Report No. 176
23. Amendment of section 34
In section 34 of the principal Act,-
(a) for sub-section (1), the following sub-sections shall be substituted namely:-
"(1) Recourse to a court against an arbitral award may be made only by an application for setting aside such award-
(a) in accordance with sub-sections (2) and (3) ; and
(b) in the case of an award made in an arbitration other than an international arbitration (whether commercial or not), in accordance with sub-sections (2) and (3) and the additional grounds mentioned in section 34A.
(1A) An application for setting aside an award under sub-section (1) shall be accompanied by the original award:
Provided that where the parties have not been given the original award, they may file in the court, a photocopy of the award signed by the arbitrators.";
(b) in sub-section (2), the Explanation shall be renumbered as Explanation 1 and after the Explanation 1 as so renumbered, the following Explanation shall be inserted ,namely:-
"Explanation.-2 For the removal of doubts, it is hereby declared that while seeking to set aside an arbitral award under sub-section (1) ,the applicant may include the pleas questioning the decision of the arbitral tribunal rejecting-
(i) a challenge made under sub-section (2) of section 13;
(ii) a plea made under sub-section (2) or sub-section (3) of section 16.";
(c) after sub-section (4), the following sub-sections shall be inserted, namely:-
"(5) Where the court adjourns the proceedings under sub-section (4) granting the arbitral tribunal an opportunity to resume its proceedings or take such other action and eliminate the grounds referred to in this section or in section 34A for setting aside the award, the arbitral tribunal shall pass appropriate orders within sixty days of the receipt of the request made under sub-section (4) by the Court and send the same to the court for its consideration.
(6) Any party aggrieved by the orders of the arbitral tribunal under sub-section (5), shall be entitled to file its objections thereto within thirty days of the receipt of the said order from the arbitral tribunal and the application made under sub-section (1) to set aside the award shall, subject to the provisions of sub-section (2) and (3) of section 37A, be disposed of by the court, after taking into account the orders of the arbitral tribunal made under sub-section (5) and the objections filed under this sub-section.".