AI Overview...
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Section 34(5) of the Arbitration & Conciliation Act, 1996 is generally considered directory and not mandatory. Multiple sources (e.g., Bharat Sanchar Nigam Limited VS Micro and Small Enterprises Facilitation Council Jaipur (Third) - Madras, Srei Infrastructure Finance Limited VS Candor Gurgaon Two Developers And Projects Pvt. Ltd. - Calcutta, CHIEF MANAGER AND MANAGING DIRECTOR Vs M/S BABA RAMDEV FOUNDRY THROUGH PROPERIETOR SMT. SHANTI DEVI W/O KANAHIYA LAL - Rajasthan, Muthu VS Indusind Bank Limited, Represented by its Power of Attorney R. S. Bharath - Madras) emphasize that compliance with this subsection is procedural and the courts have held that non-compliance does not necessarily invalidate proceedings, provided the principles of natural justice are observed.
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The Supreme Court and various High Courts have consistently held that the notice requirement under Section 34(5) is not mandatory but procedural, and failure to strictly adhere to it does not automatically render an application invalid (Bharat Sanchar Nigam Limited VS Micro and Small Enterprises Facilitation Council Jaipur (Third) - Madras, Srei Infrastructure Finance Limited VS Candor Gurgaon Two Developers And Projects Pvt. Ltd. - Calcutta, CHIEF MANAGER AND MANAGING DIRECTOR Vs M/S BABA RAMDEV FOUNDRY THROUGH PROPERIETOR SMT. SHANTI DEVI W/O KANAHIYA LAL - Rajasthan, Muthu VS Indusind Bank Limited, Represented by its Power of Attorney R. S. Bharath - Madras).
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The courts have clarified that the rigour of the language in Section 34(3) and proviso to subsection (3) limits condonation of delays beyond 30 days, but even then, procedural irregularities in Section 34(5) are generally not viewed as mandatory violations (General Manager, Southern Railway, Chennai VS Eagle-Omega & KR & Co. (JV) Represented by its Lead Partner C. Karnan, Co-Operative Society, Coimbatore - Madras, Swift Tech Engineers (India) Private Limited VS Bindhu Techflow Solutions Private Limited - Madras).
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The Supreme Court’s decision in cases like Bhumi Vikas Bank and Sangyong reinforces that technical non-compliance with Section 34(5) does not necessarily invalidate an application unless it contravenes specific mandatory provisions, such as those under Section 31(3) regarding delivery of arbitral awards (Late Shivaram Gujjal by his Legal Representatives Smt. Renuka Gujjal VS National Highway Authority of India - Karnataka, Swift Tech Engineers (India) Private Limited VS Bindhu Techflow Solutions Private Limited - Madras).
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Courts have also held that Section 34(5) objections are procedural and do not affect the substantive validity of arbitral awards unless there is a clear violation of mandatory provisions like Section 31(5), which mandates delivery of the award (Late Shivaram Gujjal by his Legal Representatives Smt. Renuka Gujjal VS National Highway Authority of India - Karnataka, Bharat Sanchar Nigam Limited VS Micro and Small Enterprises Facilitation Council Jaipur (Third) - Madras).
Analysis and Conclusion:
The prevailing judicial view, supported by Supreme Court rulings, is that Section 34(5) of the Arbitration & Conciliation Act, 1996, is directory rather than mandatory. Non-compliance with this subsection generally does not invalidate an application to set aside an arbitral award, provided that the principles of natural justice are observed and no mandatory statutory provision is contravened. The courts have consistently distinguished procedural irregularities from mandatory violations, emphasizing that substantive validity of arbitral awards remains intact despite procedural lapses related to Section 34(5).
Search Results for "Section 34 5 Not Mandatory Supreme Court"
2020 0 Supreme(Mad) 2416 • India - Madras
M.SUNDAR
that pre-application notice under subsection (5) of Section 34 is directory and not mandatory, but the observation made by Hon'ble ... also reminds itself that owing to Hon'ble Supreme Court having held that pre-application notice under sub-section (5) of Section ... Micro, Small and Medium Enterprises Development Act, 2006 – Section 34(3),34(5....
