​The Application to set aside an Arbitral Award

The Application to set aside an Arbitral Award
 
When parties agree to settle their issues via arbitration, they delegate decision-making authority to an independent, unbiased arbiter. But, in certain situations, the party that is dissatisfied with the result of the arbitration may seek to have the award set aside. The pertinent considerations surrounding the request to vacate an arbitral decision will be examined in this article.
 
 
Courts' Power to Overturn an Arbitral Award
 
Generally, an arbitral award may only be vacated by the courts of the arbitral seat. In some cases, such as when a nation's arbitration statute is employed to settle a dispute, the country's courts have the authority to overturn the judgment. Even if a country's legislation is employed to resolve the substantive problems, that country's Court needs more authority to overturn the arbitral result.
 
Reasons for Overturning an Arbitral Award
 
According to the New York Convention, parties may petition the competent Court to vacate an arbitral judgment based on the following:
 
(1) inability of a party to enter into the arbitration agreement; (2) invalidity of the arbitration agreement under the law chosen by the parties or the law of the seat of arbitration; (3) lack of proper notice of the appointment of the arbitrator or the arbitral proceedings, or inability to present one's case for other reasons beyond the party's control;
(4) the award deals with a dispute not contemplated by or falling within the terms of the submission to arbitration, but only if the decision on that issue can be separated from the rest of the award and has no effect on the remainder of the award; (5) the composition of the arbitral tribunal or the arbitral procedure was not by the parties' agreement or the law of the seat of arbitration unless such agreement conflicted with a law.
 
The Court's review of an Arbitral Award
 
The arbitrator's factual findings and legal reasoning are often unaffected by the Court's consideration of the arbitral award's procedural concerns. Several nations' laws enable parties to appeal certain legal problems in extraordinary situations. Even if the award demonstrates a mistake in interpreting the law in most nations, the Court does not reconsider it. The Court may set aside the arbitral result based on infringement of public policy in rare situations unless the parties can show that the arbitrator violated the law.
 
Putting aside an Arbitral Award
 
As previously noted, the party's legal representative may seek the Court with authority to have the arbitral award annulled in line with the jurisdiction's legislation. Before accepting the client's instructions, the legal representation should confirm if local law prohibits foreign attorneys from defending such matters with jurisdiction in the foreign Court.
 
After the Revocation of the Arbitral Award
 
The parties may begin a new arbitration procedure if an arbitral judgment is overturned, but the arbitration agreement is not declared void. If the initial arbitration agreement cannot be completed, the parties may negotiate to begin a new arbitration procedure or bring a case immediately.
 
To summarize, seeking to set aside an arbitral judgment is complicated and requires a full grasp of the applicable laws and processes. Before beginning the arbitration process, parties should carefully consider the grounds for revocation of an award and the limited scope of court review.