The Legal Conundrum Of Partially Setting Aside The Arbitral Award

Arbitration has been deemed an effective alternative to traditional litigation for resolving disputes. However, the process of setting aside arbitral awards has been a subject of legal debate, particularly, when it comes to the concept of partially setting aside an arbitral award.

The legal framework governing arbitration in India is primarily enshrined in the Arbitration and Conciliation Act, 1996. Section 34(2)(a)(iv) [https://www.indiacode.nic.in/show-data?actid=AC_CEN_3_46_00004_199626_1517807323919&orderno=38] of the Act empowers the court with the power to partially set aside an arbitral award, as explicitly mentioned in the proviso. This provision allows the court to invalidate specific segment of the award that extends beyond the scope of the arbitration agreement, given that the severance of such part is possible. However, the practical application of this provision faces significant challenges due to the manner of its interpretation. Furthermore, while