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Issues: Whether a consent award under Section 34 of the Arbitration and Conciliation Act, 1996 could be set aside on the grounds of alleged coercion, fraud, or alleged non-compliance with a separate memorandum of understanding.
Analysis: The challenge was founded on a belated allegation of coercion, but no particulars or supporting material were pleaded or shown. The record indicated that the petitioner's board had consciously authorised execution of the consent terms and a request for an award in those terms, and no objection was raised for several months after the award. Section 34(2)(b)(ii) and its Explanation were held to be inapplicable because the case did not involve fraud practised upon the tribunal; rather, the parties had knowingly sought an award on agreed terms. The consent terms contained no reference to the memorandum of understanding, and the award was not contingent upon performance of that separate arrangement.
Conclusion: The challenge to the consent award was unsustainable and the petition was dismissed.
Ratio Decidendi: A consent award cannot be set aside under Section 34 on the basis of vague and belated allegations of coercion or on account of disputes arising from a separate arrangement that is not incorporated into, or made conditional under, the consent terms.
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