2018 0 Supreme(Cal) 511 • India - Calcutta
ASHIS KUMAR CHAKRABORTY
(5) and (6) of Section 34 of the Act are purely procedural and directory in nature, and not mandatory. ... Finding of the Court: The court found that the provisions in sub-sections (5) and (6) of Section 34 of the Act are ... and directory in nature, and not mandatory. ... In the said decisions the Division Bench of the Patna High Court and D....
2023 Supreme(Online)(RAJ) 14731 • India - High Court Of Rajasthan
NARENDRA SINGH DHADDHA
Finding of the Court: The court held that Section 34(5) of the Act is directory, not mandatory, and objections to an ... Issues: Whether Section 34(5) of the Arbitration & Conciliation Act, 1996 is mandatory or directory. ... Ratio Decidendi: The court relied on the Supreme Court's decision in The State of Bihar & Ors. Vs. ... thereto and hold Sect....
2019 0 Supreme(P&H) 790 • India - Punjab and Haryana
JAISHREE THAKUR
Finding of the Court: The court found that compliance of Section 34(5) of 1996 Act is not mandatory and the provisions ... under Section 34 of 1996 Act. ... Issues: The issues involved compliance of Section 34(5) of 1996 Act and the applicability of 2006 Act to the proceedings initiated ... Sandeep Singh Deol, learned DAG Punjab, appearing on behalf of the appellant contends t....
2020 0 Supreme(Mad) 218 • India - Madras
M.SUNDAR
The court also held that it cannot review the merits/facts under Section 34 of the A and C Act. ... It held that the petitioner's evasive tactics were not acceptable and that the court cannot review the merits/facts under Section ... Arbitration - Loan Agreement - The Arbitration and Conciliation Act, 1996 (Act No.26 of 1996) - Section 34 Fact of the Case ... Though Bhumi Vikas Bank case is an authority for the broad proposition that sub-se....
2023 0 Supreme(Kar) 540 • India - Karnataka
SACHIN SHANKAR MAGADUM
Karmyogi Shelters Private Limited, where the Supreme Court clarified that the term "party" in Section 31(5) refers to a person directly ... Section 31(5), and held that the delivery of a signed copy of the arbitral award to each party is mandatory. ... Arbitration and Conciliation Act - Section 34, Section 151, Section 31(5), Section 2(1)(h) - The cour....
2020 0 Supreme(Mad) 2192 • India - Madras
M.SUNDAR
applicants, is 30 days delay in filing said OP - Held, Post disposal of Section 34 application also, an intra-court appeal has been ... arbitral awards and Section 5 of A and C Act, which makes it clear that there shall be minimum judicial intervention - This has ... Arbitration and Conciliation Act, 1996 - Section 34 - Arbitral award – Setting aside of - OP has been filed ... Though Bhumi Vikas Bank case law is an authority for the broad proposition that a pre-applic....
2020 0 Supreme(Mad) 1820 • India - Madras
M.SUNDAR
under the proviso to sub-section (3) of Section 34 of the A and C Act. ... (3) of Section 34 of the A and C Act. ... day beyond 30 days could not be condoned due to the rigour of the language in the proviso to Section 34(3) of the A and C Act. ... Though Bhumi Vikas Bank case law is an authority for the broad proposition that a preapplication notice under sub-section (5) of Section 34#HL....
2020 0 Supreme(Mad) 2087 • India - Madras
M.SUNDAR
Hon'ble Supreme Court has declared in no uncertain terms that if an AT contravenes section 31(3) of the A and C Act, that would certainly ... A and C Act - sub section (6) of section 34 - Commercial Courts, Commercial Division and Commercial Appellate ... In Ssangyong, Supreme Court has made it clear that this aspect of challenge to an arbitral award - Captioned OP is allowed ... This Court reminded itself that Boomi Vikas Bank Sam....
2020 0 Supreme(Mad) 175 • India - Madras
M.SUNDAR
Arbitration and Conciliation Act - Challenge to Arbitral Award - Section 34 Fact of the Case: The petitioner filed ... an Original Petition under Section 34 of the Arbitration and Conciliation Act, 1996, to set aside the award passed by the arbitrator ... the impugned interim award and impugned award fit into the slots under Section 34, and ordered that there shall be no order as to ... Though Bhumi Vikas case law is an authority for the broad proposition that notice under sub-#HL_STA....
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