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Section 35: Finality of arbitral awards

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1996
Section 34 All 87 Sections Schedules (4th, 5th, 7th) Section 36

Legal Commentary & Landmark Judgments: Section 35

Section 35 of the Arbitration and Conciliation Act, 1996 establishes the finality of arbitral awards, declaring that subject to Part I (e.g., Section 34 setting aside), an arbitral award shall be final and binding on the parties and persons claiming under them respectively.

  • Final & Binding Nature: Subject to this Part, an arbitral award shall be final and binding on the parties and persons claiming under them respectively.
  • Statutory Res Judicata: Operates as res judicata between the parties regarding all claims, counterclaims, and controversies decided in the arbitral award.
  • Conditioned Solely by Section 34: The finality is subject only to an application for setting aside under Section 34 or appeal under Section 37; cannot be challenged through a separate collateral civil suit.
  • Decree Status Linkage: Provides the substantive legal foundation for execution under Section 36 as a decree of the civil court.
Key Landmark Precedents:
  • Hindustan Construction Co. Ltd. v. Union of India, (2020) 17 SCC 324: The Supreme Court authoritatively analyzed Section 35, holding that an arbitral award is a final and binding determination of civil rights; automatic stay of awards was unconstitutional as it eroded the finality guaranteed by Section 35.
  • Associate Builders v. Delhi Development Authority, (2015) 3 SCC 49: Reaffirmed that an arbitral award carries finality on facts; courts cannot sit as courts of appeal to reappreciate evidence.
Courtroom Practice & Strategic Litigation Guidance:

Rely on Section 35 to oppose any collateral civil suit or writ petition attempting to re-litigate issues decided in an arbitral award, pleading statutory res judicata and the exclusive remedial framework of Section 34.

Section 34 All 87 Sections Schedules (4th, 5th, 7th) Section 36