What Is The Scope Of Section 34(4) Of The Arbitration & Conciliation Act, 1996 ("Act")

The Arbitration & Conciliation Act, 1996 ("Act") was brought on to the statute books in the beginning of the year 1996. Undeniably, the Act and its provisions are widely used for resolution of disputes, primarily commercial. Section 34(2) provides grounds for challenging the award. It has been consistently held by several courts in India including the apex court that scope of challenge to an arbitral award under Section 34 (2) is very limited. An award can be set aside only if it contrary to public policy, suffers from patent illegality or perversity or is such that it would shock the conscience of a court of law. An arbitrator being the sole judge of law and fact is entitled to take a view on facts involved in the matter and his interpretation of a contractual term is to be respected, whenever the same is plausible one.