Prospective application of Section 34(5): prior-notice requirement did not govern a pre-amendment arbitral challenge.

Section 34(5) of the Arbitration and Conciliation Act, 1996 did not apply to a challenge against an arbitral award where the arbitral proceedings had commenced before 23.10.2015. Section 26 of the 2015 Amendment Act made the amendments prospective unless the parties agreed otherwise, and commencement under Section 21 is fixed by receipt of the request for reference by the respondent. As the proceedings had begun long before the amendment date and there was no contrary agreement, the prior-notice requirement under Section 34(5) could not be invoked to defeat maintainability. The objection was therefore unsustainable, and the matter was remitted for consideration on the remaining issues.

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Issues: Whether Section 34(5) of the Arbitration and Conciliation Act, 1996 applied to an application challenging an arbitral award where the arbitral proceedings had commenced before 23.10.2015.

Analysis: Section 26 of the Arbitration and Conciliation (Amendment) Act, 2015 made the amendments prospective unless the parties otherwise agreed. Section 21 of the Arbitration and Conciliation Act, 1996 governs commencement of arbitral proceedings from the date the request for reference is received by the respondent. As the arbitral proceedings in the case had commenced long before 23.10.2015 and there was no agreement to the contrary, the newly inserted requirement of prior notice under Section 34(5) did not apply.

Conclusion: The objection based on non-compliance with Section 34(5) was unsustainable, and the application under Section 34(1) could not be held not maintainable on that ground. The impugned order was liable to be set aside and the matter was remitted for consideration on the remaining open s.

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