Question
Under Section 34 of the Arbitration and Conciliation
Act, 1996, an application for setting aside an arbitral award must be made within what time period, and can it be condoned beyond that?Solution
Section 34(3) of the Arbitration and Conciliation Act, 1996 provides that an application to set aside an arbitral award must be made within three months from the date the applicant received the arbitral award. The proviso to Section 34(3) further allows the court to entertain the application after the expiry of three months if it is satisfied that the applicant was prevented by sufficient cause, but the additional period of condonation cannot exceed 30 days, not a day more. This strict outer limit was reaffirmed by the Supreme Court in Union of India v. Popular Construction Co. (2001).
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