Asked by a business owner in Bengaluru

The arbitrator has gone against us. Can we appeal the award?

Answered by Advocate Sharan Jain··Arbitration & Dispute Resolution

Short answer

There is no appeal on the merits. You can only apply under Section 34 to set the award aside on narrow grounds, within three months of receiving it, extendable by only 30 days for sufficient cause. Being wrong on the facts or the evidence is not a ground.

This is where expectations and the statute diverge most sharply. Arbitration trades appellate review for finality, and the courts guard that bargain.

There is no merits appeal

Section 34 provides for an application to set aside an award, not an appeal. A court hearing it does not re-appreciate evidence, does not substitute its own view, and will not interfere merely because another conclusion was possible. The Supreme Court has repeated this many times, and applications that read like appeals are dismissed.

The grounds

  • A party was under some incapacity, or the arbitration agreement is not valid
  • The party was not given proper notice of the appointment or the proceedings, or was otherwise unable to present its case
  • The award deals with a dispute outside the scope of the submission to arbitration
  • The composition of the tribunal or the procedure was not in accordance with the agreement
  • The subject matter is not arbitrable
  • The award conflicts with the public policy of India, which after the 2015 amendment is confined to fraud or corruption, contravention of the fundamental policy of Indian law, or conflict with basic notions of morality or justice
  • For purely domestic awards only, patent illegality appearing on the face of the award. This does not include an erroneous application of the law or a re-appreciation of evidence
The time limit is unforgiving
Three months from the date you received the award, extendable by a maximum of 30 further days on sufficient cause, and not one day beyond. Section 5 of the Limitation Act does not rescue a late application. Diarise the date the award is received, not the date it is signed.

Does a challenge stop enforcement

No, not automatically. Since the 2015 amendment, filing a Section 34 application does not operate as a stay of the award. You must apply separately for a stay, and the court may impose conditions, commonly a deposit or security for the awarded amount.

After Section 34

Section 37 allows an appeal against an order setting aside or refusing to set aside an award. Beyond that lies only a Special Leave Petition to the Supreme Court, which is discretionary and rarely entertained on the merits of a commercial award.

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Go deeper on this

This answer is the short version. These guides cover the same ground in full, with the procedure, the timelines and the leading cases.

SJ

Answered by

Advocate Sharan Jain

Advocate based in Bangalore, practising before the Karnataka High Court and District, Sessions, Consumer and Family courts. Answers public legal questions to make Indian law more accessible.

This answer is general information on Indian law as at July 27, 2026, published for public education. It is not legal advice, it does not take account of your facts, and reading it does not create an advocate-client relationship. Law changes and every case turns on its own circumstances. Please consult a qualified advocate about your own matter.

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We won the arbitration but they will not pay. How do we enforce the award?

Once the three month challenge window under Section 34 has passed, or a challenge has been dismissed, the award is enforced under Section 36 as if it were a decree of the court. You file an execution petition and use the ordinary attachment powers under Order 21 CPC.

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It is valid if it is in writing and shows a clear intention to refer disputes to arbitration for a binding decision. If it is, a court must refer the parties to arbitration under Section 8 when one of them asks, so the clause effectively removes the dispute from the ordinary courts.

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Are there disputes that cannot be sent to arbitration at all?

Yes. Criminal offences, matrimonial disputes, guardianship, insolvency and winding up, testamentary matters and eviction under rent control statutes are broadly non-arbitrable, because they involve rights in rem or a special forum created by statute.

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The other side is refusing to appoint an arbitrator. How do I get the arbitration started?

Send a written notice invoking arbitration under Section 21 and calling on the other side to concur in an appointment. If they do not act within 30 days, apply to the High Court under Section 11 and the court will appoint the arbitrator.

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I need an urgent order to stop assets being disposed of. Can I get one before the arbitration begins?

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Corporate & Commercial

A large company has not paid my invoice for months. Is there a faster remedy than a civil suit?

If you are a registered micro or small enterprise, yes. The MSMED Act, 2006 requires payment within 45 days, entitles you to compound interest at three times the RBI bank rate, and gives you a reference to the Micro and Small Enterprises Facilitation Council through the Samadhaan portal.

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