Arbitration: How It Works and How an Award Is Enforced
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides. How it works in India and how awards are enforced.
An arbitral award is the binding decision of an arbitral tribunal, enforceable as a civil court decree under the Arbitration and Conciliation Act, 1996.
An arbitral award is the formal, written decision that an arbitral tribunal issues at the conclusion of arbitration proceedings. It resolves the dispute between the parties and specifies the relief granted — whether monetary, declaratory, or requiring a party to do or refrain from something.
A domestic arbitral award becomes enforceable after the period to challenge it under Section 34 has passed (three months from receipt, plus 30 days if the court condones further delay) without a successful challenge. After that, it is enforced like any civil court decree — through the court's execution proceedings.
A foreign arbitral award from a New York Convention country is enforceable in India under Part II of the Act, subject to limited grounds for refusal.
An award can be challenged in the High Court under Section 34, but only on specific grounds: jurisdictional defects, procedural irregularities that prejudiced a party, matters outside the scope of submission, or conflict with India's public policy. Courts do not review whether the tribunal decided correctly on the merits — only whether the process was legally valid.
The challenge period is three months from receipt of the award, with a possible further 30-day extension for sufficient cause. After that, the right to challenge is extinguished.
Awards made outside India follow a separate route; see enforcing a foreign arbitral award in India.
Also known as: arbitration award
General information only — not legal advice.
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides. How it works in India and how awards are enforced.
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