and Conciliation Act, 1996: Easy Explanation of Chapter VII and Chapter VIII

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Chapter VII and Chapter VIII of the Arbitration and Conciliation Act, 1996 deal with Setting aside the arbitral award and enforcement of the arbitral award respectively. Let us learn the provisions stipulated in these chapters in detail:

Chapter VII of the Arbitration and Conciliation Act, 1996, deals with the setting aside of arbitral awards, providing a mechanism for parties to challenge an arbitral award before the court if certain grounds are met. Here’s an elaboration:

Section 34 – Application for Setting Aside Arbitral Award

This section outlines the grounds on which a party may apply to the court for setting aside an arbitral award. The grounds include incapacity of parties, invalid arbitration agreement, violation of due process, or contravention with public policy. The court has the authority to set aside the arbitral award if any of these grounds are established by the applicant.

Chapter VIII of the Arbitration and Conciliation Act, 1996, focuses on the enforcement of arbitral awards, emphasizing their finality and enforceability. Here’s an elaboration:

Section 35 – Finality of Arbitral Awards

Section 35 emphasizes the finality of arbitral awards once they are made. It states that an arbitral award shall be final and binding on the parties, and it shall not be subject to appeal except as provided for in Section 37. This provision underscores the importance of honoring arbitral awards as conclusive resolutions of disputes.

Section 36 – Enforcement of Arbitral Awards

Section 36 deals with the enforcement of arbitral awards. It states that once the time for challenging the award has expired, or any challenge has been dismissed, the award shall be enforced in accordance with the Code of Civil Procedure, 1908. This provision ensures that arbitral awards are given effect and implemented as per the procedural requirements of the civil court.

In summary, Chapter VII provides a mechanism for challenging arbitral awards on specific grounds, while Chapter VIII emphasizes the finality and enforceability of arbitral awards and outlines the procedures for their enforcement. Together, these chapters ensure that arbitral awards are respected, honored, and effectively implemented, thereby contributing to the efficiency and credibility of the arbitration process.

Chapters VII and VIII of the Arbitration and Conciliation Act, 1996, are pivotal components of the legislative framework governing arbitration proceedings in India.

Chapter VII, encapsulated in Section 34, delineates the grounds upon which an arbitral award may be challenged and set aside by the court. This provision ensures that parties have recourse to judicial review in cases where there are significant irregularities or violations of procedural fairness, thereby safeguarding the integrity of the arbitration process.

On the other hand, Chapter VIII, encompassing Sections 35 and 36, underscores the finality and enforceability of arbitral awards. Section 35 emphasizes the conclusive nature of arbitral awards, establishing them as binding and non-appealable except under specific circumstances outlined in Section 37. Section 36 outlines the procedures for the enforcement of arbitral awards, emphasizing compliance with the Code of Civil Procedure, 1908, and ensuring that arbitral awards are given effect and implemented effectively.

Together, Chapters VII and VIII of the Arbitration and Conciliation Act, 1996, strike a delicate balance between providing avenues for judicial review and upholding the autonomy and sanctity of arbitral awards. They contribute to the efficiency, credibility, and enforceability of the arbitration process, thereby promoting the expeditious resolution of disputes and fostering confidence in alternative dispute resolution mechanisms.

Also read: Arbitration and Conciliation Act 1996: Easy Explanation of Chapter V and Chapter VI

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Rajesh Pant
Rajesh Panthttps://managemententhusiast.com
My name is Rajesh Pant. I am M. Tech. (Civil Engineering) and M. B. A. (Infrastructure Management). I have gained knowledge of contract management, procurement & project management while I handled various infrastructure projects as Executive Engineer/ Procurement & Contract Management Expert in Govt. Sector. I also have exposure of handling projects financed by multi-lateral organizations like the World Bank Projects. During my MBA studies I developed interest in management concepts.
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