Question

An arbitral award may be set aside under the Arbitration and Conciliation Act, 1996 on the grounds of:

• A. improperly constituted arbitral tribunal
• B. subject matter not being capable of settlement by arbitration
• C. party being under an incapacity
• D. all of the above

Hint:

Section 34(2) lists exhaustive statutory grounds for setting aside arbitral awards; incapacity, non-arbitrability, and improper constitution are all included.

Answer 1

The Correct Option is D

Step 1: Section 34(2) grounds.
Under s.34(2) ACA, an award may be set aside if:
- (i) party was under incapacity,
- (ii) arbitration agreement invalid,
- (iii) improper notice or inability to present case,
- (iv) tribunal beyond scope of submission,
- (v) composition of tribunal or procedure not in accordance with agreement,
- (vi) subject matter not capable of arbitration,
- (vii) award in conflict with public policy.
Step 2: Application to options.
- (a) falls under s.34(2)(a)(v) — improper constitution.
- (b) falls under s.34(2)(b) — non-arbitrable subject matter.
- (c) falls under s.34(2)(a)(i) — incapacity of party.
- Hence, all three are valid grounds.
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