Civil Procedure Code (CPC)

Whether Re- Arbitration is permissible?

This query is : Resolved 

09 July 2009

Once the award is passed by an arbitrator. It becomes the decree of the court and can be executed as such. However, when an arbitration is set aside by the court (under section 71 of engilsh law) then english Law says that it is a nullity. Therefore there is no award in the eyes of law and the parties may again go to the arbitration and hence rearbitration is possible. Now the question arises is it always the case even thought the award is set aside on merits? Is there any Indian or English Judgment on this aspect?

Parveen Kr. Aggarwal (Expert)
06 February 2010

Proceedings for setting aside award of an arbirator under section 34 of the Arbitration and Conciliation Act, 1996 cannot be equated with appeal. The award can be set aside on the limited grounds mentioned in the said provision. So there cannot be distinction in the manner that an award has been set aside on merits or otherwise. An award once set aside is nullity.

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