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The Supreme Court of India establishes the definitive framework for judicial interference in arbitral awards under Section 34 of the Arbitration and Conciliation Act, 1996. This landmark ruling clarifies the boundaries of court intervention, emphasizing that courts cannot function as appellate bodies by re-evaluating evidence or substituting their own interpretations for those of arbitrators.
within Law Department Performance, Compliance and International Law topic(s)
In Associate Builders v. Delhi Development Authority, the Supreme Court of India lays down the definitive framework on judicial interference in arbitral awards under Section 34 of the Arbitration and Conciliation Act, 1996. The Court firmly held that courts cannot act as appellate bodies by re-evaluating evidence or substituting their own interpretation, reinforcing that the arbitrator is the final authority on facts and evidence.
This episode explains how the Court clarified the scope of “public policy” and “patent illegality,” emphasizing that only serious violations such as perversity or breach of natural justice justify setting aside an award. The ruling is a cornerstone of Indian arbitration law, ensuring minimal court interference and strengthening confidence in the arbitral process.
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