Trace Your Case

ISSUE:

Whether the Meghalaya High Court's decision to overturn the arbitral award was justified on the basis of 'patent illegality.'

Whether the Amendment Act of 2015's modifications to the Arbitration and Conciliation Act of 1996 should be considered in this instance?

RULE:

Section 34(2A) of the Arbitration and Conciliation Act, 1996, empowers the court to vacate a domestic arbitral ruling if it is tainted by 'patent illegality' on the face of the award. The term "patent illegality" refers to situations in which the arbitrator's ruling is determined to be perverse, unreasonable, or opposed to substantive provisions of law, the 1996 Act, or the conditions of the contract.

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