Procedure of filing an appeal against Arbitration Award Execution Petition
I had been awarded an award in arbitration against my sundry debtor and the award has been converted into decree , the execution petition has been fled in high court, the opposing party has filed an appeal against the execution petition and requested stay on the same . The grounds for objection in arbitration was non validity of arbitration clause on the opposing party in spite of a arbitration clause in our invoice. The objection was overruled and the award made valid. On what grounds can he appeal against the execution petition and what can we do to make our legal case strong?
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The decision of Arbitrator is final and no appeal lies against the same.However an objections against award can be filed u/s 34 of Arbitration and Conciliation Act 1986 but on limited grounds.If the award is against public policy or passed by Arbitrator beyond the scope of agreement or without having jurisdiction are the grounds on which award can be set aside else not.
Even though the interference of the Courts is reduced to a minimal level by the 1996 Act, losing parties are filing applications under S.34 and trying their level best to enhance the scope of S. 34 and make the courts to treat the challenge proceedings like a regular first appeal. Since in majority of the places in India, the powers to entertain the challenge under S.34 of the Act lies with the District courts, initially the loosing parties are able to delay the enforcement of arbitral awards for a longer time. Even though some High courts also, earlier admitted all such applications under S. 34 and treated the challenge proceedings like a regular appeal. Now many judges of the High Courts and the Supreme Court of India have realised the importance of protecting the arbitration by exercising their powers to interfere sparingly. The settled law of India mostly recognises the finality of arbitral awards and restricts the scope of the challenge.